Acquisition of Kemitron Manufacturing

Radstone Technology PLC
9 December 1999


      Radstone Technology PLC ('Radstone' or 'the Group')
    Acquisition of Kemitron Manufacturing ('Kemitron') for
                   approximately £4 million
                               
  Vendor placing of 2,126,916 Ordinary Shares at  122p  each.
                               

Radstone Technology PLC announced today that it  has  entered
into  an agreement to acquire the business and assets  of  the
Kemitron  Manufacturing  division of Kemitron  PLC  ('Kemitron
Manufacturing'),  for a total cash consideration of up to £4.0
million.

The  consideration will be satisfied as to £2.595  million  in
cash  by  the allotment of 2,126,916 ordinary shares of  12.5p
each  ('Placing  Shares') all of which are to be  placed  with
financial  institutions at 122p each.  The consideration  will
be  adjusted,  on a pound for pound basis, if  net  assets  at
completion  are  less  than  £1.25  million.   Completion   is
expected to take place on 10 December 1999.

Kemitron Manufacturing, a division of Kemitron PLC, is focused
on  state- of-the-art electronic assembly and testing and will
be  merged  with Foundation Technology, Radstone's  subsidiary
which  provides  surface  mount  assembly  services.  Kemitron
Manufacturing  will provide the Group with greater  purchasing
power  and increased geographical coverage and is expected  to
be  earnings  enhancing  in  the  first  full  year  following
acquisition.

Kemitron  Manufacturing is based in Hawarden, North Wales  and
achieved  a  contribution of approximately   £1.4  million  on
turnover of £12.2 million in the fifteen months ended 31 March
1999.   There  are no pre- tax numbers available  as  Kemitron
Manufacturing is a division of Kemitron PLC and  there  is  no
separate apportionment of certain overheads.  Similarly  there
is  no  separate balance sheet, but the net assets of Kemitron
Manufacturing as at 31 March 1999 are estimated to be £0.85m.

Application  has  been  made for  the  Placing  Shares  to  be
admitted to the Official List and it is expected that dealings
will commence on 10 December 1999.


Charles Paterson, Radstone Group Managing Director, commented:

'We  are  delighted to bring Kemitron Manufacturing  into  the
Radstone Group.  The combination of Foundation Technology  and
Kemitron  Manufacturing strengthens our operational resilience
and   capabilities   in  contract  electronic   manufacturing,
improves  yet  further  our  ability  to  respond  quickly  to
customer needs and offers us greater purchasing power.

'Kemitron Manufacturing is a very strong business and will  be
of  great benefit to the Group as we continue to build on  the
substantial progress we have made over recent years.'
                               
For further information:

Radstone  Technology PLC                        Tel:  [phone]
Charles Paterson, Group Managing Director
Jeff Perrin, Finance Director

Square  Mile  Communications                    Tel:  [phone]
Susan Ellis or Stephanie Smart