Chairman's AGM Statement

RADSTONE TECHNOLOGY PLC
8 September 1999
                               
                    Radstone Technology PLC
                               
          Annual General Meeting : 8th September 1999
                               
                     Chairman's Statement
                               
At  today's Annual General Meeting of Radstone Technology PLC,
Chairman Rhys Williams said:

'I  am pleased to report that trading in the first five months
of  the  year is in line with our expectations, with sales  at
£10.0 million, 25% up on the equivalent period last year.

'Gross  profits in our VME business continue to  benefit  both
from  improved  manufacturing productivity and from  generally
lower world prices for DRAMs and other silicon components.  As
in previous years, trading will be weighted towards the second
half of the year.

'New  orders for the Group were again at an exceptionally high
level,  taking  the order book for future delivery  above  £27
million at the end of August, a record level.

'In  August  we  were pleased to receive a further  order  for
Octegra  graphics processors from Lockheed Martin for  the  US
Navy's LAMPS helicopter upgrade programme.  Deliveries against
this  latest  $10.7m  (£6.4m) order will  begin  in  2000  and
continue until 2004.  Radstone was first designed in  to  this
programme in mid 1997.

'Despite  increased  pressure  on  margins,  high  levels   of
activity  continued  at  Foundation  Technology,  the  Group's
manufacturing service business, with substantial increases  in
the  range of procurement, test and assembly services provided
to   civil   aerospace   customers,  following   last   year's
assimilation of the Eminent Technology business.

'As  a  result, Foundation Technology's sales in the  first  5
months  were  55%  above the corresponding period  last  year,
representing 25% of the Group's total sales in the period.

'This success is based on the provision of a highly responsive
manufacturing  service, operating close to  the  forefront  of
current  electronics  packaging technology.   We  continue  to
invest in the plant and processes which underpin that success.
A  major expansion of the Company's automatic in-circuit  test
capability  was  completed in the  early  part  of  the  year,
further  extending our ability to support our most  innovative
customers.

'The  restoration  of  the  Group  to  acceptable  levels   of
profitability  continues  to be a  major  objective  for  your
Board.

'Against  that  target,  the  year  has  begun  well.   Growth
continues  in our Contract Manufacturing business,  while  our
VMEbus   products  continue  to  enjoy  substantial   customer
support,  as demonstrated by the number and quality of  recent
design-wins and the level of our order book.

'We view the future with confidence.

'I also take this opportunity to confirm to shareholders that,
as of 20th September 1999, Radstone's FTSE classification will
be changed to 'Computer Hardware' a sub-sector of 'Information
Technology  Hardware'.   We believe  this  new  classification
better reflects the nature of the Group's operations.'
 
For further information, please contact:

Radstone Technology PLC                           01327 359444
Dr Charles Paterson, Managing Director
Jeff Perrin, Finance Director

Square Mile Communications Limited               0171 601 1000
Nick Oborne