Preliminary Results

Radstone Technology PLC
5 June 2000


   Preliminary Results for the year ended 31 March 2000

Radstone  Technology  PLC,  one  of  the  world's   leading
suppliers of open architecture computer subsystems  to  the
industrial   and  defence  sectors,  announces  Preliminary
Results for the year ended 31 March 2000.

* Operating profit up 94% to £2.97m (1999: £1.53m)

* Pre-tax  profit  increased by 125% to  £2.66m  (1999:
  £1.18m)

* Normalised  earnings per share increased  by  66%  to
  11.17p (1999: 6.73p)

* Strong operating cash flow of £2.41m (1999: operating
  cash flow of £1.34m)

* New  orders  received reached a new record  level  of
  £51.34m, a 70% increase on last year's £30.22m.

* Acquisition   of   Kemitron  Manufacturing   for   a
  consideration of £3.5m on 9 December 1999.  Part  of  the
  consideration  was financed by the placing  of  2,126,916
  ordinary shares with financial institutions at 122p.

* The division's flagship PowerPC VMEbus product family
  recorded  a  77% year-on-year increase in shipments.  New
  product development continued at high levels, especially in
  the PowerPC and Graphics/DSP product areas.

Rhys Williams, Chairman, commented:

'Our  strategy  of focused development teams  dedicated  to
specific   areas   of  technology  has  been   particularly
successful.   New  product development  continued  at  high
levels,  especially in the PowerPC and Graphics/DSP product
areas.

'The  Radstone  Group enters the new year in the  strongest
position   in  the  Company's  history.   With  both   core
businesses  now firmly established in positions  of  market
leadership,  we  are confident of further progress  in  the
year ahead.'


For further information please contact:

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

Square Mile Communications Ltd                020 7601 1000
Stephanie Smart
                             

                             
                  Radstone Technology PLC
   Preliminary Results for the year ended 31 March 2000
                             
 Extracts from the Chairman's statement, operations review
                   and financial review

The  year  was  one of substantial progress,  with  further
improvements  in  sales revenue, new  orders  received  and
profit.

Profit  before  tax more than doubled to £2,661,000.   Last
year's pre-tax profit of £1,179,000 included an exceptional
cost  of £500,000. Basic earnings per share under FRS3 were
10.89p  (1999:  4.38p).   Normalised  earnings  per   share
increased by 66%, from 6.73p to 11.17p.

Total   sales  increased  by  24%  to  £30,163,000,  (1999:
£24,242,000).  On a comparable basis the total  would  have
been  £28,570,000  excluding  the  acquisition,  giving  an
increase of 18% over the previous year.

New  orders  received  during the year  to  31  March  2000
reached  a new record level of £51,335,000, a 70%  increase
on  last  year's £30,224,000.  At year-end, the order  book
for  future delivery stood at a record £45,137,000, up 108%
from £21,699,000 at the end of March 1999.

Business Development
It was pleasing to see our investment in the development of
the  Embedded  Computing business over the past  few  years
continue to pay off in increased deliveries and new  orders
received.   Our  strategy  of  focused  development   teams
dedicated  to  specific  areas  of  technology   has   been
particularly successful.

We continue to regard product innovation as a key factor in
our  competitive  success and last  year,  our  development
effort continued at the high level of approximately 10%  of
Radstone   Group  sales,  representing  an  investment   of
£2,981,000, (1999: £2,342,000).

The  year saw important changes in the contract electronics
manufacturing  business  carried  out  by  our   Foundation
Technology  subsidiary company, which has expanded  rapidly
in  recent years by providing a premium service to  product
designers  within  reach  of  the  assembly  facilities  at
Towcester.

Further  development  of  this  successful  business  model
requires  access  to additional customer  groups  in  other
areas  of  the  UK, coupled with the ability  to  offer  an
alternative source of supply to customers, thereby reducing
the risk associated with a single manufacturing site.

Both  issues  were  addressed with the acquisition  of  the
business  and assets of Kemitron Manufacturing in  December
1999.

The  acquired business was renamed FT Kemitron Ltd  and  is
now managed with Foundation Technology Ltd as a single sub-
contract  manufacturing business operating  from  sites  at
Towcester, Northamptonshire and Hawarden, Flintshire.   The
expanded  business addresses a specialist niche within  one
of  the  fastest  growing sectors  of  the  UK  electronics
industry.

At  the  time  of  the  acquisition it was  envisaged  that
several  months would be required for the full  integration
of  FT  Kemitron  and  that sales and production  would  be
adversely affected during this period.  This has  been  the
case  and,  in  consequence,  the  full  benefits  of   the
acquisition  will not be felt until later  in  the  current
year.

Radstone Group Structure and Strategy
The  Radstone  Group companies operate in partnership  with
system integrators and original equipment manufacturers, in
the electronics and computing markets.

The   Group  has  two  operating  businesses  which  occupy
positions   of   technological  leadership   within   their
respective specialisations:

The Embedded Computing business is the foremost provider of
computer  subsystem modules conforming  to  the  IEEE  1014
VMEbus standard and a recognised innovator in the field  of
ruggedised computer hardware.  It supplies high-performance
rugged  computer hardware to defence system integrators  in
most developed countries, but especially in the USA and the
UK.

The   Contract  Electronic  Manufacturing  (CEM)   business
specialises  in  the  assembly of small  and  medium  sized
batches  of  complex electronic structures. While  external
third party customers now represent over 80% of sales,  the
division continues to assemble most of Embedded Computing's
products  and to draw from a common pool of Radstone  Group
process  technology.  This provides substantial  capability
differentiation in the European subcontract market place.

The   Group's  unique  skills  in  defining,  managing  and
realising high-performance hardware solutions are reflected
in  the increasing number of long-time partnerships between
Radstone  and its major customers and by the growing  order
book for our goods and services.

Embedded Computing
                              2000              1999
                             £'000             £'000

Total Sales                 21,902            19,287
Inter Segment Sales              0                 0
External Sales              21,902            19,287
Operating Profit             2,094               100

Embedded Computing ended another successful year with sales
growth  of 13.6%, operating profit up by almost £2m and  an
order  book for future delivery of £40.2m, more than  twice
the equivalent 1999 figure.

The  flagship PowerPC VMEbus product family recorded a  77%
year-on-year increase in shipments.

Sales  in  the period followed the established pattern  for
the business, involving a relatively small number of system
integrators in the defence area. As in previous years, most
of  these  customers  were involved in  major  upgrade  and
retrofit programmes.

To  a large extent, the sales build-up in the year reflects
the   design-in  successes  of  earlier  years  into   such
programmes  and  their eventual progression  to  production
status at the completion of proving trials.

The  extended  duration  of  many  of  these  projects  was
underlined  by the shipment profile in the year,  with  the
fastest  transition  from design-win to  production  taking
around  11  months  and  the slowest,  approximately  three
years.

Product and Process Development
Investment  in new technology showed a further increase  in
the  year,  reaching  13.8% of Embedded Computing's  sales,
(1999: 13.4%).

Total development expenditure was £3,028,000 compared  with
£2,586,000  in 1999, (+17.1%). Within this total,  external
funding   was  virtually  negligible  at  £47,000,   (1999:
£244,000),  continuing the trend established  over  several
recent years.

Process    development,   (£415,000),   targeted    further
development of the heat management and packaging techniques
which  are  among  the  key differentiators  of  Radstone's
VMEbus   product   family.  New  manufacturing   processes,
(particularly affecting assembly techniques),  were  shared
with the CEM business.

New   product   development  continued  at   high   levels,
especially in the PowerPC and Graphics/DSP product areas.

Four  new PowerPC variants achieved first shipments  during
the year.

Among  these, Radstone's PPC4A implementation of Motorola's
G4  Altivec processor became the highest performance single
board  rugged computer currently available, with processing
capability  in  excess  of  1  GFLOP.   As  with   previous
upgrades,  PPC4A  maintains close  compatibility  with  the
successful  PReP  architecture that has enabled  Radstone's
customers  to  take  advantage of new technology  insertion
over successive processor generations.

Other  new PowerPC variants addressed important classes  of
land   vehicle  and  avionics  applications   where   major
production  order  announcements are  expected  within  the
current financial year.

In  the  DSP area, a new member of the successful  Vantegra
product family was introduced, utilising the latest  Analog
Devices Hammerhead SHARC processor. The new product  places
DSP processing power in excess of 7.2GFLOPS per VMEbus card
at the disposal of system designers in the radar, sonar and
image processing fields.

The  first  in  a new family of Fibrechannel communications
adapters achieved production release in the year, providing
1   Gbit/sec  secure  communication  capability   for   new
generations of naval, avionics and land vehicle systems.

CEM
                              2000              1999
                             £'000             £'000

Total Sales1                 9,912             6,527
Inter Segment Sales         (1,651)           (1,572)
External Sales               8,261             4,955
Operating Profit               877             1,426

          1 (Including 3 months of FT Kemitron)

Throughout fiscal 1999, the business comprised the  Group's
wholly  owned  Foundation  Technology  Limited  subsidiary,
based at Towcester.

This structure changed with the FT Kemitron acquisition  in
December  1999  and  the remainder  of  the  year  saw  the
creation  of  a  unified management structure  designed  to
optimise   the  operational  advantages  of  the   combined
businesses.

The  process  of  harmonising manufacturing  and  financial
systems  across  the enlarged business made  good  progress
during the final weeks, but will not be complete until  the
end of the second quarter of the current year.

The  Foundation  Technology part of the  business  returned
another   year  of  strong  revenue  growth.  Total   sales
increased  by  27.5%, while sales to external  third  party
customers   grew  by  34.6%  as  a  number  of  established
customers  released  production orders for  products  which
appeared  only  in  prototype  quantities  in  last  year's
figures.

By  contrast,  sales of manufacturing services  within  the
Radstone  Group, (i.e. to the Embedded Computing business),
grew  by  only  5.0%, reflecting a tendency for  Foundation
Technology to be reserved for the most difficult  prototype
and   pre-production   work.   The   revenue   effect   was
accentuated  by Embedded Computing's need  to  be  able  to
demonstrate  manufacturing resilience, independent  of  any
single  site  location, which had the effect  of  diverting
some  assembly  work outside the Radstone Group.   This  is
addressed  directly  by the FT Kemitron acquisition,  which
will   provide   Embedded  Computing  and  other   external
customers with a more resilient assembly and test service.

FT  Kemitron's  production  processes  have  been  assessed
against  the  requirements  of the  CEM's  target  customer
profile, (including those of Embedded Computing).

Necessary  changes  have  been  initiated,  including   the
introduction  of new processes and capital equipment  items
which will enable the plant to operate as an alternative to
the  Towcester facility. No significant Embedded  Computing
manufacturing activity took place at FT Kemitron during the
period reported here.

Increasing  UK  price competition was a  recurring  feature
throughout  the  year,  especially in  the  low  to  medium
complexity  product area where several small  UK  operators
have  recently entered the market. While the  division  has
relatively   few   customers  in  this   area,   oversupply
conditions  at the low end of the market tended to  depress
margins  generally,  even for high-end  specialist  service
providers.  Furthermore, additional investment in logistics
management to support the enlarged organisation has  had  a
short-term negative effect on margins.

Margin  percentages were affected by the  general  tendency
for the larger customers to cease operating on a free-issue
materials  basis at the time of transition to larger  scale
production.    The  margins  available  on   the   material
procurement element of such orders resulted in a  reduction
in  the overall margin percentages.  Several major projects
came  within this category during the year, resulting in  a
rapid  increase  in  the value of the externally  purchased
materials from £2.5m in 1999 to £5.3m, (+113.1%), including
£1.0m at FT Kemitron.

These changes coincided with an uncertain period for the UK
component  distribution industry, with growing  lead  times
and   problems   of  accelerating  obsolescence   affecting
components of every kind.

In these circumstances, the Group's direct access to the US
distribution system via the Montvale procurement office has
been a valuable differentiator, frequently enabling it to
maintain lead times and preserve margins in the face of
aggressive UK competition.

Geographical Analysis of Operations
Sales
UK home shipments increased by 57.0%, aided by £1,593,000
of new business arising from the FT Kemitron acquisition.
On a like-for-like basis, the yearly increase was 36.1%,
(£7,616,000 to £10,366,000).

CEM had no significant export sales in the period.

Embedded Computing's UK sales increased by 39.0%, (from
£2,661,000 to £3,698,000), mainly as the result of PowerPC
board and systems sales to UK Ministry of Defence and its
major UK subcontractors.

A strong increase in shipments to naval programmes
contributed to an overall sales growth of 56.6% in the
other European territories.

US deliveries in the year were £12,989,000.  Active
production programmes included MLRS, via Harris Corporation
and a range of boxed system products for use in NASA
programmes, including the X-38 Crew Recovery Vehicle and
the International Space Station.

Substantial quantities of board-level PowerPC and Octegra
graphics products were delivered to other prime contractors
to the US Department of Defense.  New production contracts
included a helicopter sonar system utilising the Vantegra
DSP processor.

Orders
The record level of new orders in the year owed much to the
US direct sales team, which more than doubled last year's
record bookings figure. Total US bookings in the year
exceeded £34m, making up 66% of the Radstone Group total.

Production orders were received from Northrop Grumman,
(£1.47m), Lockheed Martin Federal Systems, (£6.3m) and
Harris Corporation, (£12.3m).

As in previous years, these include situations where
deliveries will be phased over periods of time extending
beyond the current budget year.

Outside the US, good progress was made in Singapore, Korea
and in mainland Europe, as well as in the UK home
territory.

In the UK, Singapore and Korea the level of integrated
systems orders was high, reflecting the many product
improvements of the last two years and the sharper
marketing focus which has resulted from the establishment
of a dedicated systems product group in 1998.

In the UK and in southern Europe, important design wins
were achieved for the Vantegra DSP product family.
Vantegra is now designed into a range of naval radar and
sonar applications where the product's unique combination
of ruggedness and functionality offer compelling advantages
to the system integrator.

Financial Overview
Group sales increased by 24% to £30,163,000 and, as in
previous years, were weighted towards the second half-year.
Excluding the acquisition, 56% of deliveries were in the
second half of the year compared to 58% last year.

Gross profits improved to 41.3% from last year's 40.5%.
The Embedded Computing business gross profits improved from
40.2% to 48.3%, as increasing quantities of the higher
margin rugged products were delivered into production
programmes.

Expenditure on development, sales, marketing and
administration increased by £1,652,000 compared to last
year.  With gross profit improving by £2,659,000, the
resultant operating profit (excluding goodwill amortisation
and the exceptional item from the previous year) increased
by £1,007,000 to £3,033,000.  This represented an operating
profit of 10.1% of sales, compared to 8.4% last year.

Interest costs of £310,000 were £37,000 less than last
year.  Approximately £45,000 of the interest costs were
attributable to the debt financing on the purchase and
early trading of the recent FT Kemitron acquisition.

The tax charge of £262,000 represented 10% of the pre-tax
profit compared to 21% in 1999 (15% at the pre-exceptional
level).  This result consumes all of the tax losses from
prior years and therefore the result for 2001 will return
to a full tax charge.

The basic earnings per share (FRS3), were 10.89p (1999:
4.38p). The normalised earnings per share were 11.17p, a
66% increase compared to last year.

Acquisition
The business and assets of Kemitron Manufacturing were
acquired for a consideration of £3,500,000, financed partly
by the placing of 2,126,916 ordinary shares with financial
institutions at 122p per share.  The balance of the
consideration and short term working capital requirements
were financed by new bank debt.

Cash flow
Cash flow from operating activities was £2,407,000 compared
to £1,343,000 last year, a result of the strong trading
performance during the year.  After net interest and tax
payments of £206,000 and £326,000 respectively, most of the
remaining funds generated were invested in various capital
projects totalling £1,980,000.

The acquisition costs of £3,500,000 and assumed debt of
£1,984,000 (bank debt and finance leases), were met by
£2,387,000 from new shares issued in a placing together
with a £3,097,000 increase in debt.  This was the main
reason for an increase in net debt from £3,122,000 to
£6,601,000.

Investment
During the year a net £1,980,000 was invested in capital
equipment compared with £1,130,000 spent last year.  Two
items comprised a major part of the increase, the first was
the investment in an Enterprise Resource Planning (ERP)
system supplied by SAP.  The project to implement the ERP
system began in December and is led by a senior member of
the management team.  Good progress is being made and the
system is expected to go live in the fourth quarter of the
calendar year 2000.  The second item was the purchase of a
GenRad TS121 automatic test system, providing the CEM
business with a major advance in test capability and
capacity.

Company-funded development expenditure amounted to £
2,981,000 (1999: £2,342,000), representing 9.9% of sales
(1999: 9.7%).  Consistent with the Group's established
policy, all product development was charged directly to the
profit and loss account.

Liquidity
Gearing at the year-end increased to 53%, (31 March 1999:
41%), compared to 35% at the half year, due to the
acquisition debt.  Current and quick ratios were 1.9 and
1.0 respectively compared to 1.7 and 1.0 at 31 March 1999.
Interest was covered a comfortable 9.8 times compared to
5.8 times last year.

Performance
Normalised earnings per share, (see calculation in note 1),
which is more indicative of underlying performance, grew by
66% from 6.73p last year, (restated to take account of the
new shares issued for the acquisition), to 11.17p.

The dilutive effect of the recent acquisition resulted in a
short-term reduction in the return on capital employed,
from 19.0% to 16.0%.  Excluding this effect the return on
capital employed for the rest of the Group was 20.7%.

Return on equity was 19.4% compared to 18.9% last year.

Outlook
The Radstone Group enters the new year in the strongest
position in the Company's history.  With both core
businesses now firmly established in positions of market
leadership, we are confident of further progress in the
year ahead.

For further information please contact:

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

Beeson Gregory Ltd.
Julia Henderson                              0207 488 4040

Square Mile Communications Ltd.
Stephanie Smart                              0207 601 1000


CONSOLIDATED PROFIT & LOSS ACCOUNT
for the year ended 31 March 2000

                          Notes  Excluding Acquisition     2000        1999
                               acquisition                £'000       £'000


Turnover                            28,570      1,593    30,163      24,242
Cost of sales                      (15,961)    (1,731)  (17,692)    (14,430)
------------------------------------------------------------------------------

Gross profit                        12,609       (138)   12,471       9,812
Development costs                   (2,981)         -    (2,981)     (2,342)
Sales and marketing costs           (3,992)      (183)   (4,175)     (3,784)

Administration costs                (2,282)         -    (2,282)     (1,660)
Administration cost-goodwill             -        (62)      (62)          -
Administration 
 cost-exceptional item                   -          -         -        (500)
------------------------------------------------------------------------------
Operating profit on ordinary
activities before interest           3,354       (383)    2,971       1,526
Net interest payable                                       (310)       (347)
------------------------------------------------------------------------------
Profit on ordinary activities
before taxation                                           2,661       1,179

Taxation                                                   (262)       (250)
------------------------------------------------------------------------------
Retained profit for the 
financial period                                          2,399         929
==============================================================================
                                                                  as restated
                                                                  (see note 1)
Basic earnings per share        1                         10.89p       4.38p
==============================================================================
Normalised earnings per share   1                         11.17p       6.73p
==============================================================================
Diluted earnings per share      1                         10.85p       4.37p
==============================================================================


Statement of total recognised gains and losses
                                          £'000     £'000

Profit for the financial year             2,399       929
Currency translation differences
 on foreign currency net investments          -       (28)
------------------------------------------------------------------------------
Total recognised profit relating 
 to the year                              2,399       901
==============================================================================
There  is  no  material difference between  the  profit  on
ordinary activities before taxation and the retained profit
for  the  year  stated  above, and  their  historical  cost
equivalents.

Turnover and operating profit during the year arose totally
from  continuing operations within the meaning of Financial
Reporting Standard 3.


BALANCE SHEET
at 31 March 2000
                                     Group             Company
                                 2000     1999       2000    1999
                               £'000      £'000    £'000     £'000
Fixed assets
Goodwill                       3,650          -        -         -
Intangible assets                 30         29       30        29
------------------------------------------------------------------------------
Total intangible assets        3,680         29       30        29
------------------------------------------------------------------------------
Tangible assets                5,487      3,460    1,588     2,562
Investments                        -          -    6,865       258
------------------------------------------------------------------------------
                               9,167      3,489    8,483     2,849
------------------------------------------------------------------------------
Current assets
Stocks                         7,976      6,013        -     5,029
Debtors                        8,413      7,192    6,078     3,155
Cash at bank and in hand         778      1,251      125     1,132
------------------------------------------------------------------------------
                              17,167     14,456    6,203     9,316
Creditors: amounts falling due
 within one year
Bank and other borrowings      2,550      2,295        -       681
Other creditors                6,574      6,004      783     4,419
------------------------------------------------------------------------------
                               9,124      8,299      783     5,100
------------------------------------------------------------------------------
Net current assets             8,043      6,157    5,420     4,216
------------------------------------------------------------------------------
Total assets less 
 current liabilities          17,210      9,646   13,903     7,065

Creditors: amounts falling 
 due after more than one year
Bank and other borrowings      4,829      2,078    5,189     1,459
Provisions for liabilities
 and charges                      35          8        -         -
------------------------------------------------------------------------------
                               4,864      2,086    5,189     1,459
------------------------------------------------------------------------------
Net assets                    12,346      7,560    8,714     5,606
==============================================================================
Capital and reserves
Called up share capital        2,925      2,659    2,925     2,659
Share premium account          9,362      7,241    9,362     7,241
Revaluation reserve              218        218      218       218
Profit and loss account         (159)    (2,558)  (3,791)   (4,512)
------------------------------------------------------------------------------
Equity shareholders' funds    12,346      7,560    8,714     5,606
==============================================================================


CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2000
                                                  2000       1999
                                                 £'000      £'000
Operating activities
Net cash inflow from operating activities        2,407      1,343
==============================================================================
Servicing of finance
Interest received                                   43         31
Interest paid                                     (160)      (331)
Interest paid on finance leases                    (89)       (38)
------------------------------------------------------------------------------
                                                  (206)      (338)
==============================================================================
Taxation
UK Corporation tax paid                           (322)         -
Overseas tax paid                                   (4)       (50)
Overseas tax recovered                               -         42
------------------------------------------------------------------------------
                                                  (326)        (8)
==============================================================================
Capital expenditure
Purchase of tangible fixed assets                 (969)      (603)
Purchase of intangible fixed assets                (27)         -
------------------------------------------------------------------------------
                                                  (996)      (603)
==============================================================================
Acquisitions
Purchase of subsidiary undertaking              (5,178)         -
------------------------------------------------------------------------------
Net cash outflow for acquisitions               (5,178)         -
==============================================================================
Equity dividends paid                                -          -
==============================================================================
Net cash (outflow)/inflow before financing      (4,299)       394
==============================================================================
Financing
Placing                                          2,387        304
Rights Issue                                         -      1,839
------------------------------------------------------------------------------
                                                 2,387      2,143
------------------------------------------------------------------------------
New loans                                        2,500          -
Repayment of loans                                (497)      (380)
Payment of principal under finance leases         (254)      (166)
------------------------------------------------------------------------------
                                                 1,749       (546)
------------------------------------------------------------------------------
                                                 4,136      1,597
==============================================================================
(Decrease)/Increase in cash in the year           (163)     1,991
==============================================================================


Note to the Consolidated Cash Flow Statement
Reconciliation of operating profit to net cash
inflow from operating activities

Operating profit                                 2,971     1,526
Amortisation of goodwill                            62         -
Amortisation of intangible fixed assets             26        26
Depreciation of tangible fixed assets              980       821
Loss on disposal of tangible fixed assets           41         -
Increase in stocks                              (1,245)     (213)
Decrease/(Increase) in debtors                     137    (1,854)
(Decrease)/Increase in creditors                  (592)    1,037
Increase in provision for liabilities and charges   27         -
------------------------------------------------------------------------------
Net cash inflow from operating activities        2,407     1,343
==============================================================================

Notes:

1.   Earnings per share

     Prior year earnings per share calculations reflect the
     bonus element of the Placing during the year.

(a)  Basic earnings per share

     Basic earnings per ordinary share are calculated from
     the following ratio:

                                            2000        1999

     Profit on ordinary activities
      after taxation                  £2,399,000    £929,000
     Average number of shares         ----------    -------- 
      in issue                        22,032,581  21,227,696

(b)  Normalised earnings per share

The calculation uses the same number of shares in issue as
for basic earnings per share but uses an adjusted profit
figure as the numerator of the ratio, to eliminate the
effect of the amortisation of goodwill and the exceptional
item which is more indicative of underlying performance.
It may be reconciled to basic earnings per share as
follows:

                                             2000       1999
                                            pence      pence
                                        per share  per share

Basic earnings per share                    10.89       4.38
Add:  Exceptional restructuring costs           -       2.35
      :   Goodwill written off               0.28          -
------------------------------------------------------------------------------
Normalised earnings per share               11.17       6.73
------------------------------------------------------------------------------

(c)  Diluted earnings per share

Diluted earnings per share are disclosed in accordance with
the requirements of FRS14 - Earnings per share, and are
calculated from the following ratio:

                                           2000       1999

Profit on ordinary activities
 after taxation                      £2,399,000   £929,000
                                     ----------   --------
Average number of shares 
 including outstanding options       22,110,792 21,264,200

The difference in the average number of shares in issue
used as the denominator of the calculation for the basic
and diluted earnings per share is due to the premium
element of share options still outstanding at the end of
each financial period, based on the average mid-market
share price during that year.  The adjustment to the number
of shares is:

                                           2000        1999
                                            No.         No.

Premium element of share options based
 on average mid-market share price 
 during the year                         78,211      36,504


                                           2000       1999
                                          pence      pence
                                      per share  per share

Basic earnings per share                  10.89       4.38
------------------------------------------------------------------------------
Normalised earnings per share             11.17       6.73
------------------------------------------------------------------------------
Diluted earnings per share                10.85       4.37
------------------------------------------------------------------------------

2.   The comparative figures for the year to 31st March
     1999 do not constitute full accounts within the
     meaning of section 240 of the Companies Act 1985.
     Full accounts for that period, which received an
     unqualified audit report and did not contain a
     statement under section 237(2) or Section 237(3) of
     the Companies Act 1985, have been delivered to the
     Registrar of Companies.  The financial information set
     out in the preliminary statement of results for the
     year ended 31 March 2000 does not constitute statutory
     accounts within section 240 of the Companies Act 1985.
     The group's statutory accounts for the year ended 31
     March 2000 have not yet been filed with the Registrar
     of Companies.  The Company's auditors have issued an
     unqualified report on those financial statements.
     Their report contains no statement under Section
     237(2) or Section 237(3) of the Companies Act 1985.

3.   This preliminary announcement is prepared on the basis
     of the accounting policies as stated in the financial
     statements for the year ended 31 March 1999, except
     for the implementation of FRS15.  The transitional
     arrangements of FRS15 have been adopted with land and
     buildings being held at modified historic cost and as
     a result there has been no impact of this change on
     the financial statements for the current or prior
     year. FRS16 is effective for the first time this year
     and has no effect on the financial statements.

4.   Copies of the 2000 Report and Accounts will be sent to
     shareholders in due course.  Further copies will be
     available from the registered office of Radstone
     Technology PLC, Water Lane, Towcester, Northants NN12
     6JN.