Re Contract

Radstone Technology PLC
8 May 2001

                           Radstone Technology plc

  RADSTONE TECHNOLOGY WINS EURO 14.5M, (£9M) SYSTEMS CONTRACT FOR NH90 NAVAL
                    HELICOPTER 'COMMON ACOUSTIC PROCESSOR'

Radstone Technology PLC, (LSE:RST) the world's leading independent supplier of
high-performance, rugged VME-based computer products, announces a new
contract, received in the March quarter 2001, for Euro 14.5m, (£9m) from
Whitehead Alenia Sistemi Subacquei (WASS), a Finmeccanica Company, Italy.

Radstone will supply its rugged computer technology into the Common Acoustic
Processor (CAP), for the NH90 Naval Helicopter variant, being developed by
Finmeccanica Agusta. The CAP is at the core of the helicopter's sonic
management system and is configured using Radstone's standard
Commercial-off-the-Shelf (COTS) product range.

Radstone's integrated system solution comprises a 1-ATR Long Chassis
containing its latest generation DSP, Graphics and PowerPC processors, PMC
1553, DSP gateway and I/O modules. The Radstone system, with its powerful DSP
multi-processor at its core, will simultaneously acquire, filter, transmit and
process data from both sonar and sonobuoy applications.

Radstone's fully-qualified COTS sub-system solution meets the programme's
exacting functionality and performance requirements, reducing the cost and
lead-time uncertainties associated with a custom design, which might once have
threatened this kind of system development.

The production order covers the delivery of systems over the next 4 years with
the first delivery in March this year.

The NH90 is being developed jointly by Italy, France, Germany and the
Netherlands, based on a jointly expressed requirement for an innovative naval/
tactical helicopter.

The NH90 Naval Helicopter is conceived primarily for autonomous anti-submarine
warfare and anti-surface ship warfare missions. Additional applications
include anti-air warfare support, vertical replenishment, search and rescue
and troop transport.

Commenting on the win, Radstone Group Managing Director, Dr Charles Paterson
said:

' The NH90 is the biggest helicopter development programme ever launched in
Europe. Together with our sales partner in Italy, Goma Elettronica, we are
delighted to be working with WASS on this important application, which offers
the further opportunity to strengthen a working partnership that already
extends to collaboration on the current Black Shark torpedo programme.'

About Whitehead Alenia Sistemi Subacquei, a Finmeccanica Company

Whitehead Alenia Sistemi Subacquei (WASS) is one of the world's most
experienced designers and producers of torpedoes and one of the leading
companies in the field of underwater weapon systems, sensors, surveillance and
combat systems. WASS is widely recognised for its excellence in the areas of:
system engineering for integrated systems; light and heavy weight torpedoes;
torpedo countermeasures for both surface vessels and submarines; active/
passive HM/towed sonars; underwater surveillance; tracking and noise
Measurement, and integrated anti-mine warfare.

About Radstone Technology PLC

Radstone Technology PLC is a technology company and global provider of
computer products and services at the leading-edge of the IT and electronics
industry. The Group's main business, Radstone Technology, designs and
manufactures high-performance, embedded VME-based computer products for severe
environment applications, chiefly in the industrial and defence markets.
Radstone's products are all based on leading-edge commercial technologies and
include the most innovative and rugged single board computers, digital signal
processors, graphics and imaging processors, networking and communications
modules. Foundation Technology, the Group's Contract Electronic Manufacturing
business, provides a wide range of electronic manufacturing services including
design, development and fast-track prototype build, through to component
procurement, automated assembly and test.

For more information about Radstone Technology PLC and its business, products
and services, visit the company's web site at: http://www.radstone.co.uk

Date: 8th May 2001

For further information please contact:
Radstone Tehnology PLC                         City Profile

Charles Paterson, Group Managing Director      Simon Courtenay

Jeff Perrin, Finance Director                  Ed Senior

01327 359444                                   E-mail: [e-mail]

                                               020 7726 8588