WatchKeeper Program

Radstone Technology PLC
03 August 2006






FOR IMMEDIATE RELEASE                                         3rd August 2006



                      Radstone Technology PLC ('Radstone')


                                  Contract Win


               Thales UK Selects Radstone For Watchkeeper Program



Radstone Technology, the world's leading independent supplier of
high-performance, embedded computer products for defence and aerospace
applications, announces today that the company has been selected by Thales UK to
provide a real time data processor (RTDP) subsystem for Watchkeeper, a complete,
integrated surveillance solution for the UK's armed forces. The RTDP accepts
compressed video from the Watchkeeper unmanned aerial vehicle (UAV), processes
it and distributes it to supervisory consoles within the ground control system.


Total value of the order to Radstone is in excess of £1 million. Development
will commence immediately and deliveries will begin during 2008.


Watchkeeper is the UK Ministry of Defence's unmanned aerial vehicle program,
which will provide the UK armed forces with essential Intelligence,
Surveillance, Target Acquisition and Reconnaissance (ISTAR) capability, and will
be a key component of the UK's drive for Network Enabled Capability (NEC).

Jeff Perrin, Radstone Technology's Chief Executive, commented:


"We're delighted to receive this award from Thales UK. Radstone products are
already deployed in similarly sophisticated and demanding programs, and we were
able to demonstrate an 'off the shelf' subsystem that delivered the required
operating characteristics, shortening the development cycle and reducing program
risk.  And finally, we were able to offer a level of price/performance which
meant that Thales UK, the British Ministry of Defence and the British tax payer
received the best value for money.  We're looking forward to working with Thales
UK to ensure the success of this prestigious program."





For further information:

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|Radstone Technology               |01327-359444                           |
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|Jeff Perrin, Chief Executive      |Web: www.radstone.co.uk                |
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|Buchanan Communications           |020 7466 5000                          |
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|Tim Thompson or Nicola Cronk      |Email : [e-mail]        |
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Notes to editors:

About Radstone Technology PLC

Radstone Technology PLC is a global provider of computer products and services
at the leading edge of the IT and electronics industry.  The Group's main
business, Radstone Embedded Computing, designs and manufactures embedded
computer products for defence and aerospace applications. Radstone's products
are all based on leading-edge commercial technologies.




                      This information is provided by RNS
            The company news service from the London Stock Exchange