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Oxford Instruments (OXIG)

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Friday 03 October, 2003

Oxford Instruments

Acquisition

Oxford Instruments PLC
03 October 2003

3 October 2003


Oxford Instruments plc adds to its Analytical business


Oxford Instruments plc ("Oxford Instruments"), the advanced instrumentation
company, announces today that its wholly owned subsidiary, Oxford Instruments
Plasma Technology, has acquired the assets of Thermo VG Semicon ("VG Semicon"),
a leading supplier of Molecular Beam Epitaxy (MBE) equipment.  MBE technology is
used in a variety of design and manufacturing processes including the mass
production of electronic devices for the latest generation of mobile and
cellular telephones.


Oxford Instruments is paying a cash consideration of US$0.3m upon completion
plus a deferred consideration of US$0.2m payable in two equal instalments on the
first and second anniversaries of completion.  Further contingent payments may
also be made in 2005 and 2006, if exceptional sales growth targets are met,
taking the maximum consideration to US$1.3m.


In the six months to 28 June 2003, VG Semicon reported sales of US$4.0m and a
break even operating result before restructuring costs.  A cost-reduction
programme at VG Semicon has already taken place earlier this year and the
priority now is to increase the depth of management in the business and make
appropriate use of the many complementary operational strengths in Oxford
Instruments.  The acquisition is expected to be earnings enhancing in the
current financial year.



VG Semicon has been an innovative force in MBE since its introduction as a
research tool in the 1970s.  In partnership with its key customers, it has
driven the major technological developments that have seen MBE move from a
research tool to a fully-fledged production technology. The company's V100 is
the most widely used MBE system worldwide for the mass production of advanced,
gallium arsenide-based electronic devices, which are extensively employed as
low-noise amplifiers and switches in the latest generation of mobile and
cellular telephones.  It has more than 150 of its V80H research systems
installed worldwide and its recently launched EpiStar CV200 technology is
enabling the production of the latest generation of advanced semiconductors.



VG Semicon has earned an international reputation for the design and manufacture
of high performance, high reliability process systems and offers a wealth of
experience to assist its customers in the achievement of their goals.  Earlier
this year, the company received the Queen's Award for Enterprise in the category
Innovation for its V100 MBE system.



Jim Hutchins, Managing Director of Oxford Instruments Plasma Technology
commented:  "We are delighted with the acquisition of VG Semicon.  We had
previously identified MBE technology as an area that would offer an excellent
strategic fit with our existing business.  VG Semicon is also a recognised
leader in its field and we believe we can achieve significant synergies in
manufacturing, product development and sales and support operations,
particularly since we already serve many of the same customers.  We look forward
to reaffirming its number one position in the market place."


Enquiries:


Oxford Instruments plc                                        01865 881437
Andrew Mackintosh, Chief Executive
Martin Lamaison, Finance Director

Hogarth Partnership Limited                                   020 7357 9477
Rachel Hirst
Andrew Jaques




Notes to editors



Oxford Instruments plc

Oxford Instruments is a global leader in advanced instrumentation.  It is a
recognised world leader in several technologies, including the application of
superconductivity, the creation of low temperatures, the production and
detection of X-rays and in neurological measurements.  The company's products
are used around the world in healthcare, semiconductor processing, scientific
research, industrial chemical analysis and quality control.  Its customers
include most of the world's major international companies as well as the leading
hospitals and research institutes.



Born out of Oxford University, with over 40 years of continuous product
development, Oxford Instruments today comprises three businesses: Medical,
Analytical and Superconductivity.





Oxford Instruments Plasma Technology

Oxford Instruments Plasma Technology, a key part of the Analytical business, was
established in 1981. The company is a leading supplier of Plasma and Ion beam
processing equipment to the Photonics, MEMS and semiconductor industries. The
Company maintains close collaborative links with both academia and industry and
is continually developing processes for new and emerging materials. Products
range from small stand-alone systems aimed at the R&D market to fully clustered
cassette-to-cassette platforms for high throughput production processing.






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