The MTL Instruments Group plc

Preliminary Results for the year ended 31 December 2003

MTL Instruments Group is recognised as a world leader in the development and supply of Intrinsic Safety, Process Control and Surge Protection products aimed at the process control and telecommunications industries. Many of the world's safety-critical processes are monitored, controlled or protected by MTL products and the Group is distinguished by its global network of sales and support centres and by its acknowledged position as a thought leader in this high technology marketplace.

MTL has recently developed solutions which enable process control systems to be devolved from the control room onto the process plant itself giving benefits of improved control integrity and cost savings. This has involved the combination of the Group's three core technologies - Intrinsic Safety, Surge Protection and Open Control Platforms.

* Profit on ordinary activities before taxation and before goodwill amortisation of £1.1m (2002: £1.1m) and exceptional items of £nil (2002: £1m), but after finance costs of £0.2m (2002: £0.3m)

Highlights

• Balance sheet strength: strong
• Net cash inflow from operating activities of £6.9m, 53% ahead of 2002 achieved through improved profitability and rigorous attention to working capital
• Net debt reduced by £4.6m in 2003, ending the year at £0.6m
• Outstanding year for core Hazardous Area business
• Return on investment in Fieldbus products produced excellent result: sales grew to £4.5m from £2.5m in 2002, an increase of 80%
• MOST division saw encouraging uptake of the Matrix control platform during the year

Malcolm Coster, Chairman of The MTL Instruments Group plc, commented: "We are confident that we will continue to be a leader in our core Hazardous Area business and expect to make further progress in the market place as the adoption of Fieldbus technology increases. The continued growth of our MOST business will be fuelled by the acceptance of our new control platform which, continues to increase across many markets. The Surge business started to improve in the fourth quarter of 2003 and is expected to return to good growth in 2004.

Our technology leadership, continued improvements in sales effectiveness and strong cash generation give us confidence about the future prospects of the company".

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For Further Information:
Graeme Philp 01582 407250
Chief Executive, The MTL Instruments Group plc

Terry Garrett / Rachel Taylor 020 7067 0700
Weber Shandwick Square Mile