ACN Advance Capital

RNS No 1112v
ACORN GROUP PLC
17th September 1998

                               ACORN GROUP plc                                

         RESULT OF STRATEGIC REVIEW AND IMPLEMENTATION OF FUNDAMENTAL         
                           RESTRUCTURING PROGRAMME                            


Acorn Group plc, the technology design and solutions
company, today announced that following a strategic review
of its operations , it is implementing a fundamental
restructuring programme which will enable the Company to
become more focused as a digital TV and thin client
components company.  The programme will also allow Acorn to
establish key strategic alliances focusing on profitability
and growth in these markets.

In August, the Board's interim results statement reported
that the Chief Executive had been empowered to create
quickly a focused and sustainable business for the benefit
of all shareholders.  The new management team also made
clear its intention to take early steps to reduce the losses
and cash consumption in the non-ARM businesses.  This was to
be achieved through a combination of disposals, increased
focus on targeted revenue-earning activity and a related
cost reduction programme.

As a result of completing its strategic review, Acorn is
cancelling its Risc PC 2 project, and is realigning its
infrastructure and support costs so that they are
appropriate to the new company structure and size.  Acorn
will continue to supply existing desktop computer ranges,
notably the Risc PC, but it will be postponing its annual
show for the specialist market and is planning to transfer
its logistics and systems activities to Xemplar, its 50%
associate.

As part of the infrastructure realignment, Acorn will be
reducing its non-engineering staff by around two-thirds, and
will be reorganising its engineering staff onto direct
revenue-earning design and consultancy work.

The overall effect of these changes will be to reduce
Acorn's employee numbers from the current 175, to around
100.  The Company currently estimates that the total cost of
these measures will be about o1 million, inclusive of stock
provisions.

Stan Boland, Chief Executive, commented: "Today's
announcement marks a significant watershed in Acorn's
history.  Whilst we are sad to be announcing the
redundancies, we are making these important changes to
Acorn's market position and business shape to recognise that
the future of this company lies as a leading player in the
digital TV system components, and in partnership with other
technology companies.

"Acorn's ability to create very fast and powerful silicon
and software designs for some of the world's leading
companies is increasingly being acknowledged.  We are
working hard to engage successfully in this market with a
number of partners and potential partners."


For further information:

Stan Boland, Chief Executive                 01223 725000
Acorn Group Plc

Rollo Head / Sarah                     0171 329 0096
Shandwick Consultants


About Acorn
Acorn is a technology design company, with a strong market
focus on Digital interactive TV (DiTV) and Information
Appliances (IA).  Acorn offers world-class capabilities in
complete product, silicon, operating systems and software
component design.  Acorn solutions provide high levels of
functionality, the flexibility that only software can
provide, and a reduced component count.  Due to Acorn's
independent status as a design company, their technologies
can be applied in a range of applications across the
consumer electronics industry.

END

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