DET Deltron Elec.

RNS No 0295a
DELTRON ELECTRONICS PLC
27 September 1999



                 Deltron Electronics plc
                 Positive Trading Update

Deltron Electronics plc ("Deltron"), the Pan-European
specialist distributor and manufacturer of electromechanical
components, is pleased to confirm that the Group is enjoying
the expected improvements in its trading performance.

Outlook

The UK industrial environment is improving which, together
with the benefits of a strengthened management team (three
new Managing Directors have been appointed in the UK, France
and Sweden during 1999), new product introductions and
improved systems in its operating companies, reveals the
following:

  Sales for the five months ended 31 August 1999    +19%
  Compared to the six months ended 31 March 1999
  Sales for the five months ended 31 August 1999    +15%
  Compared to the same period last year
  Forward order book as at 31 August 1999           +18%
  Compared to 31 March 1999

Dividend Forecast

The Directors currently intend to propose a final dividend
of 1 pence per share (2.36p), payable in February 2000. This
will make a total payment for the year of 1.5p (3.54p).

Background

In May 1999, we reported that Deltron had experienced a
difficult first half resulting in a pre-tax profit of #0.219
million (1998: #1.4 million) on turnover of #17.4 million
(1998: #18.0 million) for the six months ended 31 March
1999. The two principal factors behind the poor performance
were a difficult trading environment for the Groups UK
operations, largely due to the strength of sterling, and the
decision to expand the infrastructure of the Group in
anticipation of further acquisitions.

In June 1999, we forecast that the profit before tax of the
Group for the year ending 30 September 1999 should be not
less than #1.14 million. This was stated after incurring
#0.483 million in exceptional costs, non-recurring costs
relating to restructuring and professional fees. We are
confident of delivering that forecast.

Chris Sawyer, Chief Executive of Deltron said.... "The
value of our order book, which has continued to accelerate
since the end of June, now stands at some 2.5 months of
sales. This substantial order position provides us with a
degree of visibility into the next financial year which we
look forward to with an increasing level of confidence.

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