RNS No 4647d
KBC ADVANCED TECHNOLOGIES PLC
8 June 1999

                 KBC Advanced Technologies plc
                            ("KBC")
                               
                        Trading Update
            Licensing Agreement with AEA Technology
                     and Sale of Sigmafine

Trading Update
As the global oil and gas industry continues to restructure to
face  the challenges of a sustained low oil price environment,
trading  conditions remain difficult for KBC.   In particular,
KBC, like many other suppliers of products and services to the
industry,  is experiencing longer sales lead times and a  more
competitive  market environment.

In  response to this harsh market environment, KBC  has  taken
steps to ensure that it is able to make material and immediate
reductions  to the cost base.  During the second  quarter  KBC
has   reduced   staff  levels   by  10  per  cent  through   a
redundancy programme.  This was completed in April  and  the
full  costs  have been charged  to  the profit and loss account, 
with the full benefit being delivered in  the second half.  
These staff reductions have been targeted  to ensure that the 
long-term growth potential of the business  is not  affected.  
In areas such as Continuing Services which are still demonstrating 
strong growth, recruitment will continue.

In  addition  to  active management of the cost  base, KBC
continues to develop its core consulting services to   further
differentiate  them  from  those  services  offered  by  other
competitors in the market.  Notwithstanding the
corrective  actions taken, it is expected that  profit from 
continuing operations for both the half year and  the  full  year 
will be significantly  below  the  levels realised during 1998.

Software Licensing Agreement with AEA Technology
KBC  is  pleased  to  report  that  the  two  software-related
transactions  announced in December 1998 and March  1999  have
now been finalised.

This   licensing   arrangement  marks  a  material   step   in
repositioning KBC's business to focus on the core strength  of
its consulting and proprietary process technology, rather than
the software "wrapper" in which the technology resides.

A   definitive  agreement  has  now  been  reached  with   AEA
Technology  plc  to  cross-license  certain  technologies  and
jointly develop and market software products including:

  A  new  version of Petrofine, KBC's proprietary software
  tool, embedded in the HYSYS flowsheeting environment, for use
  by  KBC's consultants.  This will enhance the efficiency  of
  KBC's consultants in executing Profit Improvement Programmes.

  A new simulation product to be developed jointly for use
  by  refiners in refinery analysis and optimisation  studies.
  This will be marketed by AEA Technology, with KBC receiving a
  royalty stream.

Sale of Sigmafine
In  addition,  KBC  has now concluded an  agreement  with  OSI
Software, Inc. ("OSI"), a private US company, for the sale  of
KBC's  Sigmafine mass balance, data reconciliation  and  yield
accounting  technology.  Having reviewed  the  original  joint
licensing  proposal, both parties concluded that it  would  be
more effective to sell the Sigmafine business.  The Sigmafine
product  is  peripheral to KBC's consulting  business  and  is
generally sold as an entirely stand-alone product, rather than
as  part  of KBC's Profit Improvement and Continuing  Services
Programmes.   KBC  will,  however, retain  a  license  to  use
Sigmafine in its consulting practice.

The  sale  of  Sigmafine  to OSI includes  current  contracts,
trademarks  and  the intellectual property of Sigmafine.   The
consideration payable in cash by OSI is US$5 million plus  the
book  value  of  the assets transferred, principally  work  in
progress,  amounting to US$0.2 million.  The  contribution  of
Sigmafine  to  KBC's  profits in 1998 was  US$0.4  million  on
revenues of US$4.2 million.  The 19 KBC staff members  working
on  Sigmafine  will  transfer to OSI with immediate  effect.
The  proceeds  will be retained by KBC to fund  the  continued
development of the business.

Michael  Press, Executive Chairman, KBC Advanced  Technologies
plc  commented: "We are pleased to announce the completion  of
the  two software transactions which will ensure that  KBC  is
able to focus on further developing its consulting base.   The
agreement  with  AEA  Technology  provides  new  products  and
ensures that the tools used by our consultants are up to date.

Although  we  are disappointed with the current year's  market
outlook  we  continue  to  believe  that  KBC  is  very   well
positioned to respond to the industry environment our  clients
are  facing.  We will continue to be proactive and  innovative
in  modifying  our consultancy offerings to suit our  clients'
needs."
                               
Enquiries:

KBC Advanced Technologies plc                     01932 856622
Michael W Press, Executive Chairman
Wayne P C Hutchinson, Chief Operating Officer
Iain P McIntosh, Finance Director

Square Mile Communications                       0171 601 1000
Tim Jackaman/Kirsty Hall

Notes  to Editors: KBC Advanced Technologies plc is a  leading
independent  process engineering group, providing  specialised
consultancy  and  support services to enable oil  refiners  to
improve operational efficiency and profitability.  Through its
Profit  Improvement Programme KBC analyses refinery operations
and  recommends  changes that deliver material and  measurable
improvements  in  profitability.  KBC has a  broad  spread  of
clients  ranging from large integrated oil companies to  small
independent refiners.


END

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