NTY Network Tech.

RNS No 2968r
NETWORK TECHNOLOGY PLC
5th August 1997

  Network Technology PLC ("Network Technology", "the Group" or "the Company")
                                       
                      #5.5 million Placing and Open Offer
                        by Singer & Friedlander Limited
                                      and
                        Admission to the Official List

Introduction

Network Technology PLC, the AIM quoted network connectivity specialist, today
announced a #5.5 million Placing and Open Offer and its application for
Admission to the Official List of The London Stock Exchange. At the issue
price of 158 pence per share, the Company is capitalised at approximately #56
million. It is expected that admission to the Official List will become
effective and that dealings will commence on 28 August 1997.

The Placing and Open Offer has been fully underwritten by Singer & Friedlander
Limited which is also acting as financial adviser and sponsor to the Company.
Burrough Johnstone Limited is acting as stockbroker.

Information on Network Technology

The Group is engaged in the design, manufacture and marketing of hardware,
firmware, integrated circuits and software used to connect computer associated
equipment in the modern business and domestic environment, (such as PCs,
workstations, printers, scanners, fax and vending machines) to LANs, WANs and
the Internet.

Printservers based on Ethernet technology currently constitute the Group's
core products, representing approximately 84 per cent of the Group's sales in
the six months to 31 March 1997 with the Group's recently developed products
accounting for the remaining 16 per cent.  In order to develop further its
market position and to reduce dependence on its current core products the
Group continues to develop new networking products such as printservers and
HUBs using new, faster 100base Ethernet technology, network management
software and technology licensing.  The Directors believe that these new
products should provide the Group with further opportunities for growth.

HBM, the principal subsidiary of the Company, was co-founded by Hanne and
Klaus Bollmann in 1985 in order to develop and market emerging printer
technology.  The shares of Network Technology have been traded on the
Alternative Investment Market since July 1996.

The Placing and Open Offer

No shares are being placed on behalf of the Directors or any other existing
shareholders.  The Placing and Open Offer will raise approximately #4.75
million, net of expenses, to provide additional working capital which the
Directors believe will enhance the ability of the Group to take advantage of
opportunities for growth whilst retaining a strong balance sheet.

Singer & Friedlander has conditionally agreed, as agent for Network
Technology, to procure subscribers or failing which, itself to subscribe as
principal at 158p per share for the 3,481,000 New Ordinary Shares to be issued
pursuant to the Placing and Open Offer. Of these New Ordinary Shares 1,342,644
New Ordinary Shares have been placed firm with institutional and other
investors. The balance of 2,138,356 New Ordinary Shares have been placed
subject to clawback to satisfy valid applications from Qualifying Shareholders
under the Open Offer. Of the 2,138,356 New Ordinary Shares which are subject
to clawback, the Directors, in order to ensure that a sufficient proportion of
the Company's shares are in public hands, have undertaken not to take up any
part of their entitlement to a maximum of 1,180,356 New Ordinary Shares.
Accordingly, a balance of 958,000 New Ordinary Shares will be available to
Qualifying Shareholders under the Open Offer.

Those Qualifying Shareholders who wish to subscribe for New Ordinary Shares
are being given the opportunity to do so through the Open Offer. Accordingly,
Qualifying Shareholders are invited to apply for any whole number of New
Ordinary Shares up to their pro rata entitlement on the following basis:

     1 New Ordinary Share for every 15.047385 Existing Ordinary Shares

held by them on 29 July 1997, being the record date.

Fractional entitlements to apply for New Ordinary Shares will be rounded down
to the nearest whole New Ordinary Share. The New Ordinary Shares to be issued
will be allotted fully paid up and will rank pari passu in all respects with
the Existing Ordinary Shares and will be issued free from all liens, charges
and encumbrances.

Full details of the Placing and Open Offer are contained in the Prospectus and
the accompanying Application Form which will be posted to shareholders today.
Application forms are personal to shareholders and may not be transferred
except to satisfy bona fide market claims.

Copies of this announcement are available for collection for a period of 14
days from the offices of Singer & Friedlander Limited, 21 New Street,
Bishopsgate, London EC2M 4HR.

Enquiries:

Klaus Bollmann
Network Technology                             01444 870408

Brendan Russell
Singer & Friedlander Limited                  0171 623 3000

Leo Cavendish
Bankside Consultants                          0171 220 7477

Issue statistics

Issue Price                                                       158p

Number of Ordinary Shares in issue following                35,657,666
the Placing and Open Offer

Market capitalisation at the Issue Price                 #56.3 million

Number of New Ordinary Shares being issued by the Company   3 ,481,000

Percentage of enlarged ordinary share capital being  
issued by the Company                                     9.8 per cent.

Net amount, after flotation expenses, being raised for
the Company                                               #4.8 million

Price earnings multiple at the Issue Price based on
he earnings per Ordinary Share for the year ended
30 September 1996                                           16.9 times

Timetable of principal events:

                                                1997
                                                
Record date for Open Offer                      29 July

Latest time and date for the splitting of       3.00 pm on 22
Application Forms (to satisfy bona fide market  August
claims only)

Latest time and date for receipt of completed   3.00 pm on 27
Application Forms                               August
and payment in full under the Open Offer

Dealings in the New Ordinary Shares are         8.30 am on 28
expected to commence                            August

Despatch of definitive share certificates for   1 September
New Ordinary Shares
                                                


END

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