RNS No 2432q
NETWORK TECHNOLOGY PLC
12th October 1998
                               
                      Network Technology
                               
                 Fourth Quarter Trading Update

                                             12th October 1998

Network  Technology PLC ("Network"), the network  connectivity
and   software  specialist,  has  today  announced  a  trading
statement  in  respect  of  its  fourth  quarter  ended   30th
September 1998.

Commenting on current trading conditions Klaus Bollmann, Chief
Executive said, "Since our third quarter trading statement, we
have  continued  to see further evidence of  a  slow  down  in
demand  for our printserver products, particularly as a result
of  de-stocking in the Far East, our largest market.  Although
these  customers  supply  the  global  marketplace,  they  are
undoubtedly  being affected by the economic  uncertainty  that
continues to be evident in the Far East."

"We  have continued to trade profitably throughout the  second
half,  however, the continued uncertainty has had  a  slightly
greater  effect  on our anticipated fourth  quarter  sales  of
printservers.   Although  our  financial  year  is  only  just
complete, early indications are that the results for the  full
year will fall short of current market expectations."

"Despite  the difficulties in some of our markets, we continue
to  maintain  our  investment in research and  development  in
order to broaden and strengthen our product range.  We have  a
successful record in bringing innovative new products  to  the
market and gaining a significant market share."

"We  are  optimistic about the prospects for our new products,
which  include data storage devices and network  printing  and
management  software.   We  remain  confident  that   we   can
establish a strong market presence in their respective markets
which  will  enable  us  to  reduce our  dependence  upon  the
computer  hardware  printing market.  I hope  to  be  able  to
report  further progress in these areas when we  announce  our
preliminary results in November."

For further information:

Klaus Bollmann                  Lulu Bridges
Paul Cottrell                   Tavistock Communications
Network Technology PLC          Tel:  0171 600 2288
Tel:  01444 870408              

END

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