NTY Network Tech.

RNS No 9422d
NETWORK TECHNOLOGY PLC
1st February 1999

                    NETWORK TECHNOLOGY PLC
                               
                         AGM Statement
 Trading update for the first quarter ended 31st December 1998

The  Chairman of Network Technology PLC, Graham Woodhead, will
today  make  the  following trading statement  for  the  first
quarter to 31st December 1998 at the Annual General Meeting of
the Company.

"In  my  annual  statement  made on  1st  December  1998,  and
included in the Annual Report before you today, I outlined how
trading  in  the  second half of the year  had  been  severely
affected  by  the  weakness in the Far East  markets,  and  in
particular Japan, our largest market."

"These  market  conditions continue to  affect  sales  of  our
traditional  printserver products.  This,  combined  with  the
change in accounting policy introduced at the year end whereby
all  research and development is now written off in the period
incurred,  mean that it is unlikely that we will  be  able  to
achieve a profit for the first six months of the year."

"Our   response  to  this  downturn  has  been  to  accelerate
completion of new products so that they can be brought to  the
market  at  the earliest possible date.  This has resulted  in
significant  investment  in  research  and  development.   One
particular example of this is the data storage server product.
Since  its acquisition, we have further developed the hardware
and  designed and developed the associated operating  software
of  the product.  We now have an NT and UNIX based HSM system,
which  is  totally scalable to an organisation's  storage  and
archiving requirements and is capable of handling 150  CDs  to
100,000 CDs or more."

"On  another  positive note, sales from our range of  Ringdale
products  continue  to  increase,  further  strengthening  the
Ringdale brand name within the industry.  We are encouraged by
a  number  of products that address the increasingly important
Internet market, including the Plug-On. printserver which  can
directly  receive  Internet  e-mail  and  Internet  faxes  and
Ringdale's   Internet  Printing  System   Plus   (IPS),   that
complement   and  extend  our  existing  range  of  networking
products."

"Although it is too early to predict an outcome for  the  full
year, the steps that we have taken over the last two years  to
broaden   and   enhance   our  product   range   should   give
encouragement for an improved performance in the second half."

For further information:

Klaus Bollmann
Chief Executive, Network Technology
Tel:  01444 870 408

Lulu Bridges / William Cooper
Tavistock Communications
Tel:  0171 600 2288

END

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