RNS No 5733f
NETWORK TECHNOLOGY PLC
23rd March 1999

                    Network Technology PLC
                               
               Second Quarter Trading Statement

                                               23rd March 1999

Network  Technology PLC ("Network"), the network  connectivity
and  software specialist, announces its trading statement  for
the second quarter ending 31st March 1999.

Commenting on current trading conditions Klaus Bollmann, Chief
Executive said,

"Since  our first quarter trading update announced at our  AGM
on  1st February 1999, I have to report that we have continued
to see further weakness in demand for out printserver products
in  the  Far  East  which has traditionally been  our  largest
market.  As  a result, our main customers in the  region  have
continued  to  postpone  major  orders  whilst  there  remains
uncertainty within this region.

As  stated  in February, we have responded to these  difficult
market conditions by investing in our new product areas.  I am
pleased  to report that our data storage product is  currently
on  trial  with  several  major blue chip  customers  and  the
initial feedback has been very positive. We, therefore, expect
this  part  of the business to make its first contribution  to
our  second  half  results and become more  important  to  the
growth of the Company in the long term.

However,  the necessary increased spend in this area in  terms
R&D  and marketing will have an overall detrimental effect  on
results  for  the  first half of this financial  year.   This,
coupled  with  the continuing weakness in the Far  East,  will
lead  to a loss for the period, as indicated in the Chairman's
statement at the AGM and consequently we will not meet  market
expectations.

I  am of the firm belief that this investment is necessary  to
secure  the  future of the Company by broadening  our  product
base and making us less vulnerable to the vagaries of the  Far
Eastern  markets.   I, therefore, remain  confident  that  the
action  taken  now  will  ensure we are  well  positioned  for
success in the long term."

For further information:

Klaus Bollmann                  Tom Moriarty/Peter Willetts
Network Technology PLC          Tavistock Communications
Tel: 01444 870408               Tel: 0171 600 2288




END

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