OXIG Oxford Instruments Plc

RNS Number:1590J
Oxford Instruments PLC
01 March 2005





For release at: 7.00am on 1 March 2005



             Oxford Instruments plc disposes of its Medical business

Oxford Instruments plc ("OI" or "the Group") announces today that it has sold
its Medical business ("OIM") to VIASYS Healthcare Inc, a company listed on the
New York Stock Exchange. The aggregate gross cash consideration received by OI
in respect of this disposal, including the repayment of inter company loans, is
#24 million. This disposal will allow the Group to focus its resources on the
continued growth and development of its Analytical and Superconductivity
businesses.
OIM, an international supplier of medical diagnostic and monitoring products,
made an operating profit before tax and exceptional items of #0.1 million for
the year ended 31 March 2004 (2003: operating loss of #1.3 million). The results
of OIM for the 11 months to the end of February 2005 will be shown as
discontinued operations in the Group's full year results. The net operating
assets of OIM at 31 March 2004 were #11.8 million and at the end of February
2005, are estimated to be #13 million.
The sale, after allowing for expenses and related costs but before adjusting for
goodwill of #3.7 million previously written off against reserves, will give rise
to a gain on disposal of approximately #8 million.

Use of proceeds and payment of a special dividend
The Directors of OI have declared the payment of a special dividend as a second
interim dividend of 25p per ordinary share for the year to 31 March 2005 in
order to distribute to shareholders the funds that are surplus to the resources
required by the Group to develop its business following the sale of OIM. The
special dividend will be paid on 24 March 2005 to shareholders registered at the
close of business on 11 March 2005. In respect of the special dividend, the
shares will be marked 'ex-dividend' on 9 March 2005. The interim dividend,
declared on 18 November 2004 of 2.4p per ordinary share, will also be paid on 24
March 2005.

The actuarial deficit of the Group's UK defined benefit pension scheme at the
last actuarial valuation, carried out at 31 March 2003, amounted to #22 million.
The scheme has been closed to new members since 2001 and a long term plan is in
place to recover this deficit over the remaining average working life of its
active members. After discussion with the scheme's actuary and trustees, the
Directors intend to make a special contribution of #6 million to the pension
scheme. The deficit funding position will be reviewed again after the next
actuarial review at 31 March 2006.

The balance of the consideration received will be used to reorganise those
activities which will no longer be necessary following the reduction in size and
complexity of the Group, to complete the changes described below and to continue
the development of the Analytical and Superconductivity businesses.

Analytical reorganisation

Plasma Technology has decided to close its manufacturing facility at East
Grinstead and move this activity to its main factory at Yatton. The acquisition
of the VG Semicon business in 2003, which operated from East Grinstead, has been
successful and the business has made a significant contribution to Plasma
Technology's performance. This progress has encouraged today's decision to seek
further benefits by the integration of its MBE, Plasma and Ion Beam products at
Yatton.

Superconductivity reorganisation

In June 2004 the Superconductivity business reorganised its business into three
market facing product groups. Further changes are now being made to these groups
to improve their operating performance and to reduce overhead cost.

These changes will be implemented immediately and an exceptional charge of up to
#3 million will be taken in the current year's accounts against these
reorganisations.


Nigel Keen, Chairman of Oxford Instruments plc, said: "The disposal of OIM is
consistent with our strategy of focusing our business into those areas where we
have significant market positions and capabilities. The disposal will enable us
to focus our strategy and resources on the continued growth and development of
our strong and successful Analytical and Superconductivity operations to deliver
value to our shareholders. Under its new ownership, OIM will be better placed to
take advantage of wider opportunities in the medical equipment market.

The focusing of our business also gives us the opportunity of making other
organisational changes which will lead to increased efficiency and reduced costs
for future years."


Enquiries: 

Oxford Instruments plc
Nigel Keen, Chairman
Martin Lamaison, Financial Director
Tel: +44 (0) 1865 884665

Hogarth Partnership Limited
Rachel Hirst
Andrew Jaques
Tel: +44 (0) 20 7357 9477



NOTES TO EDITORS

Born out of Oxford University, with over 40 years of continuous product
development, Oxford Instruments is a global leader in advanced instrumentation.
It is a recognised world leader in several technologies, including the
application of superconductivity, the creation of low temperatures and the
production and detection of X-rays. The Company's products are used around the
world in scientific research, industrial chemical analysis and quality control,
and semiconductor processing. Its customers include most of the world's major
international companies, as well as the leading research institutes.





                      This information is provided by RNS
            The company news service from the London Stock Exchange

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