RNS Number:3654K
Telemetrix PLC
25 April 2003


25 April 2003


                                  TELEMETRIX PLC

                                      AGM

                              CHAIRMAN'S STATEMENT



The following is the text of the Chairman's statement which will be given at the
Company's Annual General Meeting to be held at 11:00am today:


"Overall Group trading in the first quarter of 2003 has been in line with
budget.  Strong over performance by Zetex, the Group's analog semiconductor
solution provider, has offset weaker than expected sales at Trend's broadband
test division; Trend's enterprise network support division has traded in line
with budget.


Zetex' current year first quarter sales, denominated in both # sterling and US
dollars, were sequentially ahead of the fourth quarter 2002 comparators, and
management accounts show operating profit for the period ahead of that for the
previous quarter.  This is the sixth successive quarter in which Zetex has shown
sequential quarter on quarter growth in sales.  With a similar level of sales
expected for the second quarter, the Board expects Zetex to achieve a much
improved first half 2003 performance compared to the first half of last year.
This expectation is supported by the rate of order intake in the first quarter
of the year and by the order book at the start of the second quarter.  A
combination of forward sales of the anticipated unmatched US dollar inflow and
of a strengthening US dollar through the first quarter minimised currency driven
deviations from budgeted # sterling denominated sales and profits.  The
programme of forward sales of US dollars has been extended to the second and
third quarters.  To date the relative resilience of many of the end markets
addressed by Zetex appears to have been sustained.


The first calendar quarter has historically been the weakest in the year for
Trend's broadband test division and, although this was anticipated in the
budget, the actual sales for the period have been markedly lower than budget.
The size of the sales shortfall, combined with the substantial gross margin on
sales enjoyed by the division, has more than outweighed the benefits of the cost
reduction exercise implemented at the end of last year and management accounts
show a larger loss for the first quarter of 2003 than for the same period last
year.  It appears that more telco capex projects have been held back than
anticipated, largely, it is believed, in response to weak corporate


spend on data networks.  Although Trend's test division has a substantial
prospect bank, it must be assumed that, until there is firm evidence of capex
budget releases by operators, sales for the rest of 2003 will bear the normal
seasonal relationship to the lower than expected first quarter sales.  On this
basis the second quarter is expected to show an improvement on the first, but
the division is unlikely to recover to budgeted levels for the half year.  The
division's performance for the first half of 2003 will also suffer in comparison
to the first half of 2002 which benefited from a one off net credit of #0.7m
related to the renegotiation of minimum purchase agreements with Agilent.


As anticipated at the preliminary results announcement in February, first
quarter sales of Trend's enterprise network support division have shown modest
growth, whilst the operating margin has been reduced, as predicted, by the
higher support fees payable to network equipment vendors.  This pattern of
trading is expected to continue through the second quarter.


Overall, the Group's performance in the first half of 2003 is currently
anticipated to be in line with expectations.  Unless the test equipment market
deteriorates from current levels or the spread of SARS materially impacts
economic activity, particularly in the PRC and Hong Kong, the continuing
recovery at Zetex and the steady performance of Trend's enterprise network
support division give the Board confidence that further progress will be made by
the Group in the second half of the year.  The Group's cash position remains
strong."



                                     -Ends-



Enquiries:

Tim Curtis                          or              Bruce Rattray
Chief Executive                                     Finance Director
Telemetrix PLC                                      Telemetrix PLC

Telephone:  +44 (0) 20 7638 9571 on 25 April 2003
Thereafter:  +44 (0) 1628 851144

Toby Mountford / Seb Hoyle
Citigate Dewe Rogerson
Telephone: +44 (0) 20 7638 9571



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

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