RNS No 7342x
IOC INTERNATIONAL PLC
1st July 1997

IOC INTERNATIONAL PLC ("IOC") - TRADING STATEMENT

SHORT-TERM REVENUES

The Company has been informed by its largest customer 
that purchases from IOC in July, August and September 
1997 will be very substantially reduced.  This customer 
has indicated its intention to resume purchasing at more 
normal levels from late September.

This customers actions will cause a substantial drop in 
IOCs revenues in the fourth quarter of the current 
financial year.  IOC may report a loss for the year as a 
whole in consequence of the size and abrupt nature of the 
change.  The Directors believe that this reduction in 
purchases represents an isolated problem.

OUTLOOK

IOCs third telecommunication equipment customer, whose 
account was recently secured and announced, has commenced 
purchasing IOC product.  The Directors are very confident 
of further broadening of the customer base in the short 
term.  

The product development programme will result in further 
product commercialisation in the near term.  In 
particular, the 10 Gigabit/second modulator has been 
successfully sampled by three telecommunication equipment 
manufacturers and is expected to generate sales in the 
first half of the new financial year.  Generally, IOC has 
achievable plans for structured product launches to 
maintain competitive technology, to broaden the product 
range and to assist in broadening the customer base.

The Companys physical expansion is progressing as 
planned.

At 31 May 1997, the Company has cash resources of over 
#5.2 million and net assets of #8.2 million.

In view of IOCs advanced product development plans, 
investment in production capacity, the progress made with 
new and potential customers, and its financial strength, 
the Directors will maintain the levels of investment in 
new product, sales and facilities in order not to damage 
IOCs long term prospects.

For further information: 

Mike J Powell 
IOC International plc 
01376 502110

R David Smith
Henry Cooke Corporate Finance Ltd
0161 832 2288


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