BOI Bank Irel13.375

RNS No 1069v
BIOTRACE INTERNATIONAL PLC
8 September 1999

                            
                ANNOUNCES INTERIM RESULTS
          for the six months ended 30 June 1999
                            
Biotrace  International Plc ("Biotrace"), leader  in  the
manufacture  and marketing of rapid response systems  for
hygiene  control and microbial detection, today announces
its  interim  results for the six months  ended  30  June
1999.

                       HIGHLIGHTS


*    8.4% increase in sales to #4.50 million (1998: #4.15
     million)
*    Reagent revenues grew at 37%
*    Pre-tax loss for the period #0.44 million (1998:
     #0.30 million profit)
*    Over #1.0 million reduction per annum in Group
     overheads
*    New Chief Executive Officer appointed - founder &
     major shareholder
*    New North American distributor appointed
*    11 European distributors appointed covering 19
      countries
*    Previous distribution arrangements terminated at
     minimal cost
*    Strategy revised and Product Development refocused
  
Commenting  on the results, Terry Clements, Non-Executive
Chairman of Biotrace said:

     "After a difficult six months, Biotrace is now a re-
     structured and re-focused company under the guidance
     of  a  dedicated  team working under an  experienced
     Chief   Executive.   With  the  majority   of   the
     challenges  that  we  faced  two  months   ago   now
     overcome,  I feel confident that we are  building  a
     solid platform to achieve our goals"

For further information:
Biotrace  International          Tel:  +44(0)1656 641 400

Ian Johnson, Chief Executive Officer
Peter Morgan, Finance Director

Buchanan Communications          Tel: +44 (0)171 466 5000
 Lisa Baderoon / Tim Anderson


    INTERIM RESULTS FOR SIX MONTHS ENDED 30 JUNE 1999
                            
OVERVIEW

Sales  increased by 8.4% to #4.50 million  in  the  first
half  (1998: #4.15 million).   Reagent revenues  grew  at
37%, although instrument sales stalled as a result of the
suspension   of   the   North   American   and   European
distribution   arrangements  and  related   negotiations.
This  led  to  an  inevitable gap until new  distribution
agreements could be put in place.   In addition, sales of
Biotraces new  "Autotrack" system have been slower  than
expected.   These factors, combined with increased levels
of  investment  in  Autotrack development  and  promotion
resulted in a loss for the period of #0.44 million (1998:
#0.30  million  profit).     As  in  previous  years,  no
dividend is recommended.

Following  the resignation of Jim Keir, Chief  Executive,
on  2  July  1999,  Ian Johnson (46),  founder  and  non-
executive director, stepped in as Acting Chief Executive.
Ian,   who  remains  a  major  shareholder,  will,   with
immediate  effect,  become  full  time  Chief  Executive.
Since  2  July, he has made a significant impact  on  re-
focusing the team and turning around the business,  which
will  result  in  annualised savings of  more  than  #1.0
million.   The Board is confident that Ian Johnson brings
with  him the experience and personal incentive  to  take
Biotrace  forward.   Going forward the business  will  be
more focused with improving financial performance.

SALES & MARKETING

Since  the  period  end, a settlement  with  the  Group's
original  North  American distributors, Ecolab  has  been
satisfactorily  concluded with  no  termination  payment,
save  for  the  return of a small quantity of  instrument
stock.

For the North American food and beverage market, Biotrace
has  recently  appointed Neogen Corporation  as  its  new
distributor.   Neogen staff have been brought fully up to
speed  on the Biotrace product range and are now actively
marketing Biotrace products throughout the US and Canada

Similarly  the previous European distribution arrangement
with Henkel-Ecolab has been concluded with no termination
payment  and  11  new European distributors  covering  19
countries have been appointed.   Training has taken place
and  the  products  are  being actively  marketed  across
Europe.

With  the exception of the UK domestic market, the  Group
will continue to distribute its products exclusively  via
distribution partners and it is the intention  to  secure
leading companies in each of the new sectors Biotrace  is
focusing on.   The signing up of these partners will  re-
establish   sales   and   service   levels   which   were
significantly affected during the period.   The Board now
expects   sales   levels   to   increase,   though    not
significantly until the new year.

STRATEGY

As  part  of  the  review  of strategy  some  significant
changes have been made which the Board are confident will
improve shareholder value in the medium term.

Sector Expansion
Biotrace  intends  to build on its position  as  a  world
class  supplier  of  rapid hygiene  testing  systems  and
reagents to the Food and Beverage sector.  With 19 of the
top 20 food and beverage companies as Biotrace customers,
leadership  has  been achieved and every effort  will  be
made to consolidate this position.

Biotrace also aims to expand its business in the areas of
Food  Service and Catering, Industrial and Environmental,
Civil  Defence and Military .   As part of this  strategy
the  Sales and Marketing teams have been restructured  to
ensure full advantage is taken of the individual business
sectors   via   the  creation  of  Business   Development
Managers, Product Managers and field-based General  Sales
Managers.

Reagent Supply
A   central   part  of  the  new  strategy  of  providing
innovative   technologies   and   products    to    major
international partners, is to retain total  control  over
the supply of reagents.  Considerable investment has been
made  in Biotraces reagent production facilities.   Some
additional  investment  will  be  necessary  as   volumes
increase  further, however, this will benefit  the  gross
margins  through  a reduction in manufacturing  costs  as
production efficiencies are achieved.

Biotrace Inc.
A  significant  reduction in overheads has been  achieved
through  downsizing and redirecting the US  organisation.
Biotrace  Inc.  now  functions as a distributor  and  key
account   support   organisation.   This   restructuring,
although  incurring a modest charge in  the  second  half
will yield cost savings of approximately #1.0 million per
annum.

An  additional benefit of the restructuring  of  Biotrace
Inc.  will be the ability to utilise tax losses in excess
of  $5  million in the US.   This will arise due  to  the
significant  turnover of this subsidiary  and  the  much-
reduced operating costs.  The effect should be to  reduce
the  tax burden for the Group over the next few years and
therefore enhance earnings per share.

SUMMARY

Whilst sales in the first half of the financial year have
not achieved the levels expected and will impact the full
year,  the  Board  is  confident that  the  new  strategy
together  with  the reorganised and refocused  management
team  will unlock the potential value of Biotrace.   This
will   undoubtedly  be  aided  by  the  new  distribution
arrangements agreed in Europe and North America.

Biotrace  has  started to make successful  in-roads  into
sectors  that  offer significant growth  potential.   The
main  profit  driver  for the business  is  the  sale  of
reagents,  and  these continue to grow.    Gross  margins
remain  high, which Biotrace believes will be sustainable
particularly  when taking account of the new  areas  that
the Group is currently looking to enter.

In   addition  the  management  re-structuring  that  has
already  taken  place over the last two  months,  coupled
with   the   significant  reduction  in   overheads   and
distributor  changes,  will lead  to  improved  financial
performance in the second half of 1999.   Biotrace is now
in a strong position to take advantage of its position in
the market and of the considerable potential of its novel
technology and products.

Notes to the Editor

Biotrace International Plc
Biotrace International Plc manufactures and markets rapid
response  systems  for  hygiene cleanliness  testing  and
microbial  detection  to food, beverage,  industrial  and
environmental  companies.  It is the acknowledged  global
leader   in  rapid  cleanliness  testing  and  has   been
instrumental   in  changing  the  way  that   cleanliness
standards are checked.

Nearly  all  of  the  world's  leading  food  and   drink
manufacturers, including 19 out of 20 of  the  top  world
food  and  drink  groups  now  rely  on  Biotrace  as  an
essential   part   of  their  quality   procedures.   The
pharmaceutical,  water  treatment, cosmetics,  packaging,
healthcare and defence sectors also use Biotrace systems

Formed  in 1988 and floated on the London Stock  Exchange
in  1993,  Biotrace intends to continue  to  broaden  its
product   and  sector  profile  through  a  focused   R&D
programme as well as accessing new markets e.g. the  food
service, catering, industrial and water sectors.

Products
Clean-Trace  Rapid  Hygiene  Test:    Biotrace's  single-
action  surface cleanliness test which is  the  simplest,
quickest and most reliable on the market.   Unlike  other
test devices it measures all of the sample, both the swab
and  the liquid, so that there is no dilution or transfer
losses of the sample.

Clean-Trace can be used with Biotrace's Uni-Lite and Uni-
Lite XCEL Systems.

Aqua-Trace  Rapid Water Test:  enables food and  beverage
companies  to  efficiently monitor  the  performance  and
hygiene of CIP rinse systems.  This test can be used  for
traditional  industrial  applications  such  as   cooling
towers, recirculatory and closed systems as well as other
applications in the food and beverage industry.

Uni-Lite  and Uni-Lite XCEL: portable systems which  help
to  avoid the risk of product recall or hygiene scares by
eliminating  hazards  before  production  begins.     The
system delivers test results in minutes rather than days,
as   in  the  traditional  techniques.     The  virtually
instant  results  enable companies  to  prevent  problems
before  they  arise, thereby saving money and  increasing
profits.

Autotrack:    is   Biotrace's   "on-line"   system   that
continuously analyses microbial contamination in  air  or
liquid  samples and gives real time results.    Autotrack
monitors  the  microbial  contamination  using  adenosine
triphosphate (ATP) bioluminescence technology and is able
to  detect contamination of all micro-organisms including
bacteria,  yeast  and  mould,  at  very  low  levels   if
required.  A fully automated test, Autotrack requires  no
manual intervention and is capable of performing as  many
as 1440 tests per day.


Neogen Corporation
Neogen  are  a  Lansing,  Michigan-based  company   which
develops  and markets products and services dedicated  to
food  and animal safety.   Neogens sales in 1998/99 were
$22  million - up 20% on the previous year.    Neogen  is
replacing Biotraces US distributors, Ecolab.

Neogen   manufactures  and  markets  a  wide   range   of
diagnostic   products  including,  tests  for   foodborne
bacteria  ( salmonella, E. coli, listeria etc.),  natural
toxins, food allergens, drug residues and plant diseases.
Neogen  are  market  leaders in food quality  diagnostics
with leading brands including. "Veratox" and "REVEAL".


CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 June 1999

                        Unaudited       Unaudited       Audited
                        Six months      Six months      Year
                        to 30.06.99     to 30.6.98      to 31.12.98
                        #000           #'000           #'000

Turnover (continuing     4501            4154           10441
operations)
Cost of sales          (1317)           (1154)          (2929)
Gross profit            3184             3000            7512

Administrative expenses(3114)           (2301)          (4878)
- ordinary                -                -            (354)
exceptional                                      
                        (3114)          (2301)          (5232)
Development costs        (504)           (411)          (1055)
Operating profit/(loss)                          
(continuing operations)   (434)            288           1225
Profit/(loss) from           3        -             (1)
fixed asset disposals
Interest receivable and      3              12            23
similar income
Interest payable and       (13)         -             -
similar charges
Profit/(loss) on                                            
ordinary activities       (441)            300          1247
before taxation
Tax on ordinary            (75)      (75)          (560)
activities
Profit/(loss) on          (516)      225            687
ordinary activities
after taxation (Note 1)
Earnings/(loss) per                                      
ordinary share (Note 2)
- basic                 (1.58)p      0.72p           2.16p
- fully diluted         (1.55)p      0.65p           2.00p
- before exceptional    (1.58)p      0.72p           3.19p
items

CONSOLIDATED BALANCE SHEET
As at 30 June 1999

                        Unaudited       Unaudited       Audited
                        As at           As at           As at
                        30.6.99         30.6.98         31.12.98
                        #000           #'000           #'000

Fixed assets   -          274              225             290
intangible               2446             2176            2365

- tangible
Current assets                                   
Stocks                   1824              995            1397
Debtors                  3411             2571            3754
Cash at bank and in       106              824             527
hand
                         5341             4390            5678
Creditors: amount       (2188)           (1324)          (2401)
falling due within one
year
Net current assets       3153             3066            3277
Total assets less        5873             5467            5932
current liabilities
                                                 

Capital and reserves                             
Called up share          3384             3208            3208
capital
Share premium account    5537             5400            5400
Profit and loss         (3048)           (3141)          (2676)
account
Shareholders' funds      5873             5467            5932
                            
                            
                            
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 June 1999

                        Unaudited    Unaudited       Audited
                        Six months   Six months      Year
                        to 30.6.99   to 30.6.98      to 31.12.98
                        #000         #'000           #'000

Net cash                                         
inflow/(outflow) from    (428)        150             345
operating activities
Returns on investments                           
and servicing of
finance
Interest received           3          12              23
Interest paid             (13)         -               -
                          (10)         12              23
Capital expenditure                              
Purchase of intangible      -         (85)           (160)
fixed assets
Purchase of tangible     (315)        (221)           (653)
fixed assets
Receipts from sales of      7           -               5
tangible fixed assets
                         (308)       (306)           (808)
Cash flow before         (746)       (144)           (440)
financing
Financing                                        
Issue of ordinary         313          466             466
share capital
                                                 
Increase / (decrease)    (433)        322              26
in cash


NOTES TO THE ACCOUNTS


Note 1:    The   total  recognised  gains   and   losses
     recognised in the period comprise the losses made in
     the   six  months  (#516,000)  and  gains   in   net
     investment  in  foreign  enterprises  arising   from
     changes in foreign currency rates of #144,000.

Note 2:    Earnings/(loss) per ordinary share is based on
     the   profit/(loss)  on  ordinary  activities  after
     taxation  and  on  32.7 million ordinary  shares  in
     issue   during  the  period  (1998  :  31.5  million
     ordinary shares).  Fully diluted earnings/(loss) per
     share  is  based on the profit/(loss) after taxation
     and  33.3  million  (1998 : 34.5  million)  ordinary
     shares.   The earnings before exceptional  items  in
     the year ending 31 December 1998 is calculated using
     profit after taxation of #1,013,000.

Note 3:    The interim accounts included in the financial
     information  are not audited, and do not  constitute
     full  statutory  accounts  within  the  meaning   of
     Section  240  of  the  Companies  Act  1985.    Full
     financial  statements of Biotrace International  Plc
     for  the  year ended 31 December 1998 on  which  the
     auditors gave an unqualified audit report have  been
     delivered to the Registrar of Companies. The Interim
     Report  is  being  sent to registered  shareholders.
     Further  copies  are  available from  the  Companys
     Registered  Office  at The Science  Park,  Bridgend,
     CF31 3NA. The accounts have been prepared under  the
     historical  cost  convention and in accordance  with
     applicable accounting standards.


END

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