RNS Number:7226H
Applied Optical Technologies PLC
20 February 2003


Embargoed until 7.00                                            20 February 2003





                         Applied Optical Technologies plc

                            ("AOT" or "the Company")



                               Trading Statement





Applied Optical Technologies plc announces today that, further to the Interim
Statement on 21 November 2002, it has not yet seen the upturn in profitability
expected in the second half of the year. While the Company's American operations
are performing ahead of forecast the European operations continue to experience
difficult trading conditions and the Company now expects results for the
financial year to be materially below market expectations. Management are
looking at options for further rationalisation of the European operations and
will carry out a thorough review of certain of its assets as part of the audit
process.



European Operations



Significant progress continues to be made in improving the technical and
manufacturing capabilities of the European business. However, sales volumes have
been below expectations due to a combination of ongoing delays in the banknote
market, difficult conditions in certain geographical markets and an under
performing sales organisation.



The Company is pleased to announce the appointment of a new sales director for
Europe, Andrew Mills.  Mr Mills was formerly sales and marketing director at
Portals, Bathford (De la Rue), and was previously with ICI and Kodak.  The sales
organisation has also been strengthened by the appointment of two new Sales
Executives who will be responsible for UK and Asian sales respectively. In
addition a specialist consultancy has been engaged to assist in improving the
performance of the European sales organisation.



American Operations



The American operations are trading above forecast and continue to grow and
successfully compete for new business.  Recent new business includes a number of
new brand protection accounts and the award of a contract from the State of
Pennsylvania worth in excess of $1 million per year. The American management
team is optimistic about the prospects for its business in the coming year.



Investor relations



Given the increased emphasis on security in the United States and OpSec's
previous listing on Nasdaq, the American investment markets are a potential
source of investors for AOT.  A series of initial presentations to potential
American investors has been scheduled for the week commencing 24 February 2003.



Mark Turnage, Chief Executive, commented:



"We are confident that the combination of the improving operating performance of
our European business and the measures we are taking to rationalise further our
operations and improve our sales organisation will lead to a marked upturn in
the performance of this part of our business. Our American business continues to
perform well, our balance sheet and cash position remain strong and the signs
for the next financial year are encouraging."



                                    - Ends -

For further information, please contact:
Applied Optical Technologies plc                                  07785 255684

Mark Turnage, Chief Executive (mturnage@AOTgroup.com)
Mike Angus, Finance Director

(mangus@AOTgroup.co.uk)




Weber Shandwick Square Mile                                      020 7067 0700

Nick Oborne/Sally Lewis






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

TSTBRGDDBBBGGXC