News from Acorn Computers - Release Date 12th September 1995                                         

Acorn Forms Two New Operating Divisions 

Acorn Computer Group plc has today announced the formation of two new 
operating divisions, Acorn Education and Applied Risc Technologies, as part 
of a fundamental restructuring of its core business activities.  The 
restructuring, which will allow the Group to focus its business more clearly 
on meeting the demands of specific markets and customers, follows the 
appointment of David Lee as managing director of the Group on 28 July 1995. 

Acorn Education will build progressively on Acorn's education market 
leadership and strong brand reputation to increase its UK market share.   
Although overall staffing levels will be reduced within the Acorn Group, 
the number of staff dedicated exclusively to education will increase. Acorn 
Education will continue to focus on the sale of RISC OS based computers, but 
will seek to reduce Acorn's dependence on hardware sales only by providing 
schools with a broader range of value-added services, software and 
specialist products based on other industry standard technologies.  Mike 
O'Riordan, sales & marketing director of Acorn Computers Ltd (ACL), will 
head Acorn Education. 

Applied Risc Technologies will design and develop advanced products based on 
ARM technology.  It will continue to develop for Acorn Education but will 
also seek opportunities with leading OEMs to exploit its expertise in 
silicon integration and hardware and software design based predominantly on 
the ARM microprocessor. Applied Risc Technologies, will be headed by Peter 
Bondar, who has recently joined the ACL board as technical director. 

As a result of the restructuring approximately 50 positions have been made 
redundant.  During the next month, Acorn will be interviewing those whose 
positions  have become redundant to help them find alternative employment 
internally or  elsewhere. 

Notes to editors: Acorn Computer Group plc, one of the leading groups of 
high technology  innovators and suppliers, comprise three divisions, Acorn 
Education, Applied Risc Technologies and Online Media.  The Group also owns 
a 43% shareholding of Advanced RISC Machines Ltd (ARM). 

Ends