Acorn Increases Sales by 19% 

Acorn Computer Group plc has posted encouraging half year results in 
the six months ending 3rd July 1992.  Turnover was up by 19% at #21.1 
million against #17.9 million in 1991 whilst operating profit for the 
period rose to #749,000 (1991 - #118,000). 

As a result of continuing emphasis being placed on forward planning 
and the tight control of operating expenses,  net profit for the 
period was #511,000 (1991 - loss of #420,000). 

Acorn's tight financial controls have allowed the Company to continue 
with its aggressive research and development programme and this has 
resulted in a significant range of products being launched over the 
summer period. 

In July the Company launched its first portable notebook computer - 
the A4 - to wide critical acclaim.  It features the full ARM3 power of 
the desktop A5000, and is aimed  at secondary and higher education as 
well as at the home and small-business markets. 

On 27th August, in its largest launch ever, Acorn revealed a line-up 
of a further 14 new products, including an improved and extended A3000 
range based on the new ARM250 processor, a new A4000 series,  and new 
and improved versions of the A5000 range.  In addition, Acorn showed 
off its new Pocket Book computer, designed and manufactured in 
collaboration with Acorn's newest partner, Psion Plc. 

These new products are a key element in Acorn's strategy to strengthen 
its hold on the U.K. education market while establishing a new and 
significant presence in the  professional publishing and consumer 
markets. Indeed, the newly launched A3010 computer is the first 32-bit 
RISC computer to be offered anywhere in the world for under #500. 

To address its new customers, Acorn has made major changes to its 
sales channels.  It will supply and support directly some 50 dealers 
including those committed to the education market.  Hugh Symons 
Distribution will operate as the Company's distributor for the 
consumer market supplying a consumer dealer base of some 300 dealers. 
In addition, the new consumer products will be available through all 
major retail multiples who carry computers, including Dixons and The 
John Lewis Partnership. In total, the consumer range will be available 
through  more than 1,000 High Street outlets in the run up to 
Christmas.   

To strengthen its working partnerships with Educational IT Support 
Centres, Acorn has established Acorn in Education Centres.  These will 
offer teachers a representative display of Acorn computers as well as 
a reference library of curriculum software.  They will also offer 
access to local educational training centres and help schools to fund 
appropriate curriculum materials. 

Advanced RISC Machines Ltd (set up in 1990 in collaboration with Apple 
Computer and VLSI Technology) continues to make good progress.  The 
first half of the year saw the announcement of a new ARM6 family of 
processors designed specifically for use in Apple's portable 
computers, as well as the new ARM250 chip, referred to earlier. ARM 
Ltd has continued to meet its financial targets during the period. 

Acorn has been active in projects set up by the Commission of European 
Communities.  In the POWER project, in which Acorn is the coordinating 
partner, an embedded microprocessor from Advanced RISC Machines Ltd 
will be used at the heart of a portable workstation for use in 
education across Europe.  This links with work on another ESPRIT 
project known as the Open Microprocessor Systems Initiative, which 
will contribute to the development of the next generation of ARM 
processors. 

Acorn's subsidiaries in Australia and New Zealand have also had an 
encouraging first half with both companies achieving improved 
operating profits compared to the equivalent period in 1991. 

Acorn's Managing Director, Sam Wauchope said that despite the fact 
that trading conditions remained difficult, sales continued to 
improve.  The launch of the new products had been very well received 
and the Board continued in its belief that by maintaining tightly 
controlled overheads whilst bringing high quality and innovative 
products to the market, Acorn could look to the future once more with 
confidence. 

ENDS 

Issued by: 
Brian Salter 
Corporate Affairs Manager 
Acorn Computers 

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