RNS Number:6692O
Applied Optical Technologies PLC
14 August 2003


Embargoed until 11.00                                           14 August 2003



                        APPLIED OPTICAL TECHNOLOGIES PLC
                            ("AOT or "THE Company")

                                  AGM Statement
                                        
                                      
At the Annual General Meeting of Applied Optical Technologies plc, to be held
today, David Mahony, Chairman, will tell shareholders:

"We are pleased to announce a new contract for the supply of tax stamps worth
approximately #1.9million. The major part of this contract will be fulfilled
from our European operations in the second half of the current year.

"However, the difficult economic conditions that impacted European results in
the second half of last year have continued into the current year. Demand for
currency contracts has been depressed and further success in this market is
dependent upon the ability of our key customers to win a share of the reduced
banknote work available. The second half will benefit from the new contract for
tax stamps and the results of the sales initiatives already undertaken but this
is unlikely to compensate for the anticipated shortfall in the results for the
first half of the current year.

"US operations overall are performing in line with expectations and this should
translate into another year of progress. Record sales of Brand Protection
products have offset some slippage on the receipt of ID Document orders, which
are now expected in the second half of the year. Rick Salomone, President of
American Operations, has today joined the board.


"Our joint venture 3DCD is progressing as expected in relation to its core
business and is making encouraging progress in widening its customer base.

"The previously announced review of operations directed to ensuring a return to
profitability and a higher valuation for the Group has started in consultation
with our professional advisors and is proceeding to plan."


                                    - Ends -

For further information, please contact:

Applied Optical Technologies plc                                0191 419 3344
Mike Angus, Finance Director

Weber Shandwick Square Mile                                     020 7067 0700
Sally Lewis




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

END
AGMNKQKPKBKDFFD