OFFER OF EMPLOYMENT

STRICTLY PRIVATE & CONFIDENTIAL

12 September 2005

Daniel Abrams

8a Gordon Avenue

Stanmore

Middlesex

HA7 3QD

Dear Daniel,

On behalf of Cambridge Display Technology Ltd. ('CDT'), I am pleased to offer you the position of Chief Financial Officer. CDT will provide a salary of GBP185,000 per annum paid monthly. In addition, you will be eligible to participate in CDT's bonus scheme, which is payable up to a maximum of 35% of your annual salary and is awarded against achievement of agreed performance targets. Your estimated date of hire is 26 September 2005.

You will be eligible to join the Stock Option scheme established at CDT, subject to the rules of the scheme. You will be awarded 180,000 stock options as soon as possible after your start date with CDT, at a grant price at the fair market value on your date of hire.

You will be eligible to participate in the benefits program (including private health insurance, pension plan and life assurance) established at CDT.

By accepting this offer you confirm that:

1. you are not subject to restrictions or other obligations relating to the nature or scope of your employment with another employer; and
2. by your performance of your duties as contemplated by this letter you will not knowingly violate the terms or conditions of any prior employment agreements you may have executed; and
3. you are currently in good health and will pass any medical examinations necessary for the establishment of your benefits package.

This offer is comprised of this letter and the attached statement of the main terms and conditions of employment. No prior promises, representations or understandings relative to any terms or conditions of your employment are to be considered as part of this agreement unless expressed in writing in this offer package. This offer is subject to you being legally able to live and work in the United Kingdom.

If you accept the offer of employment, I should be grateful if you would return to me one copy of the offer letter and a copy of the statement of the main terms and conditions of employment signed by yourself. A copy is also enclosed for your records.

If you have any queries regarding the offer we have made to you please do not hesitate to contact me to discuss these queries.

This offer is valid until 18 September 2005.

Yours sincerely,

/s/ Emma Jones

Emma Jones

VP, Human Resources and Facilities

I agree to the above Signed:           /s/ Daniel Abrams

                         Daniel Abrams

            Dated:            14.9.05

Statement Of Main Terms And Conditions Of Employment

This Agreement is made on the 12 September 2005.

Between:

1. Cambridge Display Technology Limited (company number 2672530) whose registered office is at Building 2020, Cambourne Business Park, Cambridgeshire, CB3 6DW ('CDT' and/or 'the Company'); and
2. Daniel Abrams of 8a Gordon Avenue, Stanmore, Middlesex, HA7 3QD ('You' and/or 'Your').

It is agreed that the following is a statement of the main terms and conditions applying to your employment with CDT, including all particulars required to be given to you in writing under the Employment Rights Act 1996. This statement together with your offer letter, and the stipulated provisions of the relevant employment policies, constitutes your contract of employment

Date Of Commencement Of Employment

Your continuous employment with CDT dates from 26 September 2005.

Your employment with any previous employer does not count as part of your continuous period of employment.

Main Place Of Work

Your main place of work will be the CDT office Cambourne, or such other location within the United Kingdom as CDT reasonably requires.

You may on occasion be required to work at other locations in the United Kingdom, including, but not limited to, Cambridge or Godmanchester.

The nature of your appointment may require you to travel inside and outside the UK on company business, as required for the performance of your duties. There is no current requirement for you to work outside the United Kingdom for any consecutive period in excess of one month.

Job Title and Duties

You are employed as a Chief Financial Officer, reporting to the Chief Executive Officer.

Your job title is not regarded as exclusive or exhaustive. There will be other duties and requirements associated with your position that are within your capabilities and which you may be required by the Board of Directors (the 'Board') to undertake.

At all times during your employment you shall:

1. unless prevented by ill health and except during annual leave/holidays taken in accordance with this Agreement, devote the whole of the your working time and attention to your duties;
2. perform the duties of a Chief Financial Officer faithfully and diligently;
3. obey all lawful and reasonable directions of the Board, observe such restrictions or limitations as may from time to time be imposed by the Board upon you and implement and abide by any relevant Company policy which may be promulgated or operated in practice from time to time;
4. use best endeavours to promote the interests of the Company and shall not do or willingly permit to be done anything which is harmful to those interests; and
5. keep the Board fully informed (in writing if so requested) of your conduct of the business or affairs of the Company and provide such explanations as the Board may require.

1. Remuneration

Your annual salary is GBP185,000. Any changes to your annual salary will be notified to you in writing. You will be paid monthly in arrears on the 28^th day of each month by direct credit transfer to your UK bank account. Where the 28^th day falls on a weekend or a bank holiday, you will be paid on the preceding working day.

You will be provided with an itemised pay statement.

2. Other Benefits

You will be eligible to participate in the CDT benefits program that will include:

1. Private Health Insurance
2. Life Assurance
3. Pension Plan
4. Bonus Scheme
2. Hours Of Work

Your normal starting time is 9.00 a.m. and your normal finishing time is 5.30 p.m. Monday to Friday with an unpaid lunch break of one hour each day. You are required to work at such other times as CDT may reasonably require and as may be necessary for the proper performance of your duties. As a salaried employee overtime is not payable.

4. Holidays And Holiday Pay

Your annual paid holiday entitlement is 27 working days in any complete calendar year of employment, which accrues on a pro-rata basis for each completed month of employment. The holiday year at CDT runs from 1 January to 31 December.

Should you be absent for more than 4 weeks for any reasons, CDT reserves the right to suspend accrual of any holiday in excess of the minimum 4 weeks conferred by the Working Time Regulations (where applicable, this clause will not apply to the Ordinary Maternity Leave period).

Further details of the holiday policy can be obtained from your Line Manager.

Bank and Public Holidays

In addition to annual holidays, you are entitled to paid holiday on all English statutory public holidays and any additional holidays as awarded by CDT.

5. Sick Pay Scheme
1. Any absence due to sickness or injury must be notified to your designated Line Manager as soon as possible together with an estimate of the period of absence envisaged. Any change in the estimated period of absence must be notified as soon as possible.
2. In the event of you being absent for more than 7 days (inclusive of weekends), medical evidence must be produced in the form of a statement of reasons for absence completed by a qualified medical practitioner and sent to your Line Manager.
3. Any payments made in addition to Statutory Sick Pay are entirely at the discretion of CDT and will not create a precedent either for CDT or for the individual.
6. Pension Scheme

CDT provides access to a Group Stakeholder Pension Plan for all employees. CDT will contribute 5% of your pensionable salary to this plan provided that you also contribute a minimum of 5% of your pensionable salary. You can choose to pay less than 5% of your pensionable salary into the plan if you wish, however you will not then receive a contribution from CDT. You can also elect to contribute more than 5% of your salary to this plan (subject to legislative maximums) however CDT will not match any payments above 5%.

Details of this scheme will be provided to you when you join. If you choose not to join this scheme, CDT will pay you a cash allowance equivalent to 5% of your pensionable salary (subject to statutory deductions).

7. Maternity / Paternity Provisions

CDT's Maternity or Paternity policy and procedure can be obtained from your Line Manager, where applicable.

8. Parental leave

CD