Re Contract

Pentagon Protection PLC
15 September 2003




                            Pentagon Protection Plc:

                              Contract With VW AG

    Preferred Supplier Status represents 'a major step in UK road safety and
                                   security'


Pentagon Protection Plc ('Pentagon Protection' or 'the Company'), the AIM listed
manufacturer of innovative glass related products to the automotive sector and
other industries, announces that it has signed an agreement with VW AG ('VW' or
'the Group'), one of the world's leading automotive manufacturers, for the
Company to supply its Pentagon SupaGlass product, used for vehicle glass safety
and security.


The open ended agreement as preferred supplier status with VW provides further
confirmation of the contribution Pentagon SupaGlass is making to vehicle glass
safety and security, with its SupaGlass product to be offered by VW, Audi and
Skoda outlets as an option to retail customers at over 600 of their outlets
throughout the UK.


VW customers will be offered further safety and security options, which confirms
the Group's corporate commitment to safety strategy. It also makes VW the first
Group in the UK to offer this type of product across its entire diverse fleet of
cars and trucks.


Pentagon Protection's product is the only vehicle security film system of its
type in the UK to have attained the combined recognition of Thatcham Q Vehicle
Security Listing, a prEN 12600 Class 1 anti-bomb blast and impact resistance
certification and a number of security and safety awards, including the 'Fleet
World' security award.


It provides the Company with a much broader base of accessibility and
distribution for its SupaGlass concept. It also gives legitimacy of approval
from one of the world's leading automotive manufacturers. The Company currently
provides its products to Land Rover, plus several OEMs (Original Equipment
Manufacturers), including: Citroen, Mercedes Benz and H. R. Owen dealer groups.


Said David Thomas, Chairman of Pentagon Protection, which went public on AIM in
April 2003:

'In common with all major deals with OEM's, this agreement will take time before
the volumes being processed under the new contract are high enough to make a
significant impact on our Company's turnover. Nonetheless, as operational issues
arise and are resolved, the volumes which can be processed as a result of our
preferred supplier status in over 600 outlets round the country, is very
exciting indeed.


I am also excited by the impact that the signing of this contract is likely to
have on our interaction with other large motor manufacturers, who will no doubt
regard VW as an innovator and market leader to follow. Market forces should
ensure that the long term financial impact of this contract on Pentagon
Protection is tremendous.'


ENDS


For further information, please contact:


Pentagon Protection Plc                        020 8749 9749

David Thomas, Chairman

Geoffrey Russell, Managing Director

Danielle Stewart, Finance Director             0787 603 2222


Binns & Co PR Ltd                              020 7786 9600

Emma McCaffrey                                 07811 151 487

Peter Binns


About Pentagon Protection Plc (the 'Company')


Dealings commenced in Pentagon Protection on 2 April 2003, following a
successful Placing of 25 million new ordinary shares on AIM in London, which
raised net proceeds of approximately £500,000. Market capitalisation at the
Placing price on admission was £2.4m. This represented approximately 31.6% of
the Company's issued share capital as enlarged by the placing. The Prospectus
was issued on 28 March 2003.


  * The proceeds of the placing were used by it to fund the further
    development of Pentagon's services to the motor vehicle fleet providers,
    purchase additional machinery and equipment and to provide further working
    capital.
  * In the year ended 30 September 2002 the Company reported a 48% year on
    year rise in the turnover to £1,498,390 and pre-tax profits of £135,942.
  * The Company has strong relationships within the car industry and has
    completed commissions for Aston Martin, Land Rover and Bentley, amongst
    others.
  * The Company's growth strategy encompasses three key areas: Retail,
    Business to Business and Domestic and International Franchising.
  * The Company has been operating in its sector since 1992, with an
    established reputation as high quality applicators of vehicle window film.
  * The Company's domestic and international franchise networks include
    operations in the United States, France, the Republic of Ireland, the
    Channel Islands and 15 domestic outlets.
  * Competition in the UK is fragmented.
  * The Board of directors is chaired by David Thomas; Geoffrey Russell is
    managing director.
  * The Company's nominated adviser is Seymour Pierce Limited and its broker
    is Seymour Pierce Ellis Limited.


At the time of flotation, Chairman David Thomas said: 'The enhanced profile and
additional working capital provided by the placing and AIM listing will enable
Pentagon to develop our products and services and further expand our
international customer base.'


'Whilst the market for vehicle window tinting is mature in areas of the world
such as Australia and parts of North America, in the UK it is significantly less
developed and demand has historically been driven by the cosmetic preferences of
buyers of top-of-the-range vehicles. The UK market is also extremely fragmented.


'The Directors believe that the UK market has great potential to grow,
especially if stimulated by effective marketing to increase awareness. The
Directors anticipate that an important contributor to the market's growth will
be Government sponsored initiatives in the areas of vehicle crime and employee
related road safety.'


Interim Results


The most recent financial period under review was an active six months for
Pentagon Protection, culminating in the Company achieving a successful flotation
on AIM.


The Company's financial results for the six months to 31 March 2003 were
announced on 26 June 2003. They showed a loss of £76,669 on a turnover of
£531,930, broadly in line with management's expectations.


The results for the period under review primarily reflected continued investment
in the strategic long-term development of the business. They also reflected a
softening of the retail market and the Company's continued investment in high
potential, large-scale business opportunities through enrolment and marketing.


Clients


The Company has established strong relationships within the car industry. It has
a particularly strong presence in London, where it provides services to
approximately 50 Mercedes dealerships, Ferrari dealership Maranello, HR Owen,
Jack Barclay, Stratstone, Sytner, AFN, Jemca and the Lancaster Group. In
addition, the Company has completed commissions for Aston Martin, BMW, Daimler
Chrylser, Mitsubishi, Rolls Royce and Bentley.


The Company has for over six years prepared cars with either tints or SupaGlass
for Land Rover. This has involved product testing and the Company has attained
approved supplier status with the company, which now offers SupaGlass and tints
as a Land Rover product to its customer base worldwide. Recently, the launch of
the new Range Rover has included a specialist accessory option programme known
as 'Autobiography', in which SupaGlass is featured as a factory option.


Currently, the Company is collaborating with Land Rover on certain key projects.
It has recently received an 'Outstanding Supplier' award from Land Rover,
reflecting the strength of the relationship between the two organisations.


The Company has also entered into an agreement with Citroen to apply dark tints
to a special edition of its Xsara 'Enterprise' estate car, and it is hoped that
this will lead to further business with Citroen.


Other customers for whom vehicles have been fitted with Pentagon products
include the Cabinet and Home Office, various police forces, the Post Office, BBC
TV, Sony, Transco, Lucas and various foreign embassies.


In addition to its corporate affairs, Pentagon has also supplied and fitted
units and/or SupaGlass for a number of private customers, including many
high-profile individuals and celebrities.


Vehicle Crime


According to the Crime in England & Wales 2001/02 Report (July 2002) 18 per
cent. of all police recorded crime was accounted for by thefts of or from
vehicles. The British Crime Survey estimates that there were 1,560,000 thefts
from vehicles in 2001/02, or one every 21 seconds. These offences tend to be
opportunistic in nature and half of the thefts from vehicles are through a
broken window. In addition, recent reports of 'carjacking' have created a new
concern for motorists, particularly those driving luxury vehicles. By increasing
the time and effort required to break through a window, thus protecting the
people inside the car and dissuading most would-be thieves from persisting in
trying to break through, SupaGlass addresses both of these threats.


In order to tackle the problem of rising vehicle crime, a Government committee
called VCRAT (Vehicle Crime Reduction Action Team) was established in September
1998. This team is charged with reducing vehicle crime by 30% over a five-year
period. It has published recommendations to achieve this goal, including one
regarding the improvement of vehicle perimeter security (door locks and
glazing).


In February 2002, the RAC Foundation issued a press release advising motorists
fearful of becoming victims of carjacking to consider having protective film
applied to their car windows. According to the Foundation's executive director
Edmund King: 'using a good quality protective film professionally applied to a
window will also help motorists avoid smash and grab attacks.'


Vehicle Safety


The UK's Health and Safety Executive is considering extending the definition of
the 'workplace', with all its associated safety regulations, to include vehicles
used for work. A Government-appointed task group on work related road safety has
concluded that employers must take responsibility for ensuring the safety of
their employees while on the road on business. In a recent Health and Safety
Commission discussion document, the task group took the view that: 'Employers
should manage the risks associated with at work road journeys and other
on-the-road work activities within the framework they have in place for managing
health and safety within their firms.'







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