Disputed Claim

MSW Technology PLC
17 August 2000


                  MSW TECHNOLOGY PLC ('the Company')

                                   
The  Company announces that, in connection with the statement made  in
paragraph 11 of Part IV of the circular to shareholders issued  on  29
November  1999,  a  claim  for breach of contract  (relating  to  work
carried  out  prior  to 31 August 1999) has been  issued  against  the
Company   by   Reliance   Security  Services  Limited   ('RSSL')   for
approximately £435,000 plus costs and interest.  The Company  strongly
disputes  the  validity  of  the claim and  will  be  counter-claiming
against  RSSL  for  unpaid  invoices owed  to  the  Company  totalling
approximately £45,000.  Provisions were made in the year ended 31  May
2000 in respect of fees which may not be recovered as a result of this
claim  and,  in the opinion of the Directors of the Company,  adequate
provisions  exist  to cover the legal costs of defending  this  claim.
The  Company  has standard professional indemnity insurance  in  place
consistent with equivalent insurance maintained by other companies  in
the IT sector.

The  Company will post its Report and Accounts for the year ended 31st
May, 2000 to shareholders today.