Disposal

Vislink PLC
16 December 2002


Monday 16th December 2002

Vislink plc

Disposal of certain trading assets of American Auto-Matrix

Vislink plc ('the Group') announces the disposal of certain trading assets of
American Auto-Matrix ('AAM'), a division of Vislink, Inc ('Vislink') to a
company specifically formed by the management ('the Purchaser'), for a total
consideration of $2.02 million (£1.28 million). In addition, the cash utilised
in the business of $0.27 million (£0.17 million) has been retained by the Group.

The Business

AAM is based in Pittsburgh USA and is engaged in the business of designing,
manufacturing and selling of automated control systems, accessories and related
products to the commercial and industrial heating, ventilation and air
conditioning industry. AAM had also taken over the manufacture and distribution
of the Group's multi media server product range, AIMMS.


Consideration details

The consideration has been satisfied by the payment in cash of $1.35 million,
the issue of a one-year promissory note for $0.08 million, a retention over
certain longer term debtors of $0.09 million and 30,000 class A units in the
Purchaser valued at $0.50 million. These class A units will be held as a trade
investment for sale in due course. In addition the freehold land and buildings
currently occupied by AAM have been retained by Vislink and will be leased to
the Purchaser under a commercial lease arrangement. It is the Group's intention
to realise the current book value of the property of $1.44 million (£0.91
million) by way of a future sale.

The assets have been sold at their current net book value but the associated
sale costs and provisions made against a full realisation of elements of the
deferred consideration, will result in an estimated exceptional loss on disposal
of £ 0.30 million.

Application of Proceeds

The proceeds will be used to reduce the Group's net debt.

Discontinued Activities

The decision was taken earlier this year to seek a buyer for the business of AAM
when the impact of the significant slowdown in the Building Controls sector of
the US market meant that the high costs associated with introducing Access
Control products and the launch of the AIMMS multimedia server (previously
developed by Active Imaging) into the US market, would not provide an adequate
return for the Group. As a result of this disposal, AAM and the costs of the
AIMMS product launch will be reported in the Group's 2002 accounts as
discontinued businesses, incurring an estimated operating loss of £0.60 million.

Continuing Activities

The Group's continuing businesses which are the US and UK Broadcast Businesses
together with our specialist CCTV business Hernis, are continuing to perform in
line with market expectations.

                -Ends-

For further information please contact

Ian Scott-Gall                    01488 685500

Chief Executive, Vislink plc

James Trumper                    01488 685500

Group Finance director, Vislink plc


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