Disposals, etc

SILVERMINES GROUP PLC
5 October 1999

SILVERMINES GROUP PLC
DISPOSAL OF UK SECURITY BUSINESSES
5 October 1999

Silvermines Group plc ('Silvermines') is pleased to announce that it has sold
the UK based manufacturing and distribution operations of its Security
Division and the related Belgian and Dutch sales businesses, for £5.6 million
in cash to Bewator Cotag Ltd, part of the Bewator Group of Sweden.

As set out in the Chairman's Statement accompanying the interim results
announced on 23 September 1999, Silvermines has been in discussions regarding
the sale of these loss-making operations, which have faced increasing
competition in a difficult market.

The businesses being sold are engaged in the manufacture, sale and
distribution of CCTV security products. The disposal comprises the sale of the
majority of the business and assets and some liabilities of Silvermines
Security Limited ('SSL') and the sale of Video Security Systems NV ('VSS').
The UK Security businesses of SSL that are being sold incorporate the trading
activities of Molynx and Videmech. SSL and VSS are wholly owned by
Silvermines.

The businesses being disposed of made a pre-tax loss of £1.l million for the
year ended 31 December 1998, on turnover of £12.4 million and an unaudited
pre-tax loss of £0.8 million in the first six months of 1999.

The disposal price is at a discount to the carrying value of the net assets
being sold, which was £7.l million at 30 June 1999 (unaudited). In addition,
£10 million of goodwill previously written off to reserves will not be
recovered.

The disposal proceeds will be used to reduce borrowings.

It is the Group's intention to focus on two divisions, Broadcast and
Telecommunications and Video Technology. The remaining segments of the
Security Division, comprising the businesses that sell directly to end users,
are being retained to form the Video Technology Division.

Ian  Scott-Gall, Silvermines' Chief Executive, commented: 'This sale  
largely completes the Group's disposal programme. Together with the proposals
that have already been announced to dispose of the UK Aerospace and Electrical
Divisions, it  will allow the Group to focus on its core operations and be in
a strong position from which to grow.'

For further information please contact:

Ian Scott-Gall 
Chief Executive, Silvermines
Tel: [phone]

Andrew Sharkey / Emmanuel Kenning
Luther Pendragon
Tel: [phone]