AGM Statement

Screen PLC
24 June 2004


                                   SCREEN PLC

                                 AGM Statement


Screen Plc ('Screen' or the 'Group'), which focuses on the development and
supply of security and surveillance solutions, today held its Annual General
Meeting in the City of London at 11:00 am.


At the AGM Tim Wightman, Chairman, made the following statement to shareholders:


'In the Annual Report I explained the actions that management was taking to make
the business more competitive and profitable and the reasons why such actions
had become necessary. I would like now to report on the progress in the two
months since the report was written.


Joyce Loebl

In the Chairman's Statement I referred to a strategic review to decide how best
Joyce Loebl can contribute to the Group's future core business, now focused on
the development and supply of security and surveillance solutions.  The
review has given rise to a number of changes in Joyce Loebl and to the
introduction of improved information systems. We are also actively pursuing
closer cooperation between Joyce Loebl's rail industry team and Petards'
software team to strengthen our capability in the rail infrastructure market.


Joyce Loebl continues to make a strong contribution to the Group, this month
winning a £6m contract for the manufacture of 500 engine and transmission
management systems for use in the Challenger 2 Main Battle Tank and associated
support and training variants. Deliveries are scheduled to commence at the end
of 2004 and will continue until mid 2007. This deal follows two previous
contracts: one, a development contract for the system, awarded three years ago
and the other, a more recent contract to supply the systems for use in the new
Titan and Trojan engineering vehicles.


Petards

The Petards rationalisation is continuing according to plan. The division's
operations are located at Hemel Hempstead and Sunbury, although for operational
reasons the Copenhagen office remains open for the time being. All the
individual subsidiaries now trade under the single Petards name and, after the
introduction of new information systems in early 2005, will be accounted for as
one entity thus reducing administrative costs.


We are also pleased to announce contract wins within Petards. Our rapidly
deployable Swift cameras will soon be in service with the New York Police
Department. The Metropolitan Police have added to the order they placed last
year for the Provida mobile video evidence system which incorporates Automatic
Number Plate Recognition. This is the same system used in a recent BBC
television documentary on the Yorkshire police and on ITV's 'Police Camera
Action'. Our strategy to develop new business with channel partners, such as
global IT companies, is progressing well.


There are numerous operational tasks with which we are dealing to improve the
way that the Group operates. Too many of these still fall into the category of
fire fighting but increasingly we are able to spend our time on making strategic
business decisions and following them through. We have concentrated in
particular on supply chain, customer service and quality issues. It will be
several months, however, before we are satisfied.


Capital Fund Raising

In my statement in the Annual Report I made the point that our business plans
have been hampered by a lack of capital resources and that to achieve all our
ambitions additional funding will be required. I would like to place on record
our appreciation of the strong backing that we are continuing to receive from
our bankers, Bank of Scotland, who support the strategy that we are following.


We are having discussions with our advisers about a capital fund raising and we
are also in constructive talks with other businesses in our sector in order to
achieve faster market penetration, synergies and further opportunities for
rationalisation. I hope that these matters will be concluded shortly and that we
will be able to bring proposals forward for shareholder approval. Clearly,
however, with the size of the balance sheet at present the scope we have is
limited and shareholders should be realistic about the scale of what might be
achieved in the short term.


Current Trading

In conclusion, as I said in the Annual Report, the improvements being introduced
will lead to a leaner, more commercially competitive and financially stronger
business. These improvements will take time to become effective, however. The
results for the first half of this year will continue to suffer from the legacy
of the past and the remedial costs will lead to an overall deterioration
compared to prior periods. We expect the benefits to begin to show through in
the second half.'


24th June 2004

Further Enquiries:

Paul McManus
Binns & Co. PR Ltd
Tel: [phone]
Mob: [phone]



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