Disposal

Petards Group PLC
24 December 2007



          Petards Group plc ('Petards', 'the Company' or 'the Group')


                                    Disposal


Petards, the AIM listed developer of advanced surveillance systems, announces
that it has completed the disposal of its UK Government and Commercial software
business ('the UK Software Business') to BAE Systems Integrated System
Technologies Limited ('BAE') for a total cash consideration of £2.5m.


The disposal forms part of the board's recently announced strategy to focus the
Company's resources on a more limited range of technologies and markets. £2.4m
of the consideration is payable on completion with the balance of £0.1m
conditional upon certain future events. The proceeds will be used to reduce the
Group's bank indebtedness and to invest in the remaining parts of the Group. The
Group balance sheet will be strengthened by a profit on disposal expected to be
in the region of £1m, subject to the finalisation of certain post completion
balances. Net debt as at 31 December 2007 is now forecast to be approximately
£3m.


The UK Software Business comprised Petards Limited's UVMSTM network video
recording and Advantage command and control software, together with the legacy
software products 2nd Eyes, COBYT and Argus that were the forerunners to UVMS
and Advantage. In the year ended 31 December 2006, the UK Software Business had
revenues of £1.8m (Group total: £23.2m) and made a gross profit of £0.4m (Group
total: £8.4m). Total gross assets of the UK Software Business as at 30 June 2007
were £1.6m (Group total: £8.3m).


Under the terms of the deal Petards will continue to be able to exploit UVMSTM
in the USA having been granted exclusive rights to develop, sell and maintain
UVMSTM to the US casino gaming market as well as rights to continue to sell the
product to other non-defence related US customers. BAE will continue to develop
UVMSTM and will be working in partnership with Petards to support and enhance
the product to the benefit of Petards current and prospective customers in the
USA.

Petards Limited retains its Swift rapidly deployable wireless camera technology
and ProVida range of video, speed detection and ANPR products. Petards eyeTrain
TM on-board CCTV and defence activities as well as its specialist camera
technologies are also unaffected by the disposal.

Petards Chairman Tim Wightman said 'This is an important step in the Board's
strategy. We are focussing our efforts where the Group has strong market
positions and technologies while significantly reducing the Group's net debt,
improving the balance sheet and providing additional working capital for its
remaining operations.'


For further information:

Petards Group plc                        Collins Stewart Europe Limited     Parkgreen Communications
Andy Wonnacott, Finance Director         Mark Connelly                      Paul McManus
Tel: [phone]                       Tel: [phone]                 Mob: [phone]
www.petards.com                                                             [e-mail]



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