First Day Dealings

Screen Technology Group plc
01 August 2005

For Immediate Release                                              1 August 2005

                          Screen Technology Group plc
                     ("Screen Technology" or the "Company")
                        Placing Raising £7.9 million and
              First Day Dealings on Alternative Investment Market

Screen Technology Group plc, (AIM : SCT), a UK-based developer of a novel
technology, ITrans(R), for large visual display screens, is pleased to announce
its flotation on the Alternative Investment Market of the London Stock Exchange
("AIM") today.

A summary of key points follows:

Screen Technology

  • The Group has developed a technology called ITrans(R), that enables the
    production of high definition, large screens by seamlessly tiling together
    standard LCD modules to create a continuous image
  • £8.6 million has been invested in the Company prior to flotation by MTI
    Partners and other early stage investors. MTI Partners has invested a
    further £2 million as part of the Placing
       
  • ITrans(R) is the first technology to meet market requirements. Industry 
    experts consider that the maximum size for LCD or Plasma that will be
    commercially available within the next five years is 102" with a large area
    brightness level of less than one quarter of what can be achieved by 
    ITrans(R)

  • Target market is currently £1bn rising to an estimated £1.5bn by 2010
    (source: iSuppli Large Screen Display Annual Report 2004).

The Placing

  • Screen Technology has raised £7.1 million (net of expenses) at a Placing 
    Price of 63p per Ordinary Share organised by Charles Stanley & Co.
    Limited on behalf of the Company

•   Market Capitalisation of the Company following the Placing is £20.5
    million

•   Use of funds

    - Increase production capacity
    - Staffing resources to support expansion
    - Marketing and advertising
    - Working capital

Peter Smyth, Chairman of Screen Technology, commented :

"We are extremely pleased with Screen Technology's successful fundraising and
flotation on AIM.  These funds will enable the Group to ensure that ITrans(R)
maximises the benefit of the great potential of its technology. Our next step
will be to increase our production capacity and sales and marketing reach within
this rapidly growing market place. We look forward to reporting on our 
progress."

Ernie Richardson, Chief Executive of MTI Partners, said :

"MTI is delighted to be able to continue to support Screen Technology. The
Company   is one of a number of investments in our portfolio with the potential
to offer exceptional returns. The markets for high performance displays are
immense, with endless opportunities such as the 2012 Olympics on the horizon.
ITrans(R) has the potential to make a very substantial impact. This funding
provides the resources to scale up production to meet that demand and produce a
very exciting growth company. We congratulate the Screen Technology team on
their achievement in bringing this compelling technology to market."

For further information contact:

  Tony Kellett                                              Tel : [phone]

  Screen Technology Group plc
  Dugald Carlean                                            Tel : [phone]

  Charles Stanley & Co. Limited (Nominated Adviser & Broker)
  Isabel Podda, Rebecca Skye Dietrich                       Tel : [phone]

  Buchanan Communications



PLACING STATISTICS


Placing Price                                                                63p
Number of Ordinary Shares in issue prior to the Placing               19,875,166
Number of Placing Shares to be issued                                 12,613,804
Number of Ordinary Shares in issue immediately following Admission    32,488,970
Percentage of enlarged issued share capital subject to 
the Placing                                                        38.8 per cent
Market capitalisation at the Placing Price on Admission            £20.5 million
Estimated gross proceeds of the Placing                             £7.9 million
Estimated net proceeds of the Placing                               £7.1 million

EXPECTED TIMETABLE OF PRINCIPAL EVENTS

Admission and dealings commence in the 
Ordinary Shares on AIM                                  8.00 am on 1 August 2005
CREST accounts credited by                                         1 August 2005
Definitive share certificates despatched                          22 August 2005

PART I

INFORMATION ON SCREEN TECHNOLOGY GROUP PLC

 1. Introduction

Screen Technology has developed a technology called ITrans(R), that enables the
production of high definition, large screens by seamlessly tiling together
standard LCD modules to create a continuous image. ITrans(R)  offers unique
display performance to satisfy the demands of key parts of the large displays
market providing the resolution, image quality and brightness for use in
high-ambient lighting sheltered areas. The initial target market for high
brightness, indoor large displays is currently worth £1 billion (2005) and is
predicted to reach £1.5 billion by 2010 (source: iSuppli Large Screen Display
Annual Report 2004). The high-ambient light sector demands high resolution and
brightness and flexibility in shape. The Directors believe that ITrans(R) has
unique performance characteristics that are particularly suited to this exciting
market segment.

The Group has been able to develop its technology with the support of MTI
Partners and other early stage investors with a total investment to date of £8.6
million. The Group has received government grants recognising the exceptional
nature of this development. As at the date of this document £8.6 million had
been invested in the Company by, inter alia, MTI Partners and Thomas Swan &
Company Ltd. Since May 2005, MTI Partners has invested a further £500,000 in the
Company and MTI Partners intends to invest up to £2 million as part of the
Placing.

 2. Information on the target market

The Company is focused on the professional large area displays market with
displays having greater than 60'' diagonal size. This market includes
information, advertising and entertainment displays for a wide range of
applications including retail and advertising, transportation, indoor venues and
financial exchanges.

Retail/Advertising

Screen displays are increasingly becoming a feature in retail spaces as
retailers and advertisers seek to entertain and inform customers and promote
their products closer to the point of sale. The launch of Tesco TV in 2004 was
one of a number of screen-based developments in the retail arena in the recent
past.

Transportation/Advertising

Rail and airport operators have been early stage adopters of LED and LCD/Plasma
screens and many modern rail terminals and international airports feature one or
more of these displays showing passenger information, news, sport and
advertising. Maiden Transvision have installed large LED displays at the major
UK rail terminals showing a mix of news, weather and advertising.

Indoor Venues

It is becoming more common to see large screen displays in use at trade shows
and in the lobbies of corporate headquarters and major hotels. One of the first
ITrans(R) screens to be sold, to an UK screen rental company, will be used at a
range of venues including at trade shows.

Financial Exchanges

Display screens are used on the floors of financial exchanges particularly as
their operations become more automated and computerised.

Whether it be in large stores or shopping malls with high ambient lighting, in
train stations or airport concourses with short viewing distances, ITrans(R) is
suitable for these environments, delivering high resolution and good colour
definition even at distances of less than 10m.

The worldwide market for professional large area displays is estimated currently
to be £1 billion, rising to an estimated £1.5 billion by 2010 (source: iSuppli
Large Screen Display Annual Report 2004). The Directors believe that ITrans(R)
can capture a significant and growing share of that market over the coming
years.

 3. Product

The Directors believe that the ITrans(R) product is the only high resolution,
high brightness display of its quality which provides a scalable solution in the
market for displays of 68'' to 300'' diagonal dimension. The Company has
investigated alternative design and manufacturing structures and believes that
ITrans(R)  offers cost advantages because it is made from mass-produced, low
cost LCD screens and backlight components which are tiled together seamlessly
using a proprietary optical magnifier, the ITrans(R) tile. This tile is
precision assembled from proprietary injection moulded parts.

ITrans(R) is an innovative solution to the problem of providing seamlessly tiled
large screen displays. ITrans(R) tiles are complex optical components, enabling
theoretically unlimited tiling of standard production LCD display panels to
create very large displays. An ITrans(R) tile comprises a passive array of
tapered light channels. On an LCD, plasma or LED screen, individual red, green
and blue pixels are used to create the image. In contrast, each channel in an
ITrans(R) tile takes light from a defined pixel area, mixing light from red,
green and blue sub-pixels to generate a solid colour on the front of the ITrans
(R) screen, thereby enhancing the image quality especially at close range. The
ITrans(R) channels are designed to be suited to injection moulding with the
intention that they will be made reliably in high volume at low cost. The
Directors believe that this is the key to achieving the price levels required to
become the technology of choice for the target market.

Each channel in the ITrans(R) tile magnifies and translates the pixel image so
that a coherent magnified image of the display panel is formed on the output
face of the ITrans(R). This is larger than the physical size of the
corresponding LCD display panel which enables ITrans(R) tiles to fit directly
together. Each individual LCD panel generates part of the complete image so that
the tiled display presents the complete image. The ITrans(R) tile is a
self-supporting structure so the image fills the entire output face. The output
face and sides are built to high accuracy to enable them to be fitted together
with no significant gap, thereby creating a continuous image.

ITrans(R) displays use industry standard collimating films to ensure light
enters the correct channel. The backlight has to provide high luminance and good
uniformity, but a variety of industry standard light sources can be used. A
range of front screens can be used at the output face of the ITrans(R) to tailor
the viewing angle to the application. Another key factor in the design is the
mechanical structure that supports each element in the tile and the tiles in the
display. This provides structural rigidity and ensures that all elements in the
structure remain aligned. The combination of an ITrans(R) tile, display panel,
drive electronics, backlight and local mechanical structure forms a complete
ITrans(R) module. These modules can then be assembled to form complete displays
with the addition of the display frame, case and power supplies. The display
structure requires careful design to ensure that elements remain properly
aligned over the operating temperature range. The structure also allows all the
active elements, including backlight lamps, electronics and LCD panels, to be
changed in situ during their working life. Based on discussions with potential
customers, the Directors believe that this is critically important in
professional markets.

The modular design of ITrans(R) enables displays of theoretically any size or
format to be built. This flexibility offers significant scope for innovative
design which will enable architects and advertisers to fit the shape of the
display to their requirements. This should provide an additional competitive
edge.

The simplicity of the ITrans(R) concept is a major benefit. It enables the
technology to be used with a wide range of display technologies, including OLED.
ITrans(R) technology will initially be used with standard LCD panels to leverage
of the huge investment that continues to be made into LCD technology. However,
the ability to use many different display technologies should make the ITrans(R)
even more attractive to potential partners.

 4. Sales and Marketing

The professional large display market is complex and requires bespoke solutions
to various display applications. The Group does not intend to provide the total
display solution, but has reached agreement with various partners who it is
envisaged will accomplish this. The Directors believe that this approach will
enable OEMs to become the natural route to market while STL focuses as on
penetrating an existing market with a more cost-efficient and higher quality
product. The Board has refined its international marketing approach to two
channels, sectored by application and territory:

  • Value Added Resellers (VARs)

A VAR would buy complete displays from STL. STL has developed relationships with
companies that sell, install and maintain large professional displays and in
certain circumstances supply content. Three agreements have been reached with
VARs entitling them to sell, install and maintain ITrans(R) displays, and
memorandums of understanding have been signed with three further VARs. Further
agreements are anticipated over the coming months.

  • Original equipment manufacturers (OEMs)

An OEM would buy ITrans(R) tiles from STL and build displays using the tiles.
STL has developed relationships with companies which provide complete display
solutions for specific applications. Those include Vossloh Information
Technologies to whom STL made its first sale and a number of other companies
whose interest was confirmed by letters of intent.

The Directors acknowledge that the OEM market will need to be developed by sales
of complete displays and that many OEMs will initially act as VARs.

Production capacity constraints are anticipated to be a major limiting factor to
sales until Q2 2006. STL has established contact with a large number of
companies and has responded to requests for quotations from 21 companies for
sales to the end of 2006, including companies in several European countries, the
Middle East, the Far East and the USA.

The Group plans to support its sales activities with a formal product launched
in London in July 2005. A European road show is planned for September 2005
followed by exhibitions in Dubai and Singapore.

STL will not provide front-line installation or maintenance services, but will
provide spares, training and other support to its VARs and OEMs.

The Directors believe that the above strategy will achieve the Group's desired
share of the global market whilst being assisted by a sales process enhanced by
sales representatives, direct sales, marketing and PR.

 5. Intellectual property

STL is seeking patent protection on key aspects of the ITrans(R) system which
the Directors believe will help to ensure that it can achieve good performance
and can be manufactured in volume and at low cost. In addition, STL has
generated a number of concepts that improve image quality, including intra-pixel
homogenisation and the elimination of systematic luminance variations across the
display and a novel backlight. The first four ITrans(R) patent applications were
filed with the UK Patent Office by May 2002. A further patent application was
filed in December 2003. These patent applications include claims to at least
fifteen inventions. All of these patents have now been published. STL also makes
use of three granted patent families from STL's earlier IP portfolio within the
ITrans(R) product family. ''ITrans(R)'' has been registered as a trademark in
the UK and trademark registrations have been applied for in the EU and the USA.

The ability to manufacture is a key part of the ITrans(R) intellectual property.
However, a number of these concepts are difficult to protect as patents because
of the burden of demonstrating discoverability. These will form part of the
know-how that is embedded within the production process. The production process
is an important element in the Group's business plan.

 6. Competition

The primary target market for ITrans(R) is for sunlit indoor applications.
Currently, the main technology used in this market is full colour LED but these
displays only offer relatively low resolution within the price range that the
market will withstand because the cost of LED displays is strongly dependent on
pixel size. 6mm LED products are the highest resolution that is commonly used.
The initial ITrans(R) product has 1.7mm pixels, offering at least twelve times
the number of pixels per unit area compared to 6mm LED and offers a brightness
level higher than that typical of 6mm LED at a comparable price per unit area.

It is often important for displays to be readable from both short and long
viewing distances. LED displays have a bright element surrounded by a large
black area. The active area is typically between only 15 per cent. and 25 per
cent. of the total area resulting in image degradation from close viewing
distances. In contrast, the bright area of ITrans(R) displays is 92 per cent. of
the total area resulting in higher quality images over all viewing distances.

Plasma panels have been used for information displays, often in areas such as
airports and railway stations. They currently have a maximum commercial size of
80'' diagonal and suffer from major problems with inadequate luminance and
burn-in. ITrans(R) uses LCD panels which, with an ITrans(R) proprietary
backlight, offers a large area brightness at least five times that of a typical
plasma screen.

LCD panels currently have a maximum commercial size of 65'' diagonal and a
typical brightness one quarter of what ITrans(R) provides. Rear projection cubes
are used in lower ambient lighting applications for tiled displays with a
typical brightness much lower than ITrans(R) provides.

However, the prices for these technologies for this market are typically in the
range of £10,000-£35,000 per square metre, excluding installation.

Industry experts consider that the maximum size for LCD or plasma that will
become  commercially available within the next five years is 102'' with a large
area brightness of less than one quarter of what can be achieved by ITrans(R).

 7. Current trading and future prospects

In the last three months the Group has responded to requests for quotations from
21 different companies in the USA, Europe and the Far East to a value of over £3
million. Of these, two have already been converted into firm orders for 80''
screens, one from a UK rental company and one from a distributor in Dubai. This
level of market interest was achieved prior to the formal product launch in July
2005.

The Group has been in discussion with a number of large display companies.
Toshiba have recently requested a loan display for evaluation in their
headquarters in Japan. The Group has also been asked to provide a rental display
for evaluation by Hong Kong Airport.

In the short term, the Directors believe that demand will considerably exceed
the Group's production capacity and therefore sales effort will be focused on
high profile applications to maximise visibility. One of the key reasons for the
fund-raising is to build the production capacity required to satisfy the
expected level of demand.

Based on the level of interest shown by potential customers and partners prior
to the product launch, the Directors believe that ITrans(R) has the potential to
attract a significant share of the worldwide professional large displays market.

 8. Reasons for the Placing

The net proceeds of the Placing available to the Group after the expenses of the
Placing and Admission are approximately £7.1 million. Approximately £3 million
will be used for investment in production equipment. Approximately £2.2 million
will be used for sales and marketing and to fund future expansion in staff and
facilities. The remainder will be used to fund the Group's working capital
requirements.

The Group also relies on an experienced management team and skilled workforce,
many of whom have worked with their respective companies for a number of years,
and the Directors believe that Admission will help the Group attract and retain
key employees whom the Group will be able to incentivise through the grant of
share options.

 9. Directors and proposed Finance Director

The Board currently consists of four directors. On Admission, Simon Barton will
be appointed as an additional director. Brief biographies of the Directors are
set out below.

Peter Smyth, Non Executive Chairman (aged 53)

Peter is non-executive chairman of Cardpoint Plc, an AIM listed independent
deployer of remote ATMs (cash machines) and mobile phone top-up terminals. He is
part time executive chairman of Cityspace Ltd, a UK company that develops and
operates urban digital networks based on technology and broadband infrastructure
for use in cities, providing customers and consumers with access to digital
services.

Peter is also a director and strategic adviser to Intellisign Ltd and its sister
company Roundstone TV Ltd, companies that create and distribute interactive
promotional and advertising content for retail based closed broadcasting
systems.

Previously, Peter spent twenty five years in the Out of Home (OOH) advertising
business including roles as finance director and then managing director of a
billboard advertising business in Ireland, followed by ten years as managing
director of More Group Ireland Ltd, the largest street furniture advertising
company in Ireland. He then moved to London where he was managing director of
More Group UK Ltd (now Clear Channel UK Ltd), market leading OOH advertising
business and then divisional director, Northern Europe of the international arm
of Clear Channel Communications, the US based global radio, live entertainment
and outdoor advertising business.

Tony Kellett, Chief Executive Officer (aged 52)

Tony Kellett took over leadership of STL in October 2001. He took a first class
degree in Engineering from Cambridge University in 1973 and has worked in a wide
range of technology based industries. Following early work with Rolls-Royce and
GEC, he spent ten years at Racal Defence, running 140 engineers and developing a
processor that won the Queen's Award for Technology. Tony joined Peek plc in
1993 as the Group Technical Director. In 1997 he moved across to run Peek's
operations in traffic electronics in the UK and Asia with a total of nearly 500
staff. He radically restructured these operations and led the turn-round of the
UK operation from a loss making company to one of the highest earners in the
group with an operating profit of £2.5 million. He refocused STL on ITrans(R)
and has defined and implemented the strategy to take it

from initial concept through to first commercial success.

Tom Jarman, Non Executive Director (aged 42)

Tom Jarman is a Partner with MTI Partners the largest shareholder of the
Company. MTI Partners is an early stage technology venture capital company
established in 1984, with a commitment to backing technology and market
opportunities together with a supportive approach to business building and exit.
Tom was an executive at CEO level prior to joining MTI Partners, most recently
having been Managing Director at Tellermate Cashroom Systems Ltd. (international
retail technology business), leading the business through a high growth phase
producing returns for a venture capital backer.

Tom joined MTI Partners in 2001 and has led three investments, including Chevin
Ltd, for which he managed the sale of the business in 2005 to a US trade
acquirer. He specialises in electronics and related businesses.

Tom Swan OBE, Non Executive Director (aged 63)

Tom is the Chairman and majority shareholder of Thomas Swan & Co Limited (a
shareholder of the Company) which has funded various research projects from
United Kingdom universities. He has been very active in assisting with the
conversion of technologies from development stage to commercial realisation. He
is currently Honorary Treasurer and Chairman of GP&FC, is on the Oxford
University Chemical Advisory Council and is Special Professor for Business and
Industrial Chemistry at Nottingham University.

Simon Barton, Proposed Finance Director (aged 42)

Simon Barton joined Screen Technology in July 2005 to take over finance
responsibilities, which have historically been fulfilled by David Cavet of
Thomas Swan & Co. Limited. It is intended that he will be appointed Finance
Director on Admission. Simon graduated in Natural Sciences from Cambridge
University before joining the offices of Price Waterhouse in London where he
qualified in 1990 with a 7th place in the Order of Merit in his final
examinations. Simon has extensive City experience working on a variety of UK and
international corporate finance transactions having joined investment bank S. G.
Warburg in 1990 and then moving to KPMG Corporate Finance in 1995 where he was a
Director working principally on technology, telecoms and media clients. In 2000,
he joined Conciera Limited an innovative new-media business and with the same
team was a founder director in 2003 of New LogicMarketing Limited an integrated
marketing services business that has seen rapid growth since its formation.

10. The Placing

The Company intends to raise approximately £7.1 million (net of expenses) by
issuing 12,613,804 Placing Shares at the Placing Price. The Placing Shares will,
following Admission, represent approximately 38.8 per cent. of the Enlarged
Share Capital. MTI Partners have invested £2 million as part of the Placing.

Pursuant to its obligations under the Placing Agreement, Charles Stanley has
conditionally placed the Placing Shares at the Placing Price with institutional
and other investors. The Placing has not been underwritten by Charles Stanley or
any other person.

The Placing Agreement is conditional, inter alia, upon Admission having taken
place by not later than 8.30 a.m. on 1 August 2005 or such later time and date,
being not later than 8.30 a.m. on 15 August 2005, as the Company and Charles
Stanley may agree. The Placing Agreement contains provisions entitling Charles
Stanley to terminate the Placing Agreement at any time prior to Admission in
certain circumstances. If this right is exercised the Placing will lapse.

The Placing Shares will rank pari passu with the Existing Ordinary Shares in all
respects including the right to receive all dividends declared or paid (after
the date of allotment of the Placing Shares) on the ordinary share capital of
the Company.

Application has been made to the London Stock Exchange for the Enlarged Issued
Share Capital to be admitted to trading on AIM. It is expected that Admission
will become effective and that dealings will commence on 1 August 2005.

11. Lock-in arrangements

Immediately following Admission, the Directors will be interested, in aggregate,
in 87,809 Ordinary Shares, representing approximately 0.2 per cent. of the
Enlarged Share Capital; MTIP Nominees Ltd will be interested, in aggregate, in
16,956,511 Ordinary Shares, representing approximately 52 per cent. of the
Enlarged Share Capital; and Thomas Swan & Co. Ltd. will be interested, in
aggregate, in 5,751,285 Ordinary Shares, representing approximately 17 per cent.
of the Enlarged Share Capital.

Under the terms of the Placing Agreement, the Directors, MTIP Nominees and
Thomas Swan & Co. Ltd. have undertaken to the Company and Charles Stanley that,
subject to certain exceptions:

  • in accordance with the AIM Rules (and subject to the exceptions permitted
    by the AIM Rules), for one year from Admission, they will not sell or
    otherwise dispose of, or agree to sell or dispose of, any of their
    respective interests in the Ordinary Shares held immediately following
    Admission; and

  • subject to certain exceptions for one year from the first anniversary of
    Admission, they will not sell or otherwise dispose of, or agree to sell or
    dispose of, any of their respective interests in such Ordinary Shares unless
    they shall have first consulted with the Company's nominated adviser and
    such disposal is effected through the Company's broker (provided the charges
    of such broker are competitive with other brokers).

DEFINITIONS

The following definitions apply throughout this document unless the context
otherwise requires:

''Act''                            the Companies Act 1985, as amended

''Admission''                      admission of the existing Ordinary Shares and 
                                   the Placing Shares to trading on AIM becoming 
                                   effective in accordance with the AIM Rules

''AIM''                            the AIM market of the London Stock Exchange

''AIM Rules''                      the rules for AIM companies and their 
                                   nominated advisers as issued by the London 
                                   Stock Exchange, as amended from time to time

''Articles''                       the articles of association of the Company

''Board'' or ''Directors''         the directors of the Company including Simon 
                                   Barton the proposed Finance Director

''Charles Stanley''                Charles Stanley & Co. Limited, the Company's 
                                   Nominated Adviser and Broker, which is 
                                   regulated for the conduct of investment 
                                   business in the UK by the Financial Services 
                                   Authority and is a member of the London Stock 
                                   Exchange 

''Code''                           the City Code on Takeovers and Mergers

''Combined Code''                  the Combined Code on Corporate Governance 
                                   published by the Financial Reporting Council

''Company'' or ''Screen            Screen Technology Group plc, or its 
Technology Group''                 businesses, as the context requires

''CREST''                          the relevant system (as defined in the CREST 
                                   Regulations) in respect of which CRESTCo is 
                                   the operator (as defined in the CREST 
                                   Regulations)

''CRESTCo''                        CRESTCo Limited

''CREST Regulations''              the Uncertificated Securities Regulations                          
                                   2001 (SI 2001/3755), as amended

''EIS''                            the Enterprise Investment Scheme and related 
                                   reliefs as detailed in Chapter III, Part VII 
                                   of the Income and Corporation Taxes Act 1988
                                   and sections 150A to 150C and Schedule 5B and 
                                   5BA of the Taxation of Chargeable Gains Act 
                                   1992 (as amended)

''Enlarged Share Capital''         the issued share capital of the Company 
                                   following Admission, comprising the Existing 
                                   Ordinary Shares and the Placing Shares

''Existing Ordinary Shares''       the 19,875,166 Ordinary Shares in issue at 
                                   the date of this announcement ''Group'' the                     
                                   Company and its subsidiaries

"Group"                            the Company and its subsidiaries

''London Stock Exchange''          London Stock Exchange plc

''MTI Partners''                   any one or more of MTI Limited Partnership, 
                                   MTI4 Limited

                                   Partnership, MTI4 ''B'' Limited Partnership, 
                                   MTI Partners Limited and MTIP Nominees 
                                   Limited 
                                                           
''Net Asset Value''                the net asset value of the Group

''Official List''                  the Official List of the UK Listing Authority

''Ordinary Shares''                ordinary shares of 5p each in the capital of 
                                   the Company

''Panel''                          the Panel on Takeovers and Mergers

''Placing''                        the conditional placing by Charles Stanley, 
                                   as agent for the Company, of the Placing 
                                   Shares at the Placing Price pursuant to the 
                                   Placing Agreement

''Placing Agreement''              the conditional agreement relating to the 
                                   Placing between (1) the Company, (2) the 
                                   Directors, (3) Charles Stanley, (4) MTIP 
                                   Nominees Limited and (5) Thomas Swan & Co. 
                                   Limited

''Placing Price''                  63 pence per Placing Share

''Placing Shares''                 12,613,804 new Ordinary Shares to be issued 
                                   pursuant to the Placing

''SARs''                           the Rules Governing Substantial Issues of 
                                   shares issued on behalf of the Panel

''Share Exchange Agreement''       the share exchange agreement dated 28 July 
                                   2005 between the Company and the then 
                                   shareholders of STL

''Share Scheme''                   the Share Scheme of the Company

''Shareholders''                   holders of Ordinary Shares from time to time 
                                   ''STL'' Screen Technology Limited, a wholly 
                                   owned trading subsidiary of the Company

''United Kingdom'' or ''UK''       the United Kingdom of Great Britain and 
                                   Northern Ireland

''UK Listing Authority''           the Financial Services Authority acting in 
                                   its capacity as the competent authority for 
                                   the purposes of Part VI of the Financial
                                   Services and Markets Act 2000

''VCT''                            a venture capital trust for the purposes of 
                                   section 842AA and Schedule 28B of the Income 
                                   and Corporation Taxes Act 1988


GLOSSARY OF TECHNICAL TERMS

collimating                        shaping light into a beam

ITrans(R)                          a technology for unlimited seamless tiling of 
                                   displays using nonimaging optics

ITrans(R) tile                     the optical faceplate built using moulded 
                                   ITrans(R) parts

LCD                                liquid crystal display

LED                                light emitting diode

OEM                                original equipment manufacturer

OLED                               organic light emitting diode

pixel                              picture element - a pixel is the smallest 
                                   resolvable special information element on a 
                                   display screen. It consists of a single triad
                                   of dots (red, green and blue) for most 
                                   displays

PLL CD                             photo-luminescent LCD

resolution                         the number of pixels available for 
                                   information display

seamless tiling                    building a display from modules with no 
                                   frames or mullions between the modules

VAR                                value added reseller


                      This information is provided by RNS
            The company news service from the London Stock Exchange