Capital Reduction

Quadnetics Group PLC
06 March 2003

Quadnetics Group PLC (the 'Company')
Thursday 6 March 2003

Capital Reduction

Quadnetics Group plc, a leader in the design, integration and control of
advanced CCTV and networked video systems, announces that confirmation of the
capital reduction approved by shareholders on 12 February 2003 was received from
the High Court yesterday. The capital reduction will become effective once filed
at Companies House in the next few days.



The capital reduction will allow the Company to utilise its capital redemption
reserve and share premium account to eliminate fully the deficit on the profit
and loss account, enabling dividends to be paid out of future profits credited
to that account.



Commenting on the confirmation the Chairman, Peter Rae said 'In my statement
with the Annual Report in October 2002 I reported that the Board intended to
restructure the Company's reserves to enable dividend payments to be
recommenced. I am therefore pleased to report that this has now been achieved
and I look forward to being able declare a dividend in the future.'







ENDS





For further information please contact:


Quadnetics Group plc
Peter Rae, Chairman
Nigel Poultney, Finance Director                                                01527 850 080


Brewin Dolphin Securities
Neil Baldwin                                                                    0113 241 0126



Media enquiries:


Bankside Consultants Limited
Ariane Vacher                                                                   020 7444 4143




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