Subsid's Disposal

Quadrant Group PLC
11 August 2000

                      Quadrant Group plc
                               

Quadrant  Group plc ('Quadrant') announces that its subsidiary
Quadrant  Video  Systems plc ('QVS') has  reached  conditional
agreement  for  the  disposal of QVS' audio  visual  equipment
systems  and services business ('the AV Business') to  members
of the AV Business' management team ('the Purchasers').

The  AV  Business  was transferred into a subsidiary  company,
Quadrant Visual Solutions Limited ('VSL') with effect  from  1
June  2000, and QVS is now selling 80.65% of the issued  share
capital  of VSL for £100,000, which is approximately equal  to
the current net asset value attributable to these shares.   In
addition,  VSL has issued to QVS £200,000 of 7%  secured  loan
notes  (repayable over 5 to 7 years) and will retain an amount
of debt at completion estimated to be £500,000.  Following the
disposal, QVS will retain a 19.35% share holding in VSL, which
the  Purchasers will have the option to acquire at fair  value
in certain circumstances. The proceeds of the disposal will be
used  to  provide  additional funds for  the  Group's  working
capital requirements.

Because  one of the Purchasers, Mr Paul Gregory, is a director
of  QVS, the disposal is conditional on approval by Quadrant's
shareholders.   A  circular setting out full  details  of  the
proposed  transaction and giving notice  of  an  extraordinary
general meeting of shareholders will be posted shortly.

In  the year to 31 May 1999, the AV Business made an operating
loss  of  £281,000 on sales of £6.1 million, and in  the  half
year to 30 November 1999 made an operating loss of £78,000  on
sales of £2.8 million.

Including  the effect of asset write-downs in QVS, which  have
no  cash impact, the proposed disposal is expected to generate
a loss on disposal of approximately £450,000 (including costs)
within Quadrant's consolidated accounts.

David Coghlan, Chief Executive of Quadrant, said

'As  set  out  in  the  Company's recent annual  reports,  the
performance  of  the  AV Business has been unsatisfactory  for
some   time.   Whilst  major  restructuring  has  considerably
improved  its  position and prospects,  the  AV  Business  has
continued  to divert management attention from the  profitable
CCTV  security  core business within QVS.  The Board  believes
that  this transaction will allow Quadrant to capitalise  more
rapidly  on  the  potential for growing profits  in  its  CCTV
activities'.