Trading Statement

Quadnetics Group PLC 08 July 2003 8 July 2003 Trading Statement Quadnetics Group plc, a leader in the design, integration and control of advanced CCTV and networked video systems, is providing the following trading update as it goes into its closed period. Having reviewed the draft unaudited management accounts for the financial year recently ended, the Board believes that the Group's profits for the year will be in excess of current market expectations. The Board expects that the Group's consolidated profit before tax for the year to 31 May 2003 will not be less than £1.35 million on sales of approximately £20 million. A full preliminary announcement of results will be made as usual in September. Peter Rae, Chairman, said: 'As anticipated at the time of our interim results, the Group has continued to benefit from strong growth in both sales and margins, especially in the area of large-scale digital CCTV security systems. A number of important product development issues were successfully resolved during the year, and we have growing confidence that Quadnetics' digital video network and control products, and systems integration solutions, are at the technical forefront of a rapidly evolving industry. A significant factor in our growth plans is the rate of adoption of our new patent pending Time Lapse Later (TLL) powered digital CCTV recording systems, which initially store images from all cameras in high quality broadcast format, then progressively time-lapse for long term archive in order to reduce overall storage requirements and cost. Although it is too early to predict the outcome, a good pipeline of existing and potential new business continues to give the Group real momentum into the current year. Subject to the obvious caveats, we do expect further progress in results.' 8 July 2003 For further information please contact: Quadnetics Group Russ Singleton (Chief Executive) 01527 850 080 e-mail: r.singleton@quadnetics.com Brewin Dolphin Securities Neil Baldwin 0113 241 0130 Media enquiries: Bankside Tel: +44 (0) 20 7444 4140 Julian Bosdet / Peter Curtain e-mail: peter.curtain@bankside.com This information is provided by RNS The company news service from the London Stock Exchange

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