Trading Statement

Quadnetics Group plc

28 June 2007

Trading Update - Pre-close Statement

Quadnetics Group plc is pleased to provide an update on trading
following the end of its financial year on 31 May 2007.

The Company's current view is that its consolidated profit before
tax, exceptional items, amortisation of goodwill and share-based
payment costs for the year will be slightly ahead of market
expectations. No exceptional costs are anticipated at this stage.

Within this overall position, the Group experienced plusses and
minuses in trading across its various business areas. Most pleasing
was the performance of Synectics' digital surveillance solutions in
the North American casino market, where rapid growth in turnover (to
approximately US$9 million) and significant profits ahead of plan
were achieved for the year. The positive momentum in this area is
continuing.

Contributions were below expectations in Synectics' Security Networks
business outside North America, and in Quadrant Security Group's CCTV
security systems businesses. However, development of the next
generation of Synectics' products relevant to both these areas is
nearing completion prior to market launch in early autumn this year
as planned. Indications of the market potential of these products
continue to look promising.

Contribution from the managed security services business area within
Quadrant Security Group more than offset these shortfalls. It
benefited from higher than anticipated profits achieved in managing
the run-off of large, low margin historical contracts as the business
is transitioned to a higher margin business model where it provides
more comprehensive outsourced security management to its multi-site
retail clients. The Company believes potential in this new area is
substantial, particularly in its ability to generate contracted
recurring revenues, but it will require investment in systems and
personnel. As a result, profits in the next two years from this area
of QSG's business are expected to be lower than in the year to 31 May
2007.

Overall, the Group's outlook continues to be positive and
expectations for consolidated results in the new financial year just
started remain unchanged.

Consolidated net cash at 31 May 2007 was £5.6 million, compared with
£8.9 million at the previous year end. Approximately £2.4 million of
this net cash outflow resulted from the purchase of a new building to
accommodate the growth and consolidation of Synectics activities in
Sheffield. It is expected that most of the cash impact of the
purchase will be reversed in the current year, once a sale and
leaseback of the building is agreed and completed.

Preliminary results for the year to 31 May 2007 are expected to be
released on or around 5 September, somewhat earlier than in previous
years.



For further information, please
contact:

Quadnetics Group plc                         Tel: [phone]
(www.quadnetics.com)
Russ Singleton, Chief Executive  Email: [e-mail]

Brewin Dolphin Securities                   Tel: [phone]
Neil Baldwin

Buchanan Communications                     Tel: [phone]
Tim Anderson/Isabel Podda/Simon        Email: [e-mail]
Potter



ENDS

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