Disposal

TG21 Plc
30 October 2007



Embargoed Release: 0700 hrs 30 October 2007


                        TG21 plc ('TG21' or 'the Group')

 TG21 EXITS LOW MARGIN DISTRIBUTION BUSINESS AS PART OF ITS CONTINUED STRATEGIC
                                 REPOSITIONING


TG21, the vehicle installation service provider supplying public transport CCTV
and other monitoring systems, today announces that its subsidiary company, Toad
(UK) Limited ('Toad' or 'the Company'), has agreed to dispose of its 'Sextons'
division which distributes in-car entertainment and satellite navigation
systems. The Sextons name and its inventory are to be sold to Car Electronics
Limited ('CEL'), a private company based in Leicester. The proposed disposal is
due for completion on 31 October 2007.

Sextons generated sales of around £4.5m in the six months to 30 June 2007 but
the sector has suffered declining margins in recent years and the division made
a loss in the period of £0.1m.

CEL is to pay a cash consideration linked to the stock holding of the division
on 31 October and expected to be around £0.6m. Toad will incur reorganisation
costs of £0.2m and will make an exceptional provision for remaining obsolete
stock of £0.2m. In addition the Company will make a provision for onerous leases
on vacant premises of £0.1m. The net cash proceeds will be applied to reduce the
Group's bank borrowing.

Peter Ward, Chairman of TG21, said:

'We have clearly stated our strategy to exit at the earliest opportunity from
our low margin legacy businesses to allow us to focus on those areas where we
anticipate the higher levels of growth, namely becoming a vehicle installation
service provider with our 75% subsidiary, 21st Century, supplying public
transport CCTV and other monitoring systems.

'As a private family company with a successful distribution business already
operating in this sector, CEL are well placed to leverage Sextons as a bolt-on
business to their existing operation and we wish them every success. For our
part, the disposal will allow us to liquidate stock and, while there are
inevitably exceptional costs which will arise out of exiting this business, many
of these are not cash impacting and consequently we anticipate a further
reduction in our net debt at the year end.

'We look forward to concentrating our management and financial resources on
further developing our vehicle installation and public transport offering.'

                                     -Ends-


For Further Information:

TG21 plc                         Nick Grimond, CEO               020 8710 4000
Hogarth Partnership Limited      Barnaby Fry/Sarah Richardson    020 7357 9477
Daniel Stewart & Co plc (Nomad)  Graham Webster                  020 7776 6550

Notes to editors

Launched in 1993, the Company began as Toad plc and was focused on the
distribution of in-car entertainment systems and vehicle security products.
Under the stewardship of Chairman Peter Ward, former Chairman and CEO of Rolls
Royce Motors and Cunard Line, who joined the board at the end of 2001, TG21's
strategy has been to reposition itself away from its legacy businesses into
markets with better growth potential while leveraging its core strengths -
nationwide field force of vehicle electrical engineers, call centre and
distribution facilities.

In line with this strategy, in 2005 the Company took a controlling stake in 21st
Century Crime Prevention Services Ltd ('21st Century'), the preferred supplier
of on-board CCTV systems for Arriva UK Bus. 21st Century has pioneered the use
of WiFi with on board CCTV systems and was the first company to successfully
launch automatic video downloads and a bus CCTV monitoring system (HeartbeatTM).
In addition to Arriva UK Bus, clients of 21st Century include Arriva
Scandinavia, Go-Ahead Group, Metroline, Kinch Bus and ACIS. In 2006 the Company
bolstered this division, with a strategic investment in another bus CCTV
business, Cyberlyne Communications Limited ('CCL'). This investment was made by
way of a loan of £430,000 to CCL and in parallel with this loan agreement CCL
has granted an option to TG21 to acquire the whole of its share capital.
Recently the Company has completed a number of installations for a pilot 'pay as
you go' motor insurance scheme with a major insurance company and has several
other similar trials in progress. The Company was awarded these opportunities on
the back of the long and valued relationships which it has developed in this
market through its insurance replacement services.

Headquartered in Mitcham, the Group also has leased offices in Blackburn,
Runcorn and Tamworth and employs around 170 staff.










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