Pre Close Trading Update

RNS Number : 0867X

TG21 Plc

19 June 2008

TG21 plc

('TG21', 'the Company' or 'the Group')

Pre Close Trading Update

TG21, the vehicle installation service provider supplying public transport CCTV and other monitoring systems, today issues the following pre-close trading update:

Further to the Company's AGM trading update on 13 May 2008, the repositioning of TG21 into public transport CCTV and monitoring systems has continued to progress well and the Company intends to invest more resource in this business in the second half of this year.

The Company has, however, seen a further decline in its legacy audio insurance replacement business and the initial growth in its embryonic black box motor insurance business in the first quarter has since stabilised significantly below anticipated volumes.

The Company anticipated that sales in the mature audio insurance replacement business would fall again significantly this year in line with the general decline in the in-car audio insurance replacement market. However, sales in this sector for the second quarter of the year have fallen more rapidly than projections and the Company believes this trend will continue. Moreover, demand for black box installations for the fleet insurance market is falling well short of the volumes forecast at the start of the year by the insurance industry and the Company now does not expect sales to grow in the second half of this year.