Trading Update and Investment

TG21 Plc
26 July 2006


For release: 26 July 2006

                             TG21 plc ('the Group')

                    Trading Update and Strategic Investment

TG21, the niche provider of business solutions to the automotive, public
transport, cellular and insurance markets, today issues a further trading update
on its legacy Distribution and Services businesses. It also announces a
strategic investment in Cyberlyne Communications Limited, a specialist in the
supply and installation of on-board CCTV for public transport vehicles.

Trading Update

Further to our AGM trading update in May sales in the second quarter for our
Distribution businesses have continued the trend from the previous quarter, with
the majority of sales coming from low margin portable satellite navigation
systems. As previously indicated, this lower margin sales mix is impacting the
profitability of the business. Accordingly, we are taking steps to achieve
further overhead savings and are examining exit strategies for some sectors of
this business.

We have also seen disappointing sales in our Services businesses in the second
quarter. Despite our appointment as a black-box installation contractor to a
number of insurance companies introducing Pay As You Drive ('PAYD') insurance
schemes, delays in these projects which are beyond our control, are expected to
have a significant impact on the profitability of this business in the current
year.

Consequently after taking into account reorganisation costs in our legacy
Distribution business and the investment already made in infrastructure to
support the PAYD services business, we are expecting our Distribution and
Services businesses to make only a small operating profit contribution for the
year to December 2006.

On the positive side, our public transport vehicle CCTV business, 21st Century,
continues to make good progress and is expected to continue to make a positive
contribution to operating profit in the second half, even after taking into
account the investment in new technologies.

We are pleased to announce today that we have entered into a strategic alliance
with one of the other major CCTV systems suppliers in this sector which will
allow us broaden our customer and product base.

Strategic Investment in Cyberlyne Communications Limited

TG21 has entered into a loan and share option agreement with Cyberlyne
Communications Limited ('CCL').

Under the agreement TG21 has made a loan of £430,000 to CCL bearing interest
from 1 January 2007 at 9.3%. In parallel with the loan agreement, CCL has
granted an option to TG21 to acquire 50% of CCL's share capital for a nominal
value of £100. TG21 has also been granted a second option to acquire the
remaining 50% of the share capital for £1,000,000 if TG21 chose to exercise the
option before 30 April 2007 or the higher of £1,000,000 in cash or the cash
equivalent of five times CCL's 2007 operating profit before management charges
if the option is exercised after completion of the CCL's 2007 accounts.

The consideration for both options is to be paid in cash and both options will
lapse if not exercised by 30 June 2009. TG21 will provide management services to
CCL in the interim period before the second option is exercised and in return
will receive a monthly fee of £3,000 plus a 100% share of CCL's 2007 profit. The
profit share is to be credited back in the event that TG21 do not take up the
second option in 2008.

CCL is a private company based in the North East of England. It specialises in
the supply and installation of on-board CCTV for public transport vehicles.
CCL's customers include First Bus, Go-Ahead and Translink. Combining CCL with
21st Century would significantly strengthen TG21's presence in the public
transport CCTV market.

Peter Ward, Chairman of TG21, commented:

'The performance of our legacy businesses is disappointing, but reflects the
fact that they are operating in mature markets. However they are still very cash
generative and this has allowed us to finance our expansion into markets with
good growth opportunities such as public transport CCTV. The link up with CCL is
particularly significant in giving us access to a wider customer base in the
public transport sector and an own brand product which we believe will leverage
our investment in 21st Century.'

TG21 will announce its interim results for the six months to 30 June 2006 on 21
August 2006.

                                      Ends

For enquiries please contact:

Peter Ward
Chairman
or
Wilson Jennings
Finance Director

020 8710 4000

Notes to editors

About TG21

TG21 plc is a niche provider of business solutions to the automotive, public
transport, cellular and insurance markets. It operates via 3 core divisions:
Public transport CCTV, Services & Distribution.

TG21 holds a 75% stake in 21st Century, a fast growing provider of CCTV and
Black Box recording systems to the UK public transport sector. This Black Box
technology, pioneered by the aviation industry, offers features above and beyond
standard CCTV. 21st Century is the preferred supplier to Arriva UK Bus

In the Services division, TG21 provides Insurance Services such as claims
handling and fulfillment, related to theft of in-car entertainment systems. TG21
provides a professional call centre and engineer response. Major customers
include Royal Bank of Scotland and Norwich Union. TG21 also provides Technical
Services, which include mobile vehicle installation of hands-free mobile phone
kits for Vodafone.

TG21's Distribution division focuses on the distribution of automotive and
motorcycle products to the UK specialist aftermarket, to include security,
speed-camera warning, audio, navigation, multi-media systems.

TG21 employs around 250 staff with offices in Mitcham, Tamworth, Blackburn and
Runcorn.

About Cyberlyne Communications Limited

CCL provides CCTV solutions to bus operators, local authorities and
manufacturers. It is currently undertaking work for First Group (Glasgow and
London), Translink (Northern Ireland) and Go-Ahead (North East). CCL has
supplied in excess of 6,000 CCTV systems to the public transport market since
its formation in 1998 and has designed its own digital recorder which is
assembled at its head office in Bishop Auckland.





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