Disposal

Newmark Security PLC
31 October 2003


                              Newmark Security plc
                          ('Newmark' or the 'Company')

                        Disposal of Drion Security S.A.

In September 2002, Newmark completed the acquisition of Grosvenor Technology
Limited, an established access control and security management systems company.
The Board also set out to pursue a strategy to create an integrated high value
security solutions group in both mechanical and electronic products.

The successful integration of Grosvenor Technology and this strategy has led to
significant restructuring in Newmark in order to reduce costs. In view of this,
the Board has agreed terms for the disposal of Drion Security S.A. ('Drion
Security'), part of its asset protection division based in Belgium.

The financial performance of Drion Security has not met the expectations of the
Board over the last two years, with turnover in the last financial year
remaining at the same level as the previous year and losses of £624,000 incurred
for the year to 30 April 2003. This was largely due to the lack of both an
export order and a breakthrough in the commercial sector. Turnover in its core
Belgium banking sector was in line with expectations and losses have continued
in the first six months of the current financial year.

With losses incurred by Drion Security for the last two years and the loss of a
major export contract, the Board have decided to sell Drion Security to the
former Chief Executive of Newmark, Sasson Rajwan. Newmark has agreed to the
disposal of Drion Security for a maximum deferred consideration of €500,000,
payable in three annual instalments commencing in 2006 dependent upon Drion
Security achieving a certain level of profits after tax in each of the financial
years ending 30 April 2006, 30 April 2007 and 30 April 2008. As at 30 April
2003, Drion Security had net assets of €1,070,000. It is anticipated that any
proceeds from the disposal will be used for working capital purposes.

The independent Directors of Newmark, having consulted with their Nominated
Adviser, Seymour Pierce Limited, consider the terms of the transaction are fair
and reasonable insofar as shareholders are concerned.

Enquiries:

Newmark Security plc  Tel: [phone]
Maurice Dwek, Chairman
Brian Beecraft, Finance Director

Seymour Pierce Limited Tel: [phone]
Mark Percy/Jeremy Porter



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