Acquisition

Petards Group PLC
09 August 2005


                 Petards Group plc ('Petards' or 'the Company')

                            Acquisition of PI Vision



Petards, the AIM listed developer of advanced surveillance systems, announces
that it has acquired the business and certain assets of PI Vision Limited and PI
Vision Inc (together 'PI Vision') for a maximum total consideration of £1.64
million.  PI Vision are leaders in scaleable networked digital video recording
systems. PI Vision's Universal Video Management System ('UVMSTM'), which was
introduced in 2004, features advanced IP and analogue camera recording,
distributed architecture, camera mapping and image replay functions which form
the backbone to new or existing CCTV systems. The system provides high end
recording performance, easy and powerful evidence delivery and full scalability.
PI Vision was awarded the DTI smart award for technology innovation in 2004.



PI Vision's UVMSTM system will integrate closely with Petards' Advantage command
and control software for complex CCTV installations and provide extended
functionality. Both businesses will benefit from the extended reference sites
available to them.



In year ended 30th April 2005, the business and assets being acquired generated
a gross profit of approximately £0.9 million on sales of approximately £1.9
million.  Its systems are installed by government departments, transport
operators, museums, casinos, prisons and banks. PI Vision Limited, is based in
Surbiton, Surrey and PI Vision Inc in Florida, USA.



In consideration for the acquired business and assets, Petards will pay an
initial cash consideration amounting to £470,000. In addition, Petards will pay
up to £170,000 in cash, conditional upon the securing of certain orders in 2005,
and will pay in 2006 an amount equal to the sum by which PI Vision's Gross
Profit exceeds £1.6 million and a further conditional sum in 2007.  The payments
to be made in 2006 and 2007 cannot exceed £1 million in aggregate and are
payable, at the vendors' option, either in cash or up to 50% in new Petards
shares at the prevailing market price.



David Hayes, Chief Executive of Petards said: 'This is an exciting opportunity
for Petards to access the rapidly growing network video recording market and we
believe that the UVMSTM product has the potential to become a leading industry
platform.  The acquisition will also enable us to cross-sell our Advantage suite
of software into new markets and is significant in that it gives us an
established base from which to sell our solutions in North America where PI
Vision has a strong sales force and many valuable reference sites.'



David Myers, Managing Director of PI Vision Limited who will join Petards
Limited as Sales and Marketing Director said: 'By being part of Petards we will
be able to capitalise on the opportunities for the sale of the new UVMSTM
software at a time when video recording for CCTV security systems is very
topical and there is an increasing trend from earlier generation tape-based
systems to networked digital systems with all their benefits.'



The Company's trading in the first six months of 2005 was in line with
expectations. The Board expects in September to be able to make a further
announcement to that made on 4th July 2005 concerning the discrepancies in the
accounting for long-term contracts, at which time the audited 2004 accounts will
be re-issued and the interim results for the period ended 30th June 2005 will be
released.



For further information:

Paul McManus, Binns & Co - Tel: [phone], Mob: [phone]

Andy Wonnacott, Finance Director, Petards Group plc - Tel: [phone]


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