Trading Statement

Reliance Security Group PLC
15 October 2004


For immediate release
                                                                 15 October 2004

                    Reliance Security Group plc ('Reliance')

                                 Trading Update


The Directors of Reliance are pleased to provide an update, prior to the
commencement of the close period, on the Group's trading performance for the six
months to 29 October 2004.

The Group's performance in the first half of this year is likely to be in line
with the Directors' expectations.

In security services, market conditions have remained challenging, particularly
in manpower security, in the period leading up to regulation of the private
security industry. We are continuing to apply our capabilities in management and
manpower, mobile response, electronic security and remote surveillance and are
harnessing new technologies to develop innovative, cost-effective security
solutions for our customers. We continue to believe that, when fully
implemented, regulation will benefit the industry and its customers and,
accordingly, we are confident that market conditions will improve in the long
term.

The market for facilities management and outsourced business processes remains
dynamic, demand being particularly strong in the public sector. After early
teething problems, the mobilisation of the 7-year, £150 million contract to
provide infrastructure and services for prisoner escorting and court custody in
Scotland is proceeding smoothly, and the latest phase of roll-out, in Edinburgh
Lothian and the Borders has been successfully implemented. We have also
successfully mobilised a similar £250 million contract in South Wales, the
Midlands and the West of England, service delivery having begun, on schedule, on
29 August. As announced on 4 October, we have been selected, in partnership with
HBoS plc and Equion Ltd, as the Preferred Bidder for a 25 year, £1.5 million per
annum PFI contract for Cleveland Police Authority and have also been awarded a 5
year, £2 million per annum contract for the Youth Justice Board.

In the first half of this year, the Group's cash generation has been better than
expected and the Group's financial position, already strong at the end of the
last financial year, has strengthened further.

The Directors expect to announce interim results for the six months to 29
October 2004 on Thursday 2 December.

The Directors also announce that Reliance Secure Task Management Limited
('RSTM'), a wholly-owned operating company, has been unsuccessful in its bid to
renew its electronic monitoring services (offender tagging) contract in the
south of England. The existing contract, which will generate turnover for RSTM
in the current year of approximately £18 million, expires on 31 March 2005.

This development will not materially affect the Group's results for the current
financial year and the challenge for the following year will now be to secure
additional replacement business from other sources.


Note:

Reliance is an established market leader in the provision of contract security,
facilities management and support services and in business process outsourcing.
Reliance employs over 12,000 people from a network of offices throughout the UK.


Enquiries:

Brian Kingham
Chairman                         020 7730 9716

Jeremy Simon
Company Secretary                01895 205002



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