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Vema N.V. (VEMD)


Tuesday 30 April, 2002

Vema N.V.


Vema N.V.
30 April 2002

Embargoed till 0700 hours, 30th April 2002

                      Vema N.V. ('Vema' or 'the Company')

                              Disposal of Business

Vema has today announced the disposal of its trading business to the Assa Abloy
AB Group ('Assa Abloy') for approximately €10 million (£6 million) cash.

Vema is a specialised distributor of security products using a consultancy based
approach to advise customers on the best solution to their installed security
locking needs. Vema is a major distributor for Assa Abloy's subsidiary, Fritz
Fuss Gmbh & Co ('Eff Eff'), a leading lock manufacturer based in Germany.

Since the introduction of the Euro we have seen increases in competitive
pressures, and the Board believes that it is prudent to dispose of the business
now for what they consider to be a good price. Eff Eff has direct access to
markets other than The Netherlands and the Directors therefore believe this will
assist the Vema business to expand as originally intended. The disposal of
Vema's trading business will provide the Directors with the cash resources to
pursue other business opportunities which they believe will return better
shareholder value.

In order to facilitate the sale of the Vema business to Assa Abloy, Vema has
incorporated a new private Dutch company, Vema Sales B.V. Vema has transferred
the majority of its trading assets and liabilities and its subsidiary, Vema
Belgie BVBA, (total value €1.6 million (£1 million)) to Vema Sales B.V for a
consideration of €10 million (£6 million). Vema will be responsible for a
potential tax liability arising on the transfer of approximately €2.9 million
(£1.8 million), and its own expenses of the transfer.

Assa Abloy has entered into an agreement to acquire the new subsidiary Vema
Sales B.V. for a total consideration of approximately €10 million in cash,
payable in two tranches, being €9 million on completion with the balance of 10%
held in an escrow account to be paid after the finalisation of the audit for the
year end 30 April 2002 subject to the agreed value of net assets at the date of
sale and profit for the year then ended having been achieved.

The Company announced its unaudited interim results for the six months ended 31
October 2001 on 21 January 2002, which showed a pre-tax profit of €565,000
(2000: €379,000 on a pro forma basis) on turnover of €4,720,000 (2000:
€4,294,000 on a pro forma basis).

The Directors are at an advanced stage of negotiation for the acquisition of
another company in the security sector and it is hoped that a further
announcement will be made shortly. The Directors continue to believe in the
security sector and wish to utilise their expertise in this sector.

For further details please contact:
Maurice Dwek - Chairman                       Tel: 01737 78 88 00
Vema N.V

Adam Reynolds/Damian Hamill                   Tel: 020 7735 9415
Hansard Communications                        [email protected]

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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