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: 020 7355 0070 Maurice Dwek, Chairman Brian Beecraft, Finance Director Seymour Pierce Limited Tel: 020 7107 8000 Mark Percy/Jeremy Porter This information is provided by RNS The company news service from the London Stock Exchange ND DISWUGMCUUPWGRU