Disposal

Vislink PLC 16 December 2002 Monday 16th December 2002 Vislink plc Disposal of certain trading assets of American Auto-Matrix Vislink plc ('the Group') announces the disposal of certain trading assets of American Auto-Matrix ('AAM'), a division of Vislink, Inc ('Vislink') to a company specifically formed by the management ('the Purchaser'), for a total consideration of $2.02 million (£1.28 million). In addition, the cash utilised in the business of $0.27 million (£0.17 million) has been retained by the Group. The Business AAM is based in Pittsburgh USA and is engaged in the business of designing, manufacturing and selling of automated control systems, accessories and related products to the commercial and industrial heating, ventilation and air conditioning industry. AAM had also taken over the manufacture and distribution of the Group's multi media server product range, AIMMS. Consideration details The consideration has been satisfied by the payment in cash of $1.35 million, the issue of a one-year promissory note for $0.08 million, a retention over certain longer term debtors of $0.09 million and 30,000 class A units in the Purchaser valued at $0.50 million. These class A units will be held as a trade investment for sale in due course. In addition the freehold land and buildings currently occupied by AAM have been retained by Vislink and will be leased to the Purchaser under a commercial lease arrangement. It is the Group's intention to realise the current book value of the property of $1.44 million (£0.91 million) by way of a future sale. The assets have been sold at their current net book value but the associated sale costs and provisions made against a full realisation of elements of the deferred consideration, will result in an estimated exceptional loss on disposal of £ 0.30 million. Application of Proceeds The proceeds will be used to reduce the Group's net debt. Discontinued Activities The decision was taken earlier this year to seek a buyer for the business of AAM when the impact of the significant slowdown in the Building Controls sector of the US market meant that the high costs associated with introducing Access Control products and the launch of the AIMMS multimedia server (previously developed by Active Imaging) into the US market, would not provide an adequate return for the Group. As a result of this disposal, AAM and the costs of the AIMMS product launch will be reported in the Group's 2002 accounts as discontinued businesses, incurring an estimated operating loss of £0.60 million. Continuing Activities The Group's continuing businesses which are the US and UK Broadcast Businesses together with our specialist CCTV business Hernis, are continuing to perform in line with market expectations. -Ends- For further information please contact Ian Scott-Gall 01488 685500 Chief Executive, Vislink plc James Trumper 01488 685500 Group Finance director, Vislink plc This information is provided by RNS The company news service from the London Stock Exchange