CMG Croma Grp

RNS Number:3397V
Croma Group PLC
08 December 2005



                                                                 8 DECEMBER 2005

                                CROMA GROUP PLC
                            ("Croma" or "the Group")

               CONTRACTS EXCHANGED FOR SECOND OF TWO ACQUISITIONS
                                      AND
                                 TRADING UPDATE

The Board of Croma, the specialists in the design, development and production of
overt and covert surveillance, security and defence related products, is pleased
to announce that following the announcement on 1 December of its final results
to June 2005, and the exchange of contracts for the first of two acquisitions,
the Company has now exchanged conditional contracts for the second of the two
proposed acquisitions. This exchange allows it to adopt further due diligence on
the target company.

Initial payment on completion, as with the previous proposed acquisition, will
comprise of a combination of cash and Croma shares at 6.5p or the mid-market
quote at the time of completion, whichever is the highest. The payment will be
by way of performance related earn-out. Completion of the acquisition is
expected during January following the completion of the due diligence.

The proposed acquisition, which cannot be named due a confidentiality clause, is
a specialist company operating in the field of biometric identification and
access-control solutions.

Trading Update

Current trading is positive with the period July to October of the current year,
showing an increase of 32% for the same period of the previous year. This is a
result of the increased order intake following successful introduction of new
products and the expansion of the customer base.

John French, Chairman & Chief Executive of Croma said:"This proposed acquisition
complements the expanding range of products and services offered by the Group to
the overt, covert surveillance and defence related sector. It reaffirms the
intention of the Group to consolidate its position in the sector through a
combination of core growth and acquisitions."
                                    
                                    --ENDS--

Enquiries:

Croma Group plc
John French, Chairman & Chief Executive                    Mobile: 07836 722 482

Bishopsgate Communications Ltd.                               Tel: 020 7430 1600
Maxine Barnes
Nick Rome


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

END
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