RNS Number:8591X
Croma Group PLC
03 February 2006


                                                                 3 FEBRUARY 2006

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

                   ACQUISITION OF VIGILANT (SCOTLAND) LIMITED

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 today the acquisition of specialist asset protection company
Vigilant Security (Scotland) Limited ("Vigilant").

As well as broadening the Group's product range and services, the addition will
enhance Croma's cross-selling capabilities.

HIGHLIGHTS

   *Croma to acquire Vigilant for an initial payment of #804,000 to be
    satisfied in cash and the issue of 8,907,692 new ordinary shares;

   *This is the first of two acquisitions referred to in October's trading
    statement;

   *Vigilant will operate as a stand alone, but wholly owned subsidiary of
    Croma;

   *Increased cross-selling opportunities; and

   *Placing of 6,500,000 new ordinary shares at 5p each announced 31 October
    to part finance acquisition.


Vigilant is a specialist company dealing with asset protection in the
industrial, commercial and public utilities market. Management and operatives of
the company are primarily ex Military personnel, well versed in the various
aspects of high level security and protection. Vigilant is also developing a
Forces resettlement course for re-training of servicemen operating in hostile
environments.

In the year ended 31 December 2004 Vigilant generated profit before taxation of
approximately #88,000 on turnover of approximately #1,202,000. Net assets as at
31 December 2004 were #97,000.

Vigilant will operate as a stand alone, but wholly owned subsidiary of Croma
Group, trading as Croma Vigilant Limited, with an operating base in Scotland.
Whilst continuing to operate and further develop its prime areas of activities,
Vigilant will also benefit from the interchange between other Croma Group
companies in terms of products and services. This should result in a level of
cross referral between the respective customer bases.

The initial payment for the acquisition is #804,000 comprising of #225,000 in
cash and the balance in Croma shares at 6.5p ("Vendor Shares"). Further payments
up to a maximum of #2,196,000 will be made on a performance-related basis for
the trading period ending 31 December 2006.

The Board also highlights to shareholders today that work is progressing towards
the completion of the second acquisition which is in the field of biometrics. It
is hoped that this will take place shortly upon completion of the due diligence.

Croma also announced on 31 January 2006 that it has placed 6,500,000 new
ordinary shares at 5p each with existing institutional shareholders to, in part,
fund the initial cash consideration for Vigilant.

Application has been made for the admission of the Vendor Shares to trading on
the AIM market of the London Stock Exchange on 9 February 2006. The Vendor
Shares will rank pari passu with the existing ordinary shares of the Company.

Commenting on the acquisition John French, Croma's Chairman and Chief Executive
said "We are very pleased with this acquisition. Not only as a stand alone
subsidiary with significant opportunities for growth, but also for the exchange
of potential customer development between the company and other members of the
Croma group.

"There are a number of areas of development which have been targeted and we
expect to see some interesting developments follow through as a result of this
acquisition. It is also pleasing to note that the Vendors have accepted the
share element of the acquisition at a premium, which I believe indicates
confidence in the prospects of Croma going forward."

                                  
                                    --ENDS--

Enquiries:

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

Bishopsgate Communications Ltd.                               Tel: 020 7430 1600
Dominic Barretto                                           Mobile: 07930 450 156
Nick Rome                                                  Mobile: 07748 325 236

Notes to Editors:

Listed on the AIM market of The London Stock Exchange, Croma Group plc, the 
specialists in the design, development, production and marketing of overt and 
covert surveillance and defence related products, comprises of three divisions; 
namely Croma Defence Systems Ltd, Shawley (a division of Croma Defence) and R&D 
Design Services Ltd.







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

END
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