CMG Croma Grp

RNS Number:2729Y
Croma Group PLC
13 February 2006


                                                                13 February 2006

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

                            ACQUISITION OF PHOTOBASE

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 biometric identification and access-control
solutions company Photobase (Limited).

Building on the acquisition of Vigilant (Scotland) Limited announced on 3
February, the acquisition of Photobase will enable the Group to provide a more
rounded security solution. Photobase adds a new range of hi-tech products to
Croma's inventory, allowing the Group to take advantage of a growing need for
identity verification.

HIGHLIGHTS

   *Croma to acquire Photobase for an initial payment of #1,292,000
    comprising of #792,000 in cash and the balance in 7,692,308 new ordinary
    shares at 6.5p;

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

   *Photobase's addition extends Croma's capabilities, opening up the
    biometrics arena;

   *Acquisition significantly strengthens the Group's client base, to
    customers already established in Police, Prison & Immigration, Government
    and Commercial organisations.

   *Following the acquisition, there will be increased opportunities to grow
    the Group's overseas presence.

Photobase is a UK-based business which designs, installs, services and maintains
biometric identification and access-control solutions to meet the physical
security needs for a wide range of locations, budgets, security policies and
organization types.

Photobase provides high level security products and solutions and its latest and
main product is called Touch & Go. This is a secure access control system, which
only needs a fingerprint for identification and searches 1000's of records in a
second. It offers levels of security, power, and simplicity far in excess of
traditional card and PIN based systems.

Photobase has been profitable every year since inception in 1989. In the year
ended 31 December 2004 Photobase generated profit before taxation of
approximately #339,193 on turnover of approximately #963,872. Net assets as at
31December 2004 were #35,185.

Photobase will be re-branded Croma Photobase and going forward will become a
division of Croma Defence Systems Limited. Its customer base ranges from
commercial organisations to government and has enjoyed particular success in the
prison and immigration field. Meanwhile, Photobase's new range of products is
also receiving encouraging sales and interest from overseas.

The initial payment for the acquisition is #1,292,000 comprising of #792,000 in
cash and the balance in Croma shares at 6.5p ("Vendor Shares"). Further payments
up to a maximum of #3,000,000 will be made on a performance-related basis for
the trading period ending 31 December 2007.

Application has been made for the admission of the 7,692,308 Vendor Shares to
trading on the AIM market of the London Stock Exchange on 16 February 2006. The
Vendor Shares will rank pari passu with the existing ordinary shares of the
Company.

Commenting on the acquisition, John French, Chairman and Chief Executive said:
"The hi-tech product range that Photobase brings with is an important addition
to the Group. As well as enhancing our overall offering, it also opens up a
whole new client base.

"The focus here at Croma remains on providing a one-stop-shop for security
needs. Following our two acquisitions so far this year, we are well on the way
to achieving this and look forward to further developments moving 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:

Croma
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.

Photobase
The latest and main product is called Touch & Go and has taken its roots,
ruggedness and reliability from the systems designed for prisons. It is designed
to overcome all the problems associated with traditional card based access
control system and indeed, when compared side by side, demonstrates deficiencies
and shortcomings in those systems thus exposing and opening up a very large
market.

All of Photobase's other systems focus on the people identification business,
some of which include Photo ID Card Production, Time & Attendance, Visitor
Management and Control. The system is being expanded to include Asset Management
with RF, but in conjunction with biometric identification for proof of
ownership. Some custom development is performed and a complete maintenance and
after care sales system is in operation to ensure the customer has first class
support.




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

END
ACQBUGDDSXBGGLG

Croma Grp (LSE:CMG)
Historical Stock Chart
From May 2024 to Jun 2024

Croma Grp (LSE:CMG)
Historical Stock Chart
From Jun 2023 to Jun 2024