RNS Number:5855I
Croma Group PLC
07 September 2006


                                                                7 SEPTEMBER 2006

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

                                 TRADING UPDATE

The Board of Croma, the AIM listed surveillance security and homeland defence
specialist, today provides shareholders with a trading update, covering the
impact of the delays that affected the business in Q3 of last year and the
subsequent strong recovery in trading since the year end, an enhanced order book
and a new business wins.

The Board believes it has now built a solid base from which to significantly
drive the business to its next stage and, with a number of potential
complementary businesses operating in Croma's marketplace, opens up an array of
strategic opportunities - including potential relationships with organisations
with similar objectives. Croma looks to the next period with confidence.

KEY POINTS

   * #1 million of new contracts secured in the last month
   * Issue of surveillance and homeland security never been bigger
   * Multiple contracts secured within each division
   * Quality customers, with repeat business
   * Strong recovery from the previously announced delays which impacted the
     2005 results
   * Uplift in current order book
   * New acquisitions fully embedded and trading well

In the opinion of the Board, Croma is a business of its time. Both surveillance
and homeland security are highly topical issues and Croma's products address the
needs of vulnerable commercial organisations, Government Agencies, Local
Authorities, Police Forces and the Armed Forces - providing leading edge
security technology solutions and products.

TRADING UPDATE

Inevitably, the impact of the delays announced on 26 June 2006 in delivering
certain contracts has had a negative impact on the financial results for the
year ended 30 June 2006. The Board anticipates that turnover for the year ended
30 June 2006 will be approximately #2.8 million (2005: #1.9 million) with a
corresponding loss before interest and amortisation of approximately #560,000
(2005: #696,000).

The Board is pleased to provide an insight to shareholders on the Company's
unaudited management accounts for the first two months of this financial year,
which reflects a improvement in turnover of #821,669 (July - August 2005:
#491,059) up 67%.

NEW BUSINESS WINS

Croma specialises in the design, development, production and marketing of overt
and covert surveillance and defence related products, and comprises of four
divisions, taking advantage of a clearly visible and hostile global security
arena. The Board is pleased to announce today a series of contract wins amongst
its operating companies:

  * R&D Design Services Ltd is a leading innovator and manufacturer of
    surveillance monitors which utilises proprietary video image enhancement
    technology used by leading helicopter and fixed wing manufacturers
    worldwide. The division also offers a complete bespoke design and
    engineering service. The end user of the technology includes Government
    Agencies, the Police and the Military. The Board is pleased to announce that
    three sizeable new orders have been secured from Thales, Agusta and
    Telephonics - the latter representing a breakthrough into the robust North
    American defence sector, which could potentially lead to further business
    moving forward from both this customer and the North American sector in
    general.

  * Croma Shawley (a division of Croma Defence), is a leading brand in the 
    field of specialist conventional and wireless CCTV monitoring systems 
    that incorporates the latest technology. The division announces three
    new wins in the period which comprise of a contract with a major UK
    Northern Police Force - for the provision of a Pathfinder RVS system
    - a major Thailand CCTV distributor and an Israeli CCTV installation
    contract.

  * Croma Vigilant, a specialist security consultancy company dealing with
    asset protection in the industrial, commercial and public utilities
    market, has seen a 22% increase in its turnover since it was acquired
    into the Croma Group of companies. Today's contract wins are with
    Siemens and Ryden - the latter being a leading Scottish-based property
    management company.

  * Croma Photobase designs, installs, services and maintains biometric
    identification and access-control solutions at a wide range of locations.
    Croma Photobase has recently attracted new contracts, including an
    installation for a leading Police Authority, an order for a biometric
    attendance record for an international food manufacturer and an order for
    biometric visitor booking and ID systems at high security centres for a
    major UK bank.

UPLIFT IN NEW BUSINESS ORDER BOOK

Following the Company's trading update in June, where it was announced that the
current order book and contracts across the Group stood in excess of #2 million,
the Board is delighted to report that this figure now stands at circa #2.5
million - inclusive of #1 million worth of contracts secured in the last month -
underpinning the fact that the Company is making inroads on new business - as
more fully described above.

As both governments and private bodies bear responsibility for the protection of
individuals and the community as a whole, safety and security is increasingly
becoming a high priority. Croma continues to provide innovative and quality
solutions to meet this escalating demand with their existing surveillance &
counter surveillance products, systems and services. The Group's current product
portfolio covers Biometrics, CCTV solutions, surveillance monitoring and asset
protection.

Executive Chairman, John French, commented: "The threat of terrorism and the
growing issue surrounding 'Surveillance Security' and 'Homeland Security' is a
global governmental concern. Croma is well placed to supply specialist services
and products to those agencies and forces seeking sophisticated security
technology. The Board will continue to actively seek further acquisition
opportunities in pursuit of its policy of creating a Group with a fully
integrated range of products and services to meet the demands of the expanding
surveillance, security and homeland defence sector."


                                   ---Ends---
Enquiries:

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

Bishopsgate Communications Ltd.                               Tel: 020 7430 1600
Dominic Barretto






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            The company news service from the London Stock Exchange

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