CMG Croma Grp

RNS Number:4520P
Croma Group PLC
15 January 2007


                                                                 15 JANUARY 2007

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

                                 Trading Update
                                       &
                       Heads of Agreement for Acquisition

In advance of the Group's Annual General Meeting (AGM) being held later today in
Hereford, the Board of Croma, the AIM listed surveillance security and homeland
defence specialist, is pleased to announce that it has signed Heads of Agreement
to acquire the entire issued share capital of a leading privately owned
manufacturer and distributor of CCTV products.

The Board also takes this opportunity to provide shareholders with an update on
trading.

KEY POINTS

   *Turnover for six months to December 2006 up 185.8% to #2,597,218;

   *Acquisition expected to be completed in February, around the time of the
    Group's Interim Results;

   *Proposed initial payment expected in Croma shares at 6.5p - a significant
    premium to current Croma share price; and

   *Acquisition expected to strengthen Croma's capabilities and geographic
    reach in the CCTV marketplace.


Trading update

Turnover for the six months to December 2006 was #2,597,218 (like for like 2005:
#908,649) - an increase of   185.8% as a result of improved performance from
core businesses, and recent acquisitions.  The Board believes there will
continue to be a steady increase in terms of turnover, as new business prospects
remain encouraging, and remain confident for the outcome for the year.

The Board looks forward to providing a lengthier update on trading at the time
of the Group's Interim Results statement in February.


Heads of Agreement

The Board is also pleased to announce that it has today signed Heads of
Agreement to acquire the total issued share capital of a South Wales based CCTV
manufacturer and distributor.

Under the terms of the contract, it is proposed that Croma makes an initial
payment comprising of new ordinary shares at 6.5p - a significant premium to the
current share price.

The acquisition is subject to due diligence and signing, and the Board looks
forward to updating shareholders further in due course.

Commenting on today's news, John French, Chairman and Chief Executive of Croma
said: "This acquisition would bring a number of benefits to our CCTV operations
in terms of technology and technical assistance. Furthermore it provides for an
extended product range, together with a number of distribution opportunities for
the Group."

                                   ---ends---

Enquiries:

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

Bishopsgate Communications Ltd.                               Tel: 020 7562 3350
Dominic Barretto                                           Mobile: 07930 450 156
Jenni Herbert




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

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