Trading Statement

Newmark Security PLC
12 August 2005


               Newmark Security PLC ('Newmark' or the 'Company')

                                 Trading Update

Newmark today announces a trading update in advance of the release in September
of its final results for the year ended 30 April 2005.

Trading in the two core divisions, being Asset Protection (Safetell) and
Electronic (Grosvenor Technology and Custom Micro Products), has been buoyant
with both turnover and operating profit above management expectations. The
Secure Locking division (NSP Europe) has however continued to perform below
expectations with higher than anticipated losses. A decision has therefore been
taken by the Board to sell NSP Europe to CS (London) Limited for a nominal sum
and close Concept Hardware & Security Solutions, a subsidiary of NSP Europe. The
loss on disposal of NSP Europe will be reflected in the financial year ended 30
April 2006. NSP Europe had net assets at the date of disposal of approximately
£0.2m. It is now anticipated that the final results for the year ended 30 April
2005, subject to the completion of the annual audit, will be a profit on
ordinary activities from continuing businesses before amortisation of goodwill,
interest discount adjustment, exceptional items and taxation in the region of
£1.5m (before losses from the discontinued businesses of £0.8m). Therefore the
Group profit on ordinary activities before amortisation of goodwill, interest
discount adjustment, exceptional items and taxation is anticipated to be in the
region of £0.7m.

The Company has made an encouraging start to the new financial year which will
be mainly reflected in the second half, experiencing a high level of interest in
its products and services, particularly within Grosvenor Technology, with a
number of new contracts with major companies in advanced stages of discussion.

Commenting on trading, Maurice Dwek, Chairman, noted 'NSP Europe has incurred
losses for some time and was unlikely to move to profitability in the immediate
future. By disposing of this division we are able to fully focus management time
and resources on the Asset Protection and Electronic divisions where we are
seeing good growth potential, both in the UK and overseas. A number of
potentially interesting contracts should be concluded in the coming months and
we look forward to the future with confidence.'

Enquiries:

Maurice Dwek, Chairman, Newmark Security PLC                   
Brian Beecraft, Finance Director, Newmark Security PLC         020 7355 0070

Mark Percy, Seymour Pierce Limited                             020 7107 8000




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