Re Investment, etc

Reliance Security Group PLC 13 September 2000 RELIANCE SECURITY GROUP PLC The Directors of Reliance Security Group plc ('Reliance') are pleased to announce their intention to proceed with an investment of approximately $6m in Command Security Corporation Inc ('Command'), a Nasdaq listed company, incorporated in the USA. In an off-market transaction, Reliance is to acquire 23% of the ordinary shares at $2.20 per share, equivalent to 27c per $ turnover, together with convertible preference shares and existing options which, when fully converted, amount to approximately 37.3% of the total outstanding share capital. Reliance will also be granted warrants to purchase new shares at $1.25 per share amounting to 20% of the issued and outstanding share capital, at any time between 1 and 5 years from the date of the transaction. Reliance are entitled to nominate three directors to the Command board and, subject to appropriate immigration approval, Graeme Halder, formerly Finance Director of Reliance Security Services Limited, will be appointed Chief Finance Officer. The transaction, which is at a 250% premium to the market, has been approved by the Command board, is subject to stockholder approval and is conditional upon the dismissal of a derivative law suit brought against Command in 1997 which has had a potential impact on Command's recent market valuation and financial performance. The consideration, payable out of cash balances, is due on completion of the transaction, expected in December 2000. Command, with current annualised turnover of c.$70m, provides manpower security to the commercial and government sectors throughout the United States and has particular strengths in aviation. This investment affords Reliance and Command the opportunity to provide services to their respective customers across a wider geographic area. It provides tentative steps for both businesses to address the issues of potential globalisation of their markets. It represents for Reliance a measured response to the great opportunities and risks of the USA market. Founded in 1980 by its present Chairman, Bill Vassell, Command had, in the fiscal year ended 31 March 2000, an EBITDA of $2.1m or $0.32 per share, a Loss before tax of $0.3m and net assets of $2.2m. In the first quarter to June 2000, turnover increased 20% year on year and PBT was $70k. Reliance Chairman, Brian Kingham, said: 'This is our first investment outside the UK and provides an involvement in the world's largest and fastest growing market for security and support services. We have known Command for more than 10 years. They enjoy a strong market position, a well-established executive management team and adequate resources. Command are determined to grow beyond their current ranking of 15th in size, based on turnover, in the still highly fragmented USA market. They have everything to go for and I believe the Reliance experience of having grown successfully in similar circumstances will be helpful. The investment provides Reliance with a window on developments in the USA which represents almost half the world market for security.' For further information contact: Geoff Haslehurst - 01895 205000 Brian Kingham - 0207 730 9716
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