Trading Statement

Reliance Security Group PLC 28 April 2006 Reliance Security Group plc ('Reliance') Trading update The Directors of Reliance are pleased to provide an update, prior to the commencement of the close period, on the Group's trading performance and prospects. The Directors expect that trading results for the year to 28 April 2006 will be in line with market expectations. The Group remains financially strong with good levels of organic cash generation. In security services, market conditions have remained challenging and we have seen continuing pressure on margins. We have devoted great management effort and expense to meet the needs of security industry regulation. This diversion of resource has resulted in some slippage in our market share. However, we expect that the full implementation of regulation, from 20 March 2006, will start to have a beneficial impact during the course of next year, and we have restructured the senior management team to take full advantage of this. The group enjoys extensive growth opportunities in the large and diverse facilities management and business process outsourcing market, estimated to exceed £40 billion per annum. We continue to invest in developing new products and services to meet the needs of these markets for process change and the application of the latest technology. A number of contracts have been successfully renewed, we have invested significantly in additional business development resource and activity levels remain high. The loss of our electronic monitoring contract on 31 March 2006 means that next year will be the first full year without the benefit of this business. The outurn for next year will be dependent on our success in winning further new significant business. Reliance's results for the year to 28 April 2006 are expected to be announced on 29 June 2006. Note: Reliance is an established market leader in the provision of contract security, facilities management and support services and in business process outsourcing. Reliance employs over 12,000 people from a network of offices throughout the UK. Enquiries: Brian Kingham 020 7730 9716 Chairman Julian Nicholls 01895 205002 Group Managing Director This information is provided by RNS The company news service from the London Stock Exchange
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