Pre-Close Trading Update

Quadnetics Group plc ("Quadnetics" or "the Company") announces that
it expects results for the year ended 31 May 2006 to be broadly in
line with market expectations. As projected in the Company's interim
report issued in February 2006, Quadnetics achieved significantly
increased profits in the second half of the year compared with the
first half.

On 9 November 2005, Quadnetics acquired Protec plc ("Protec"), which
has substantially increased the scale of the company's activities and
market position in its chosen field of electronic security systems.
Progress with the integration and post-acquisition trading of Protec
has been ahead of plan, and there have been positive developments in
most areas of the acquired business. Integration of the acquired and
continuing activities has largely been completed, and Quadnetics is
now trading through two divisions, Quadrant Security and Synectics,
under an enlarged and strengthened senior management team.

For the year ended 31 May 2006, total consolidated turnover is
expected to be approximately £50 million, of which turnover from
continuing operations is expected to be approximately £30 million, a
rise of around 12% on the previous year.

In the Company's interim report, it was anticipated that most of the
benefit of Synectics' investment and increased activity in the North
American CCTV surveillance market would not start to come through
until the 2006/7 financial year, and there was indeed no contribution
from this area in 2005/6. However, the prospects in North America
continue to look excellent and the sales pipeline is very
encouraging. Trading for the Group's UK businesses in the second half
was in aggregate better than expected, particularly for Synectics'
digital security systems.

Total order books as at 31 May were approximately £13 million,
compared with a total corresponding figure of around £10 million for
the Quadnetics and Protec businesses at the end of the previous year.

Quadnetics' balance sheet remains strong. The Group's consolidated
net cash position at 31 May 2006 was significantly above expectations
at approximately £9 million, due principally to lower than
anticipated integration and other costs within the acquired Protec
businesses, and an improved working capital position.

Overall, the Board of Quadnetics is pleased with progress and is
looking forward with confidence to the Company meeting its goals for
2006/7.

Preliminary results will be issued on or around 13 September 2006.

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