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Toad Group PLC (TGP)

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Monday 20 December, 2004

Toad Group PLC

Strategic Partnership


Embargoed Release: 07:00hrs 20 December 2004

                                Toad Group plc                                 

                                (`the company')                                

                             Strategic Partnership                             

Toad Group plc, today announces that it has acquired a 25% holding in 21st
Century Crime Prevention Services Ltd ('21st Century') for a consideration of £
1.65m in cash, together with options to acquire the remaining 75% for a further
total cash payment of £5.05m.

21st Century is one of the UK's fastest growing suppliers of specialist CCTV
security systems for public transport vehicles. The installed system has the
active support of transport authorities and operating companies who are keen to
increase passenger numbers by reducing crime on public transport vehicles and
defeat fraudulent or bogus insurance claims. As well as supplying security
solutions to numerous public transport companies, 21st Century is the preferred
supplier to Arriva's UK Bus Division with whom it has developed a bespoke
system. Arriva plc has an annual turnover exceeding £1.6 billion and rail and
bus operations in 8 European countries, operating over 6,000 buses in the UK.

21st Century's turnover for its last financial year ended 31 May 2004 was £2.9m
up from £1.8m in the previous year and its net assets are currently £350,000.
The company's 25% initial stake in 21st Century announced today will be by way
of preference shares which will yield an annual dividend entitlement of at
least £255,000. The company has also acquired (i) an option to buy further
preference shares for £750,000 in cash which will bring its holding in 21st
Century up to 49% and its annual dividend entitlement up to at least £500,000
and; (ii) an option to acquire the remaining 51% of the business for £4.3m in
cash.

Paul Frodsham, Managing Director of 21st Century, commented:

'The partnership with Toad Group represents the ideal opportunity to facilitate
the next stage of expansion for 21st Century. Their existing network of
customer service and installation resources will enable us to rapidly fulfill
our current order book thus allowing us to focus our resources on winning new
orders and driving the business forward. I am also looking forward to welcoming
Toad Group's Managing Director, Nick Grimond, to the Board of 21st Century'

Peter Ward, Chairman Toad Group plc, commented:

'For some time now we have recognised the need for a strategic move into a high
growth sector to diversify the company's revenue streams and augment our mature
businesses. This agreement with 21st Century fulfills this need perfectly,
enabling us to leverage our existing engineering and call centre expertise to
consolidate costs and generate higher margin business.'

                                    -Ends-                                     

For enquiries please contact:

Peter Ward

Chairman, Toad Group plc

Wilson Jennings

Finance Director, Toad Group plc

Tel. 020 8710 4000

Adam Reynolds / Andrew Tan

Hansard Communications

Tel. 020 7245 1100