Disposal

RNS Number:1572O
Radamec Group PLC
31 July 2003


                RADAMEC SELLS DEFENCE BUSINESS FOR #6.0 MILLION


Radamec Group PLC ("Radamec") announces that it has sold Radamec Defence Systems
Limited ("RDS"), its wholly-owned subsidiary, to Ultra Electronics Holdings plc
for a cash consideration of #6.0 million.


RDS designs, manufactures and sells high performance CCD cameras, stabilised
platforms and electro-optical weapon control, target tracking and surveillance
systems for the defence market. These products complement Ultra's range of
defence equipment.


The RDS result for the year ended 31 December 2002, the last audited year's
accounts, was a pre-tax operating loss of #375,000, and combined net assets for
RDS excluding cash and intercompany debt were #2,900,000. Radamec's preliminary
announcement dated 30 April 2003 stated that a significant trading improvement
was anticipated for RDS in 2003 and trading in the year to date has confirmed
this expectation.


Len Whittaker, Chairman & Chief Executive of Radamec, stated "We are pleased to
have completed the sale of RDS to Ultra which results in a substantial capital
gain and significant cash balance for Radamec. The proceeds of the disposal will
be placed on deposit whilst the Board considers the appropriate capital
structure for the ongoing business and a possible distribution of surplus funds
to shareholders."


Quarterdeck Investment Partners, a division of Jefferies International Limited,
advised Radamec on the sale.


Notes for Editors:


In July 2002, Radamec transferred to AIM from the Official List.


In October 2002, Radamec sold the Chertsey site for residential development for
#4.6 million; its book value was #0.6 million.


In February 2003, Radamec sold its subsidiary, Radamec Broadcast Systems
Limited, for #4.65 million in cash, generating an estimated profit of #1
million.


At the mid-market share price of 43.5 p at close of business on Wednesday 30 
July 2003, Radamec had a market capitalisation of #8.1 million.



Enquiries:

Radamec Group plc                                                01932-561 181
Len Whittaker (Chairman & Chief Executive)
Lionel Moore (Finance Director)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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