FLX.L Regulatory News (FLX)

Falanx Group Limited

("Falanx" or "the Company")

NEW BUSINESS UNIT - FALANX CYBER TECHNOLOGIES

Falanx Group (AIM:FLX), the global intelligence, security and cyber defence provider, is pleased to announce the establishment of Falanx Cyber Technologies.

Falanx Cyber Technologies

Our newly formed business unit has been created in order to gain significant commercial advantage from the management of advanced cyber threats we see every day. Falanx Cyber Technologies uses knowledge gained in Falanx Cyber Defence, our managed service business, to develop and produce a range of proprietary technology to continuously improve our 'Security-as-a-Service' offering. We also distribute through channel partners to the wider SME and Major Enterprise market.

The technology development hub led by Jay Abbott, Executive Director: Cyber Defence, is now fully established in our new Cyber Defence Centre in Birmingham. New technology is rapidly prototyped as a consequence of the intelligence generated by our Assessment, Monitor and Response teams. These new technologies are deployed as part of our managed service and productized for distribution through our channel partnerships. This form of rapid technology development, based on real-time operations, carries an extremely low cost and we therefore remain on track to achieve profitability and positive cash flow next financial year

Falanx Cyber Technologies is focused on the creation of flexible, scalable and cost-effective technology for both the SME market and major enterprises who require an outsourced solution. As a result, Falanx Group is set to develop into a fully integrated cyber technology and managed services operator, maintaining the ability to sell our own continuously improving technology and services, more flexibly and at a higher margin of sale.

Jay Abbott, Executive Director: Cyber Defence, commented:

"The development of our own technology is a direct result of working alongside our clients and dealing with real-world issues, not isolated in a software laboratory. We therefore see the latest threats as they emerge and create real, effective, solutions which advance our technology and benefit all of our clients and partners."

Stuart Bladen, Chief Executive Officer of Falanx Group, commented:

"The creation and ownership of our own security technology is fundamental to our business. It provides us with the ability to be more agile, adaptive and efficient than our competitors, who in the main, re-sell or license their tool-set. The retention of this Intellectual Property and therefor increased margin of sale lead to greater shareholder value."

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