Synectics Regulatory News (SNX)

For immediate release 4 January 2011

Quadnetics Group plc

("Quadnetics" or the "Group")

Acquisition

Quadnetics Group plc, a leader in advanced surveillance technology and security networks, announces that it has acquired the entire issued share capital of Persides Technology Limited ("PTL") for a total consideration of up to £260,000 in cash.

PTL specialises in advanced battlefield electronic monitoring systems (EMS) and ruggedised hand-held digital video systems (VEEcam ®) for use in extreme environments. It is an existing technology partner to the Group's defence business, Synectics Defence Systems, and has played an important role in the development of Synectics' latest generation radio frequency detection system, Chili, which will be launched in early 2011, and has already attracted international interest (www.synx.com/chili ).

The acquisition of PTL will augment Synectics' core intellectual property in the defence market and will enable the Group to retain greater margin on sales of Chili. In addition the Group's greater financial strength and sales capability should enable sales of VEEcam to significantly increase through Synectics' existing market channels.

Commenting on the acquisition, John Shepherd, Chief Executive said: "The acquisition of PTL is a significant step forward in the restructuring and repositioning of our defence activities and opens up new market opportunities for the Group."

For further information, please visit www.quadnetics.com or contact:

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