Westminster Group Regulatory News (WSG)

10th September 2013

Westminster Group Plc:

Conversion of Convertible Loan Note resulting in £1.275m reduction of Debt

Westminster Group Plc ('Westminster', the 'Group' or the 'Company'), the AIM listed supplier of system solutions and products to the security, defence, fire protection and safety markets worldwide, is pleased to announce that its net debt position is expected to be reduced by £1,275,540 through the conversion of Convertible Unsecured Loan Stock ("CULS").

The CULS, which were issued in July 2012, have a conversion price of 27.5p, a coupon of 8% per annum and a maturity date of June 2017. Due to the strength of the Group's share price the holders of these CULS have elected to convert their holdings into equity and have signalled their intention to be long term holders of Westminster's ordinary shares.

The balance on the CULS of £1,275,540 will convert into 4,638,327 new ordinary shares of 10 pence each ("Ordinary Shares"). Furthermore, the holders of the CULS have elected to take their entire balance of accrued interest payable in the form of Ordinary Shares with a conversion price of 50 pence per Ordinary Share. Accrued interest to be converted in respect of the CULS amounts to £45,528 and therefore a further 91,056 Ordinary Shares will be issued in respect of this balance.

This conversion will reduce the Group's annual cash interest charge by £102,000, and therefore across the remaining term of the loan note the Group's cash outflow will be reduced by £391,000 in aggregate.

This marks a further significant reduction in the net debt position of the Group, and follows on from the £0.6m reduction and renegotiation of the Synergy Capital loan note which was announced on 19th June 2013.

Application will be made to the London Stock Exchange for the 4,729,383 Ordinary Shares to be admitted to trading on AIM. It is expected that the admission will become effective and that trading in the New Shares will commence on or around 19 September 2013 ("Admission").

Total Voting Rights

Following Admission of a total of 4,729,383 Ordinary Shares from the conversion of the CULS, and 1,272,727 ordinary shares issued in respect of the draw down on the Equity Financing Facility in the previous announcement, the Company's enlarged issued share capital will comprise of 44,154,505 ordinary shares with voting rights. This figure of 44,154,505 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

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Notes:

Westminster Group plc. is a leader in the supply of system solutions and products to the security, defence, fire protection and safety markets worldwide.

Westminster's principal activity is the design, supply and ongoing support of advanced technology security solutions, encompassing a wide range of surveillance, detection, tracking and interception technologies and the provision of long term managed services contracts such as the management and running of complete security services and solutions in airports, ports and other such facilities together with the provision of manned services, consultancy and training services. The majority of its customer base, by value, comprises governments and government agencies, non-governmental organisations (NGO's) and blue chip commercial organisations. For further information please visit www.wi-ltd.com