Westminster Group Regulatory News (WSG)

10 December 2014

Westminster Group Plc:

Grant of Options and Cost Reductions

Westminster Group Plc ('Westminster' or the 'Group'), the AIM listed supplier of managed services and technology based security solutions to governments and government agencies, non-governmental organisations (NGO's) and blue chip commercial organisations worldwide, announces the grant of 2,937,500 share options to the Directors and 156,250 share options to employees (together the "Share Options").

The Group considers it important to incentivise employees and Directors through share incentive arrangements. The Group adopted the Share Option Scheme on 3 April 2007 ("EMI Scheme"), under which it granted EMI options and unapproved options to certain employees and Directors over its ordinary shares. Options have been granted subsequently. The Group believes that such schemes (as well as Long Term Incentive Plans) align executives with long term shareholder value.

The Share Options have been granted to the Directors as follows:

The Share Options have been granted to the Directors at a price of 28.5 pence under the existing EMI Scheme. Executive directors are issued share options under the EMI Scheme and non-executive directors under an unapproved scheme, which has the same rules as the EMI Scheme but without the relevant tax concessions. The EMI Scheme has been amended from a straight forward time based vesting model to a performance based vesting model. Save for a change of control in the Company, Share Options granted to Directors will only vest if the Company's share price has reached 60 pence at any time but will not be exercisable until after 18 months from the date of grant. All Share Options have an exercise period of 10 years from grant under the rules of the EMI Scheme. The 60p threshold represents a premium of 140 per cent. to the placing price of the £1 million fundraising announced earlier today and a premium of 66% per cent. to the average equity issue price since July 2011.

An additional 156,250 Share Options have been granted to certain employees of Westminster and vest on a time basis in accordance with the EMI Scheme.

Following the grant of the Share Options, there are a total of 4,600,612 Director and employee share options in issue representing 8.3 per cent. of the current issued share capital of the Company.

As referenced in today's announcement of the £1 million fundraising, operating costs have been reduced by in excess of 15% and this has included board and advisory fees.

For further information please contact:

Notes:

Westminster Group plc is a leader in the supply of managed services and 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 facilities 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.wsg-corporate.com