Issue of Equity and Capitalisation of Loan

RNS ANNOUNCEMENT

27 June 2012

Pentagon Protection plc

("Pentagon", "the Company" or "the Group")

PLACING OF NEW ORDINARY SHARES AND

PART CAPITALISATION OF CHAIRMAN'S LOAN

Following on from the recent release of interim results and financial review for the six months ended 31 March 2012, Pentagon Protection (AIM: PPR), announces further details of the part capitalisation of the existing loan from the Chairman, Mr Haytham Elzayn, to the company by the issue of new shares.

The capitalisation of £110,000 is to be effected by the issue of 2,000,000 ordinary shares of 1p each at the market value of 5.5 pence per share, as at the date of conversion.

A further 314,727 new ordinary shares are to be issued to satisfy £17,310 of obligations to third parties.

Application has been made for the new shares to be admitted to trading on AIM and it is expected that dealings in these shares will commence on 2 July 2012.

The new ordinary shares will rank pari passu in all respects with the existing shares in issue.

The issued share capital following the Placing will be 11,133,908 ordinary shares each with one voting right. Mr Elzayn will, following the issue of the new shares, be interested in 3,223,223 ordinary share, representing 28.95% of the enlarged issued share capital.

The capitalisation of the loan is a related party transaction under the AIM Rules and the directors of Pentagon, other than Mr Elzayn, consider, having consulted with the Company's nominated adviser, that the transaction is fair and reasonable insofar as its shareholders are concerned.

Steve Chambers, the Group's Managing Director comments:

"These are exciting times for Pentagon Protection. In spite of a few rough quarters over the past year the Company is well positioned for future growth in both the security and window film markets. This capitalisation by Haytham Elzayn, our Chairman and a major shareholder, demonstrates the continued support and confidence the Directors have in the performance of the Group and the executive team as a whole."

End

Enquiries:

Notes to Editors:

Admitted to AIM in March 2003 Pentagon Protection PLC is a global security specialist company focused on the development and application of high performance window film, energy saving and security solutions for clients around the globe.

As experts in enhanced security and blast mitigation, in September 2008 Pentagon acquired SDS Group Limited, which supplies security equipment, including highly-specialist security and search equipment, mainly to governments, police forces and security and defence forces in the UK and around the world. SDS has strong relationships with customers and extends their offering to clients by providing expert knowledge and further training and consultancy. The acquisition of SDS is in support of the group plans for continued expansion in the security marketplace.

In 2010 Pentagon acquired International Glass Solutions, LLC, which specialises in window film installation and project management services for commercial and government buildings, retail clients and large office buildings around the world. Based in the United States, IGS improves the groups capability and increases our exposure and reach into the North American market.

Steve Chambers joined Pentagon Protection Plc as Managing Director and was appointed to the main Board of Directors as of 15 November 2010.