New Distribution Agreement in China

SerVision PLC

("SerVision" or the "Company")

New distribution agreement with Beijing SIVI Technology Co., Ltd

SerVision (AIM: SEV), the AIM quoted developer and manufacturer of digital security systems, is pleased to announce that it has entered into a distribution agreement appointing Beijing SIVI Technology Co., Ltd ("BST") as exclusive distributor of SerVision's video gateway products in China (the "Agreement"). BST is a newly established company that is focused on marketing and distributing SerVision's technology for a wide range of mobile security applications in China.

BST was established by SIVI Tech China Co., Ltd ("SIVI"), a hi-tech company that provides solutions for major security and surveillance companies in mainland China. SIVI's business includes environmental monitoring solution services, safe city services, construction site (work safety) monitoring and digital video surveillance vehicle tracking and fleet management solutions.

Under the terms of the Agreement, BST will have exclusivity over the distribution of all of the Company's video gateway products in these territories until June 2016 and over this period they have committed to an order schedule comprising six purchase orders with an aggregate value of US$2.5 million. This is based on certain terms and conditions being met by SerVision and BST as stipulated in the Agreement.

SerVision has received an initial purchase order from BST with an aggregate value of US$500,000 of which $271,825 in cash has been paid to SerVision. The remaining balance of $228,175 of the initial purchase order shall be paid 3 days after BST grants the China Compulsory Product Certification but no later than 31 October 2014. Pursuant to the Agreement BST has also agreed to submit additional purchase orders with an aggregate value of $500,000 prior to 31 December 2014 and a further four purchase orders by 31 December 2015 with an aggregate value of $1.5 million according to an order schedule and pricings as detailed in the Agreement.

The products being supplied to BST from SerVision fall across its entire range of video gateway solutions with an emphasis on fixed and mobile systems for fleets and remotely located sites. The Company will also be promoting the SVControlCenter, SerVision's enterprise-level video monitoring software platform.

The Agreement replaces the manufacturing rights agreement previously entered into between SerVision Limited, the Company's wholly owned subsidiary, and Rich Wonder Technology Limited in May 2010.

Gidon Tahan, Chairman and CEO of SerVision, commented, "We are delighted to enter into this new distribution agreement covering the Chinese marketplace and to further deploy our mobile video streaming technology for the purpose of securing buses, trucks, police patrol cars, public safety vehicles, remotely located critical infrastructure sites and others. We are confident that our agreement and relationship with BST will help SerVision further enhance the reach of our market leading digital video products into China."

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