Funding of EBT to Acquire Ordinary Shares and RPT

Synectics plc (AIM: SNX), a leader in advanced security and surveillance solutions, announces that the Company intends to fund its employee benefit trust ("EBT") with up to £1.5 million in order for Quadnetics Employees' Trustees Limited, the Trustee of the EBT (the "Trustee"), to make market purchases of ordinary shares of 20 pence each in the Company ("Ordinary Shares"). The Ordinary Shares purchased by the Trustee will then be held by the EBT to satisfy future employee share-based compensation awards.

The Trustee will instruct Singer Capital Markets ("SCM"), as broker, to acquire the Ordinary Shares for the EBT. Purchases will be up to £1.5 million in value of Ordinary Shares (by market value and exclusive of stamp duty and commissions). Paul Williams, Chief Financial Officer and Director of Synectics, is also a Director of the Trustee.

Related Party Transaction

As certain Directors of the Company are potential beneficiaries of the market purchases of Ordinary Shares by the EBT, as well as Paul Williams being a Director of the Trustee of the EBT, the EBT is deemed to be a related party of the Company. The funding by the Company of the EBT to make such market purchases of Ordinary Shares is deemed to constitute a related party transaction under AIM Rule 13.

The independent Directors of the Company (being all Directors excluding Amanda Larnder, Chief Executive Officer and Paul Williams), having consulted with the Company's nominated adviser SCM, confirm that they consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.