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Servocell Customer Wins European Distribution Deal

Servocell Group plc is pleased to confirm that Beloxx GmbH’s distribution deal for its Be-Code product announced at the Company’s recent interim results, has been successfully concluded with Adolf Würth GmbH.

Würth GmbH, which reported a turnover of €6.5bn in 2005, operates through a global network of 368 companies and will distribute the Be-Code product across its European catalogue furniture business.

The Be-Code product, which incorporates Servocell’s Active Latch AL1 technology is an easily fitted cabinet handle, has been in development in conjunction with Beloxx for the last 9 months. It is currently in volume production at Servocell’s sub-contract Malaysian manufacturing facility.

Simon Powell, CEO of Servocell Group, said:

“The collaboration between Beloxx and Würth represents an excellent way of building channels rapidly for Active Latch products. Beloxx and Servocell have collaborated very closely on the development of this product to ensure it meets the market needs and the project forms a model for future collaborations in other market sectors.

Matthias Blunck, Managing Director and owner of Beloxx commented:

“The Be-Code product represents a leap forward in the simplification of electronic locks and we have been very impressed by the level of response from the market. Our collaboration with Würth will greatly accelerate the uptake of the product and provide an excellent infrastructure for the support of end users.”

In addition to the distribution deal with Würth, the Beloxx BeCode product will also be marketed by Burg GmbH who specialise in cabinet furniture for metal lockers.

This is a significant development for Servocell as it will contribute to the progress being made towards meeting the market’s revenue expectations for 2006/2007. This agreement also provides wider sales opportunities for the Active Latch technology, which Servocell will pursue.

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Notes to editors:-

About Servocell

Servocell ( specialises in actuator mechanisms based on piezo technology for security, access control and valve applications, allowing OEMs to develop more commercially competitive products that are faster, smaller and longer lasting. The applications range from more reliable locks to gas valves in the 'smart' home. Advantages of the technology are much lower power consumption, long life and potential for lower lifetime costs. Complete modules, such as the Active Latch, speed product development for OEMs in all industries.

About Active Latch

The Active Latch is a powerful and innovative alternative to traditional solenoid-driven and motorised release mechanisms. At the heart of its mechanisms are its patented piezo-ceramic actuators, providing an unrivalled combination of movement and force. Servocell's Active Latch technology can be used as the principal component of any lock to replace cylinders and motor apparatus. Reliability is ensured with 1M operations and the low power consumption means years between battery changes.

For further information, please contact:

Lucy Saunders
Mahseer Ltd
Tel: +44 (0) 777 55 66 074