LEO Leo Ins

RNS Number:6903Z
Safeland PLC
13 March 2006


Press Announcement

Safeland Plc

13 March 2006

Section 320 Circular

The Board of Safeland plc (the "Company") announces the proposal for the Company
to enter into a Broker Agreement with Grafton Insurance Services Limited 
("Grafton"), a company owned as to 50 per cent. by Leo Insurance Services plc 
("Leo"). Leo was demerged from the Company in 2005 and was subsequently admitted
to trading on the AIM Market of the London Stock Exchange plc.

It is proposed that the Company becomes a client of Grafton, by appointing it as
its insurance broker pursuant to the Broker Agreement. Under the Broker
Agreement, Grafton would have the duty (amongst other things) to seek insurance
cover for the properties held by the Company and its subsidiaries (the "Group")
on the best terms reasonably available and in any event on terms at least as
good as those currently enjoyed by the Group. Any commission which Grafton earns
from making these arrangements will be shared on an equal basis with Safeland.

The Company's largest shareholder is Safeland Holdings Corporation, a company in
which Larry Lipman and Errol Lipman, Directors of the Company, each hold one
third of its share capital. Safeland Holdings Corporation, which held (and
continues to hold) 57 per cent. of the issued share capital of Safeland, also
holds a 37.3 per cent. interest in Leo. In view of this, both Larry and Errol
Lipman are deemed to be connected with Leo and also Grafton, for the purposes of
section 320 of the Companies Act 1985. Accordingly, the Broker Agreement is
conditional on the approval of shareholders of the Company, which will be sought
at an Extraordinary General Meeting to be convened at 10.00 a.m. on 30 March
2006, notice of which is contained in a circular which has been posted to
shareholders today.

Copies of the circular will be available for viewing at the UK Listing
Authority's document viewing facility which is situated at 25 The North
Colonnade, Canary Wharf, London E14 5HS.

Copies of the circular can be obtained from Safeland plc's registered office at
94-96 Great North Road, London N2 0NL.


-end-



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