RNS Number:8120N
SRS Technology Group PLC
22 July 2003


For immediate release

22 July 2003

SRS Technology Group Plc ("SRS or "The Company"")


Placing of  19,514,286 new ordinary shares of 1p each, fully paid at 3.5p per
new ordinary share and proposed Capital Reorganisation


Further to the announcement on 16 July of the estimated loss for the year ended
30 June 2003, the Directors are pleased to announce that its broker, Hoodless
Brennan, has conditionally placed with institutional and other investors
19,514,286 new ordinary shares of 1p each at 3.5p per new ordinary share which
will raise #540,000 net of expenses, to fund the Company's working capital
requirement.


The Placing, which is not underwritten, is conditional upon the passing of a
resolution to be put to an EGM on 14 August 2003, inter alia to divide the
Company's existing issued ordinary shares of 5p each into one new ordinary share
of 1p each and four deferred shares of 1p each, and its unissued ordinary shares
of 5p each into five ordinary shares of 1p each.


Directors have participated as detailed below:

Director                   Placing participation        No of  Placing Shares  % of the Enlarged issued
                                                                               share capital

Mark Horrocks              #41,000                      1,171,429              6.4%
Non-Executive

David Gration              #35,000                      1,000,000              3%
Executive Chairman

Michael Gatenby            #15,000                      428,571                1.3%
Non-Executive

Mary Young                 #3,000                       85,714                 0.35%
Finance Director


The remaining funds are being raised through existing and new shareholders.


The company is making good progress and since flotation and has;


*  achieved recognition in the NHS as a quality supplier with growing
sales and repeat purchasing by individual trusts;

*  significantly progressed the development of the SRS Lite to address
the needs of the light use market within the healthcare sector and facilitate
access into the elderly consumer market. The SRS Lite is due to be launched
later this year;

*  continued development and upgrading of the SRS 100, with the
introduction of the SRS Intellec incorporating voice announcement, due later
this year;

*  established a network of international resellers including Pride in
the US, the world's leading manufacturer of powered wheelchairs;

*  moved forward to access the elderly consumer market in collaboration
with Tunstall, Europe's leading supplier of community alarms, with which it has
commenced joint marketing of SRS products.


A circular, setting out full details of the Placing, including the commitment of
the Directors, the proposed capital reorganisation and the resolution to be
proposed at the extraordinary general meeting to be held on 14 August 2003, has
been dispatched to shareholders today.


Commenting on the Placing, David Gration, Executive Chairman, said


"We are extremely pleased that directors and existing shareholders have
contributed additional funds to the continued development of SRS.  We believe
that SRS has a strong future and new products including the SRS Lite and
Intellec will significantly accelerate sales and contribute to the organic
growth of the business."


Contacts:


David Gration,              Executive Chairman SRS          01922 456882


Tim Anderson                Buchanans                       0207 466 5000


Tim Cofman                  Hoodless Brennan                0121 237 6374


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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