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RNS Number : 6784A RCG Holdings Limited 14 October 2009

Press Release 14 October 2009

RCG Holdings Limited

("RCG" or "the Company")

RCG wins contract from the Malaysian Ministry of Education

RCG Holdings Limited (AIM:RCG, HKSE:802), an international provider of biometric and RFID products and solution services with a primary focus in the Asia Pacific markets, is pleased to announce that, together with its partner, a government-licensed security service agency in Malaysia, it has signed a contract to provide its RFID security personnel patrol solution, the Guard Tour Monitoring solution, to the Malaysian Ministry of Education ("MOE"). The solution uses Machine-to-Machine ("M2M") communication enabled by RFID and wireless technologies to enhance security and improve operational efficiency in the security patrol process.

The first phase of the project will be delivered to a total of 22 schools in Kerian, Perak in Malaysia. Following confirmation of the solution specification by the MOE and commissioning of the project, RCG will be negotiating with the MOE for the next phase of instalment to a further 10,000 schools in Malaysia. This phase would have a contract value of approximately HK$60 million over the next three years.

RCG's fully developed RFID Guard Tour Monitoring solution incorporates portable wireless RFID readers, called the R10, as verifying devices to the RFID tags installed in locations within the school and Guard Tour Monitoring software. The solution allows security personnel to patrol school premises carrying the R10 device and performing verification checks at designated locations. Upon detection of the RFID tag, the R10 device, which is equipped with Bluetooth technology, automatically transmits patrol-related data to a Bluetooth-enabled mobile phone and then to a central server through a GPRS network during security verification at each of the designated points, thus enabling real-time tracking and security reporting through the machines' direct communications. The Guard Tour Monitoring software instantly records each transaction and then issues an alert to administrators which allows for real-time monitoring of the school's security situation and tracking of the security personnel's movements. The security and school administrator will also be able to conduct post-patrol data analysis.

The system will replace the conventional systems that are currently used, which require manual checking at each location with no real-time features and no PC connections present. The M2M concept from RCG is intended to bring automation and security enhancement to schools.

Commenting on the project wins, Dato' Lee Boon Han, Deputy CEO of RCG Holdings Limited, said: "We are extremely pleased to have won these contracts to provide RCG's security solutions to the MOE. The Malaysian government considers RCG as one of the most reliable solution providers in the region and these contract wins demonstrate RCG's proven ability to provide cutting-edge and high-quality solutions for its departments. We are proud to implement new innovative solutions involving M2M to solve industry needs.

"Research by Strategy Analytics suggests that the global market for mobile M2M is estimated to be worth US$20 billion this year and we see a vast opportunity in this area. RCG is also pleased that its solutions will contribute to society by providing enhanced security in schools as well as providing students throughout Malaysia a significantly improved learning environment."