Comapny: PENTAGON PROTECTION PLC
Epic : PPR

Pentagon Protection plc ('Pentagon' or the 'Company), the manufacturer of
protective glazing products to the automotive, commercial and residential
sectors for safety and security

Corporate Highlights

Contract gains from leading OEM's (vehicle manufacturers: Volkswagen UK, Honda,
Peugeot, Mazda, Mercedes, Citroen).

Filmtek appointed by Eurostar for film panels of glazing at Waterloo Station
and 390k project for protective film application to glass facade at Changi
Airport, Singapore.

Strong order book at Filmtek

Legislative drivers and increasing global demand for protective glass, driven
by urban criminal violence and terrorism.

New Group Chief Executive.

New products.

Improvement in confidence of client companies.

Significantly broader and stronger base for growth.

Prospects

Commenting on the outlook, David Thomas, Chairman said: 'We enter the current
year stronger and I and my Board view the future with confidence.'

'Enhancing the performance of glass to make it safer and more secure for the people of the world today'

[IMG]http://www.pentagon-franchise.com/images/thumbnails/Ferrari_Smoke_Tints_1_thumbnail.jpg[/IMG]

[b] Many Celebrities & VIPs choose Pentagon to make their cars safer and more secure [/b]

{b] Terrorism...Is it a Big problem we face in the world today? You tell me! [/b]

As I write, the news is of the appalling Madrid terrorist attacks. When I first
invested in Pentagon as a private company in 2000, our objective was to deliver
a technology to successfully protect against smash and grab car theft - the bane
of British motorists' lives. While we are succeeding in this goal, your Company
has also grasped the nettle of a significantly greater and more valuable
challenge. That of protecting day-to-day people in their day-to-day lives from
any type of glass related injury.

It is a distressing and difficult reality that the ugliness of conflict in the
world today underpins the future of Pentagon Protection plc. Whether our
products help resist a car thief or protect from the collateral impact of a bomb
blast, these threats are of the spectrum of violence facing metropolitan citizens around the world today.

[IMG]http://www.pentagonglasstech.com/images/thumbnails/building_Office_Peter_Wide_thumbnail.jpg[/IMG]

[b] Internal glass is enhanced with Frosted Window Effect [/b]

[b]Who the hells Filmtek? [/b]

Filmtek, our first acquisition since flotation, is a leading specialist in the
advancement and installation of safety, security and solar window film on
buildings, in the UK and overseas.

To recap, Filmtek, which was founded in 1996, has grown to become a leading
specialist in the advancement and installation of security, safety and solar
window film, leading to the development of the Filmtek 'Anchoring Solution', a
proprietary technology for containing and anchoring glass which has particular
application in overhead glazed roofing.

Filmtek offers advice on the installation of bomb blast and solar control film
and provides solutions for upgrading existing glass through the retrospective
application of window films. The window films offered by Filmtek include bomb
blast/security film, solar control film, privacy film and combination films
offering protection from heat and glare and injury from broken glass

Filmtek Contracts :

Filmtek has undertaken several major projects, both nationally and
internationally, particularly in the Far East and Middle East, for numerous
blue-chip clients, including [b]HSBC, Bank of America, Marks & Spencer, Lloyds TSB,
Pilkington, Vodafone, the British Council[/b], a number of Middle East based Groups
and various government departments. The company was appointed by Eurostar as the
main contractor to [b]film panels of glazing at Waterloo Station[/b] and Filmtek
recently completed a 390,000 project involving the application of protective
film to the glass facade at Changi airport, Singapore. With a number of projects
already secured and investment in further client generation in place, this
component of your Group's business is well poised to grow substantially,
especially in the [b]face of the new world threat of terrorism.[/b]

[b]How will fimtek Benefit PPR? [/b]

Filmtek will further the Group's aim of becoming a [b]leading supplier of
protective glazing products across a significantly broader application base[/b],
adding substantial flat glass expertise in relation to commercial and
residential buildings. In addition, the acquisition has strengthened your
Company's management team, including the appointment of Graham Bannerman,
Filmtek's founder and managing director, as Group Chief Executive Officer

[b] Window Tinting Legislation [/b]

Section 32 of the Construction and Use Regulations [b](part of the Road Traffic
Act) was changed by Parliament in February 2004 to include reference to window
tint films, the effect of which is to prevent the practice of applying tints to
the driver and forward passenger windows.[/b] This has had a significant effect on
demand for window tinting.


[b]What do the directors think of PPR's future? [/b]

With these developments and with additional agreements with other OEMs (vehicle
manufacturers) negotiated since the period end, which include [b]Honda, Peugeot,
Mazda and Mercedes, [/b]your Board is extremely confident that our revised
strategies will contribute to a robust future. [b]We expect the Group's financial
performance to steadily improve as a result not only of the expansion of our
market into commercial buildings with the Filmtek acquisition, but also as a
result of the increasing interest in SupaGlass being demonstrated by automotive
manufacturers.[/b]

[b] SupaGlass [/b]

The Directors are confident that the broad-based demand in the UK for automotive
security film, and therefore for our SupaGlass technology, is continuing to
grow.
The impetus from Government sponsored initiatives to reduce vehicle crime
and increase vehicle safety has been fuelled by a number of specific discussions
on these issues within Parliament over recent months, especially given that
targets on reduction of vehicle crime, a significant proportion of which is
perpetrated through broken windows, have not been met. Thefts from vehicles are
a significant challenge which, given the evidence that SupaGlass style products
are an efficient means of reducing this type of crime, [b]have attracted the
attention of the Home Office and the Department for Transport. [/b]

In addition, the Directors have been consolidating your Company's relationships
with the [b]Fire Brigade, the Metropolitan Police, the Ambulance Service, and the
Ministry of Defence.[/b]

With vehicle safety, Government Health & Safety policies have compelled
employers to put more diligence into developing duties of care operations for
their employees on the road. For example, a recent article in Fleet News
highlights that companies now see Health & Safety as their No. 1 company
concern. It is anticipated that this will lead to increased Supaglass demand on
company vehicles, capitalising on the brands growing reputation in this area.

Importantly, SupaGlass has achieved accreditation to [b]British Standards BS 209
Part 4a [/b]- Specification for Security Glazing for Passenger Cars. This came about
through extensive performance testing in conjunction with the UK's Glass &
Glazing Federation. In addition, as a result of extensive testing of SupaGlass
in collaboration with Thatcham Vehicle Security, the Fire Brigade, the Police
Scientific Development Branch and Mercedes UK, your Company is working with
Government on the development of a new, anti-theft DIN standard for vehicle
glazing. This development will further underpin SupaGlass's reputation in
critical stress performance areas and for application to a broader range of
vehicles.

[IMG]http://www.pentagon-franchise.com/images/thumbnails/Misc_Vauxhall_Police_car_thumbnail.jpg[/IMG]

[b] The British Police use Pentagon Products to enhance their vehicle privacy, security and safety [/b]

[b] Awards [/b]

The group continues to strengthen its leadership in the retail market behind the
Pentagon SupaGlass brands

Importantly, Pentagon's SupaGlass retail operation should benefit from broad
based independent endorsements of the brand's efficiency. For example, in
[b]October 2003 Pentagon received the Institute of Transport Management's award for
outstanding contribution to the transport industry and we have enjoyed
acknowledgements for SupaGlass's safety and security performance in Fleet World
and What Car magazine. [/b]

[b]A bit about their contracts...[/b]

While interest in and demand for SupaGlass is growing across all key OEMs,
precipitated by our September 2003 Volkswagen contract, the sector has developed
at a slower than pace we were anticipating. What is clear, however, is that
interest with our OEM clients is now increasing.

We have recently successfully managed to agree the implementation details of
Pentagon's contract with the VW group, the first focus of which will be on VW
branded vehicles. In addition, the Citroen Xsara Enterprise vehicle contract,
which was discussed in my 2003 interim report, was also delayed. However,
Citroen has assured us that, due to the quality of Pentagon's performance on
this project, they are very keen to broaden their commercial relationship with
your Company. Honda is another recently acquired client that has appointed
Pentagon to implement a project for solar protection on its vehicle glass.
Although we had an original agreement with Honda for a start date of March 2003,
following personnel changes within the company this was delayed for a number of
months, but we have now commenced work on this project.

In addition, a groundbreaking agreement with Mercedes UK to offer SupaGlass on
all Mercedes vehicles through their dealer networks has also been recently
confirmed, after months of preparation. This work will begin in London,
Birmingham and Manchester during the current fiscal year. Work has also
commenced with Peugeot's van division and we have just received the go ahead
from Mazda to commence work on a range of their vehicles in the course of the
current financial year. Finally, as a result of extensive preparatory work
conducted in the year under review, your Company has recently begun supplying
SupaGlass to London Transport, the London Fire Brigade and the Ministry of
Defence.

[b] Outlook [/b]

In our two lead companies, Pentagon Glass Tech and Filmtek, we have clear
demonstration of product appeal both for SupaGlass and our other protection
technologies. The need for protection across glass of all types continues to
grow, driven by urban criminal violence and terrorism. We are investing too in
the expansion of our presence to the two potentially high growth geographies of
the Middle East and Far East.

We have also seen an improvement in the confidence of our client companies to
increase levels of business with us, resulting from further improvements and
performance accreditation of our technologies and from our client service
levels.

We enter the current year stronger and I and my Board view the future with
confidence.

[b] Financials [/b]

Turnover 1,165,914 Million
Current Assets
Stocks 39,274
Debtors 388,734
Cash in Bank 252,109

Liabilities
Creditors (413,105)

Net Current Assets : 267,012

[b]What do these figures mean? [/b]
Company has more then enough cash to pay of debts and creditors etc.


Chart Looks very sexy, loads of upside potential, and i think its the botttom, so a good time to get in!

Have a read of the website..

http://www.pentagonglasstech.com/homepage.asp

I love tha cars!

Excellent interim results. now swung into profit even though they have stopped the roll out of franchises due to new tinting regulations last year. This in itself shows the long-term policy of the management. These should be on a Northerly journey - 7p in a month......possible IMHO. Just my view, no ramp intended.

The 7p mentioned is almost here. Unlike other posters!!

Ah well, you can lead a horse to water...... 7p came and went, onwards and upwards. I firmly believe we will see 12p within the next six months, let's see if this prediction also comes true.