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Jason gives a fluent pitch for his protection solutions for laptops and mobiles, pointing out that their unique selling point is a hard-wearing fabric, d3o, that goes into all the protection cases.

Theo Paphitis wants to know more about Jason and he reveals that while he has been involved in the bagging business for the last 13 years, he now wants to set up his own business.

Theo wants to know how he can possibly value his business at £3million and Jason replies that it is based on turnover figures of £1.5m in the current year. He reveals that his turnover was £650,00 in the last financial year. This generated a gross profit of £250,000 and while the net profit was only £20,000 this was in fact £170,000 - he ploughed £150,000 back into the development of these new products.

Peter Jones is still incredulous that he can value his business at £3m.

Jason points out it is also based on contracts he has on the table with two key mobile phone handset manufacturers. If he were to supply the 100,000 pieces they were requesting, he would generate a £250,000 turnover.

These figures do not impress James Caan who is more concerned about how the business is performing presently.

Jason points out that in the last six months he has generated £350,00 in turnover but struggles to say what his profits are on this.

James wants to know whether he has monthly managed accounts on a business valued at £3m and he says no, he does not.

James then asks who is his biggest customer. Jason replies it is a major computer manufacturer but he cannot say exactly how much they have spent.

James opines that while Jason is accurate about what he might do in the future he is "woolly" about the here and now. Not to know what his current profit figure is makes James "nervous" about investing in him and for those reasons he is out.

Duncan Bannatyne chips in to say that because he doesn't believe for a minute that his company is worth £3m he will not be investing in Tech 21 either. He, too, is out.

Theo wants to know what is the biggest pressure Jason has in his business at the moment.

Jason replies it is without doubt securing the three year global exclusivity with d3o for the mobile technology market and that it would take £100,000 of money he doesn't have to secure it.

However the London-based entrepreneur adds that he does have another deal on the table with an American computer manufacturer that would be worth US$180.000.

Deborah Meaden is intrigued by this deal and Jason hands over the contract on request.

Peter Jones says Jason's evaluation is ridiculous but that he has done an amazing job in creating such hard-wearing and durable products. He believes that with the right marketing and contacts there would be a space for the entrepreneur in the highly competitive computer and mobile-phone market. On that basis he is prepared to offer him half the money he is seeking for a 20% equity. He defends the high level of equity on the value his contacts and knowledge of the business would bring.

Theo points out he sells may thousand laptop cases every year and while he is impressed with the entrepreneur he is concerned about the risks involved. He is prepared to match Peter's offer - half the money for a 20% equity.

Deborah hesitates making an offer as she freely admits she doesn't have the same contacts or industry knowledge as her two fellow Dragons. But just to give Jason some flexibilty in his negotiations she is prepared to offer half the money for 15%.

Jason tries to negotiate Peter down but the man who has made much of his considerable fortune in the telecommunications industry will not moved - he knows his value and feels he has made a fair offer.

Jason appreciates the expertise both male Dragons would bring to his range of products and after politely declining Deborah's bid, he accepts the offer made by Peter and Theo.

The deal done in the Den;

Theo Paphitis & Peter Jones: £150,000 for a 40% equity in Tech 21.