22 June 2012

Sarantel Group PLC

Update on production order wins

Sarantel Group PLC (AIM: SLG, 'Sarantel' or 'the Group'), a leading manufacturer of high-performance, miniature filtering antennas for mobile and wireless devices, confirms the substantial order received from a leading military radio manufacturer, originally announced on 8 February 2012, is progressing well.

To date, Sarantel has produced and shipped 50% of the total order and is on track to fulfil the remaining customer requirements by February 2013, generating in excess of US$2 million in revenues.

The Group also confirms that its rugged GeoHelix GPS antenna, which is used in the US military's "Rifleman radio", as part of the US Joint Tactical Radio System (JTRS) program, is progressing.

The JTRS program awarded by the US Army, was initially announced by Sarantel's US military subcontractor customer on 7 July 2011.  They have since released further announcements on 14 December 2011 and 23 January 2012 as initial operational tests and evaluations were completed in Fort Bliss, Texas and further afield in Afghanistan.  There is no indication that the alleged US Defense rows have had an impact on the progress of this program.

As stated in Sarantel's announcement dated 28 July 2011, the US Army has indicated a requirement to purchase more than 190,000 Rifleman radios, which would generate revenues in excess of US$6 million for the Group.

David Wither, CEO of Sarantel, said:

"We continue to see strong growth in our key military market and expect revenue flows to gain momentum in the second half of 2012 and into 2013. Sarantel's technology is a critical component to a number of very large military communications programs and we expect these programs to be increasingly important in the coming years.

The backing from of a leading military customer to secure the HSBC loan facility earlier this year, further supports the significance of Sarantel's technology to our military customers."

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About Sarantel

Sarantel is a leader in the design of high-performance miniature antennas for portable wireless applications. Sarantel's revolutionary ceramic filtering antennas offer dramatically improved performance over existing antenna designs, resulting in a clearer signal, better range and a 90per cent reduction in the amount of signal radiation absorbed by the body. Because of their smaller size and higher capabilities, Sarantel's antennas enable manufacturers to create innovative wireless products for the GPS, WiMax, Satellite Radio and Satellite phone markets.

www.sarantel.com