8 October 2008

Sarantel Group PLC

("Sarantel", the "Company" or the "Group")

Year end trading update

Sarantel (AIM: SLG), the leading manufacturer of revolutionary filtering antennas for mobile and wireless devices, announces a year end trading update for the 12 months to 30 September 2008.

Revenues for the year are expected to be approximately £1.9 million, which is ahead of market expectations. In the second half of the financial year, demand from smaller niche GPS customers remained resilient largely offsetting a slowdown in orders from larger GPS customers. During September, Sarantel made the first shipments of satellite telephone antennas as part of the order announced on 30 June 2008, from a global satellite phone services provider. 

The Group has started to gain traction for its third generation GPS antenna and is also in advanced discussions to develop multiple antennas for a number of customers in the satellite phones and military sectors. The Board remains confident about the Group's growth prospects as the order backlog at the end of September 2008 is providing good visibility for the first half of 2009.  

At 30 September 2008, the Group had cash balances of £3 million. Having completed two placings in March and April 2008 of £3.4 million, in aggregate, the Board believes that the Group has sufficient cash resources to support the business for the foreseeable future. 

On 9 October 2008, the Company will be hosting a visit by institutional investors to its headquarters in Wellingborough. No new material information will be disclosed during this visit.

Sarantel expects to publish its preliminary result for the year to 30 September 2008 in early December.  

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