18 October 2011

Sarantel Group PLC

Trading update for the year ended 30 September 2011

Sarantel Group PLC (AIM: SLG, 'Sarantel' or 'the Group'), a leading manufacturer of high-performance, miniature filtering antennas for mobile and wireless devices, announces a trading update for the year ended 30 September 2011.

For the second half, the Group reported an increase in unit sales of 21% and an increase in revenues of 30% amid challenging trading conditions in the company's core consumer GPS market. Total revenues for the year ended 30 September 2011 are expected to be 24% lower than the previous financial year at £2.2 million, largely as a result of the delayed orders announced at the half year stage from two of the Group's largest customers. Revenues from new product developments during the full financial year, however, increased by 143% compared to 2010 as the Group's investment in R&D continues to bear fruit.

Sarantel has made significant progress with the development of its sales and distribution network, which has helped the Group add more than 250 new customers during the year. The addition of a number of new GPS customers and recovery in demand from existing GPS customers drove an increase in GPS unit volumes.

Sarantel continues to make very strong progress in military and other high-value markets, receiving customer funding to develop a number of ruggedized GPS and satellite communication antennas that are now being sold as part of a growing portfolio of high value products. This progress is evidenced by the recently announced production orders from General Dynamics and from a leading European electronics company that supplies a wide range of defence and homeland security products throughout the world.

The Group shipped product to more than 450 customers during the year across a diversified customer base. The company announces today in a separate release the successful completion of field trials with a Japanese camera manufacturer.

Sarantel has successfully raised £3.5 million (before expenses) through two placings during the year to fund sales growth and development. At 30 September 2011, the Group had a net cash balance of £1.2 million.

The Board remains confident of Sarantel's potential, particularly now that GPS location is  becoming an important feature on a large number of consumer applications such as digital cameras. Although it remains difficult to predict timing and size of volume contracts, interest from potential customers is stronger than ever and Sarantel's board believes that such applications will drive the need for the higher performance and greater accuracy offered by its antennas.

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About Sarantel www.sarantel.com

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.