AIS Class B

SOFTWARE RADIO TECHNOLOGY plc                         

           Heads of agreement signed with two prospective customers            

                          for AIS Class B technology                           

The Directors of Software Radio Technology plc ("SRT") are pleased to announce
that SRT has signed heads of agreement with Xanatos Marine Ltd ("Xanatos"), a
Vancouver-based marine systems integrator specialising in AIS coastal
surveillance systems and Comar Systems Limited ("Comar"), a UK-based
manufacturer of AIS products.

Both companies are working on specific projects for which SRT's AIS technology
will provide the key enabling element. The heads of agreement pave the way for
closer co-operation and the finalising of formal contracts during the first
quarter of 2006. The Directors believe the agreements could generate over US$2
million in revenues for SRT during 2006.

Xanatos Agreement

SRT's technology will be used within a project currently being tendered for by
Xanatos, providing surveillance of up to 7,000 vessels in the Americas as part
of a comprehensive regional coastal homeland security project. Further projects
are also being considered.

President of Xanatos, Bill English said, "SRT's AIS product was exactly what we
had been looking for in order to complete the system requirements for this
project. The attraction to us in working with SRT is their expertise in AIS
technologies and the highly competitive cost of their product."

Comar Agreement

Comar is an established manufacturer and distributor of AIS transponders.
Comar's products are sold through a network of distributors and dealers and for
use in `national level' projects. SRT's AIS Class B technology will enable
Comar to develop a competitively priced AIS Class B product for sale into the
worldwide market.

Managing Director of Comar, Peter Cotton said, "Comar has been a pioneer in the
development of the AIS market, particularly for non-Solas vessels. We see
massive worldwide growth in this market as governments, vessel owners and users
respond to security and safety concerns. Our AIS Class B product which will be
based upon SRT's technology should enable us to secure a strong position in
this market."

SRT's Commercial Director, Simon Tucker said, "These agreements demonstrate
SRT's lead in AIS technology following an intensive period of investment to
develop the technology solutions. We believe that the global AIS market has the
potential to be substantial and the strong response to the recent launch of our
AIS Class B technology provides evidence that this will be the case."



Software Radio Technology plc                                    01761 409500
                                                                             
Simon Tucker                                     [e-mail]
                                                                             
Shamus Kelly                                     [e-mail]
                                                                             
Westhouse Securities LLP                                        0161 838 9140
                                                                             
Tim Feather                               [e-mail]
                                                                             
The Communication Group                                         020 7630 1411
                                                                             
Richard Evans                              [e-mail]

Notes for Editors

About SRT

SRT is a developer and licensor of digital wireless technology reference
designs that facilitate the manufacture of sophisticated digital communications
and tracking/surveillance products for use within the professional homeland
security market worldwide.

SRT currently licenses technology solutions for TETRA handsets and automatic
identification systems (AIS) for ships and boats.

SRT was admitted to AIM on 2 November 2005 in conjunction with a placing which
raised approximately £4 million at 35p per share.

About Comar

Based in the UK, Comar is a privately owned company that specialises in the
provision of AIS products.

About Xanatos

Based in Vancouver, Canada, Xanatos Holdings is a privately owned company that
specialises in the provision of AIS integration system solutions.