TETRA Technology Supply Agreement

SOFTWARE RADIO TECHNOLOGY PLC TETRA technology supply agreement with German handset manufacturer The Directors of Software Radio Technology plc ("SRT" or the "Company") are pleased to announce that SRT has entered into an agreement with PMRS GmbH ("PMRS") of Germany for the supply of TETRA handset technology in the form of its RF ASIC chip. The initial agreement is worth a minimum of Euro 350,000 over the next 12 months with further upside as handset sales increase. The first delivery of 1,600 units was made at the end of January. PMRS is the only German-based manufacturer of TETRA handsets and is seeking to address the demand created by the German government's recent announcement of its decision to roll out a national TETRA network with a capacity of up to 500,000 users. The network is primarily being developed for the emergency services such as the police, fire and ambulance services. The Directors understand that these markets will be the principal targets for PMRS. Simon Tucker, SRT's Managing Director said, "SRT has invested substantially in its TETRA technology. We are excited that our highly scalable business model will start to generate royalty revenues during 2007. Our engineering teams will support PMRS to ensure that their target opportunities are maximised for our mutual benefit." Enquiries: Software Radio Technology plc 01761 409500 Simon Tucker Managing Director Hanson Westhouse Limited 0113 246 2610 Tim Feather About SRT: Founded in 1987 and quoted on AIM in 2005, SRT focuses on the development of turnkey technology product solutions for homeland security applications. SRT's technologies are used by manufacturers to fast track and de-risk the development of their own products. SRT has focused on the areas of professional voice and data radio communications such as TETRA and maritime identification and tracking systems, such as AIS: both of which are global standards. The company has a worldwide customer base with a business model based on customers paying royalties on each product manufactured. About PMRS: PMRS is a German based and owned company which manufacturers a variety of radio communications equipment. TETRA is a recent addition to its product line. www.pmrs-gmbh.com
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