Interim Results

Sarantel Group PLC
06 June 2005



Embargoed until 7:00                             06 June 2005

                                SARANTEL GROUP PLC

             INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2005


Sarantel Group PLC ('Sarantel' or 'the Company'), the leading manufacturer of
revolutionary filtering antennas for wireless devices, today announces its
unaudited results for the six months ended 31st March 2005. Highlights are as
follows:

   •Turnover increased by 268% to £1.0m (2004: £0.3m)
   •325,000 antenna units shipped, up 563% year on year
   •Operating loss before exceptional non-recurring costs of £2.4m (2004:
    £1.9m) as the Company continues to invest for the future
   •Loss before tax of £2.7m (2004: £1.9m)
   •Order book at 31 March 2005 over £2.0m, up 400% year on year
   •Strong demand for Sarantel's antennas continues to outstrip capacity

-        New equipment installed
-        Additional equipment ordered to further expand capacity

   •Pipeline development for GPS and next generation market sectors on track
   •TomTom now using Sarantel's antenna in its GPS receiver
   •Successful flotation on AIM, raising £16.7m net of expenses

David Wither, Chief Executive Officer, said:

'I am very pleased with the company's progress since listing on AIM in March. As
stated at the time of our IPO, we have spent the first half investing for future
growth and continue to increase our capacity to meet strong market demand for
our technology. The successful commissioning of the new production equipment
remains critical to achieving the full year expectation of shipping not less
than 1m units, prospects for which look encouraging. The Board looks to the
future with confidence.'

An analyst briefing will be held at 9.30am today at the offices of Smithfield,
78 Cowcross Street, London, EC1M 6HE

For further information please contact:

Sarantel Group PLC                                   www.sarantel.com
David Wither, CEO/Sitkow Yeung, CFO                  01933 670560

Smithfield                                           020 7360 4900
Sara Musgrave/Sarah Richardson

Pictures are available for the media to view and download from
www.vismedia.co.uk

NOTES TO EDITORS:

ABOUT SARANTEL

Sarantel designs, manufactures and sells patented, ceramic, filtering antennas
for use in portable wireless devices such as Personal Digital Assistants (PDAs),
laptops and Third Generation (3G) mobile devices. Its current focus is on
producing antennas for the Global Positioning Satellite (GPS) market which allow
a clearer signal than conventional antennas whilst reducing the amount of energy
absorbed by the body by approximately 90 per cent. The antennas simplify system
design, thus allowing design standardisation and reduced time to market and cost
for manufacturers.

As well as GPS, Sarantel's antenna technology is capable of servicing multiple
emerging high volume markets such as Wi-Fi, 3G, Satellite Radio and Bluetooth.
These markets are expected to be key in the future success of mobile network
operators and device manufacturers. Sarantel's antennas significantly improve
the performance of wireless systems by increasing the range and effective
bandwidth. Sarantel is planning to commence high volume delivery of its antennas
into the satellite radio market within the next 12 months.

Sarantel listed on AIM, a market operated by the London Stock Exchange, on 2nd
March 2005 at an issue price of 82p. Sarantel is included in the IT Hardware
sector (93) within the Telecommunications equipment sub-sector (938) and has a
RIC code of SLG.L



CHIEF EXECUTIVE'S STATEMENT

We are pleased to present our first set of interim results since the admission
of the Company to AIM on 2nd March 2005. The Group continues to make solid
progress in establishing its innovative antenna technology in the marketplace
and management is confident that the business will continue to develop in line
with plans.

Trading Results

In the six months to 31st March 2005, turnover grew over 268% to approximately
£1.0m (2004: £0.3m). The number of units shipped in the first six months was
325,000 representing a 563% growth over the same period the previous year and
almost twice the level in the financial year ended September 2004. Passive
antenna products dominated the shipment volumes during the period as a number of
customers, who use the higher-priced active antennas, experienced delays in
their own product launches. The order book at 31 March 2005 was over £2.0m, up
more than 400% year on year.

The operating loss before exceptional non-recurring costs was £2.4m (2004:
£1.9m). The increase in costs reflects the Board's strategy of investing in a
world-class team, capable of executing the significant ramp-up in sales, and the
hiring of additional personnel required in order to operate the factory on a
twenty-four hour basis.

The loss on ordinary activities before taxation was £2.7m (2004: £1.9m).

As stated in the Company's prospectus at the time of the flotation, the
Directors will apply the Company's cash resources to invest in the growth of its
operations and therefore do not propose paying dividends in the near future.

Operational Review

During the first half-year, Sarantel made steady progress in sales of its GPS
products and as anticipated, demand for the Company's antennas far outstripped
capacity. In addition to the Company's existing customers in Taiwan and Korea,
Sarantel secured design wins with a number of new customers including a leading
Taiwanese Original Design Manufacturer (ODM).

Intellectual property is a major asset of the group and the Board is pleased to
report that during the first six months Sarantel consolidated its IP portfolio
with three new patent applications.

In the Company's targeted sectors, including the next generation mobile phone
market, Sarantel continues to make good progress in developing the order
pipeline. Possibly the most exciting development is in the North American
satellite radio market where Sarantel is now working on the development of an
antenna for this rapidly growing industry.

The macro trends in the portable GPS market are also encouraging. A new class of
consumer product is emerging which is referred to as a Portable Navigation
Device (PND). This device combines the functionality of a PDA with the
navigation capabilities of a stand-alone GPS device. Sarantel's antenna solution
is very well suited for this market because of its compact size and high
performance.

The Company is also beginning to see significant activity in the mobile phone
accessory market. TomTom's recently announced decision to use the Sarantel
antenna in its own GPS receiver is a perfect example of the type of innovation
Sarantel's antenna technology enables in the GPS accessory market. The Sarantel
antenna was selected for its small size and exceptional sensitivity.

Finally, we are starting to see early development work on the integration of GPS
into GSM phones. While management believes widespread adoption of GPS into
mobile GSM phones is still a few years away, it is encouraging to see this
development activity begin.

Manufacturing

The Company is accelerating its investment in manufacturing process improvements
and capacity in an attempt to keep up with the rapidly growing demand for
Sarantel's antennas. As highlighted at the time of the Company's flotation,
during the first six months a total of £0.9m was invested in new production
equipment. As previously notified, the first phase of expansion was delayed
because two key suppliers failed to deliver on schedule. These delays prevented
the Company from expanding its capacity in March, as originally expected, and
every effort will be made to make up for the lost time during this financial
year. The new equipment has now been delivered and the commissioning process is
nearly complete. This equipment represents the state of the art in 3D
photolithography and management anticipates an enormous step forward in terms of
production capacity, capability and reliability. In order to meet anticipated
demand for its products in the financial year ending 30 September 2006, the
Company has already ordered additional production equipment.

Management and Staff

Adding capacity to meet rapidly growing market demand for Sarantel's antennas
poses considerable operational challenges and in order to meet this challenge
the Company has assembled a world-class team. Bill Taylor joined the Group at
the start of the year as Chief Operating Officer and his experience with
Motorola and Jabil Circuits Inc provides the Group with the necessary expertise
to scale up its operations. He has already guided his team through the
development of detailed plans and has implemented a number of systems that
Sarantel needs in order to transition the Company from a niche supplier to a
successful high-volume manufacturer.

At the same time, Andrew Christie joined as Director of Engineering. Andrew
brings with him considerable experience from RF MicroDevices. He has begun to
implement the engineering processes necessary to enable Sarantel to successfully
meet the challenges of entering new markets.

As announced separately today, we are delighted to announce the appointment of
John Uttley as Non-Executive Director and Chairman of the Audit Committee. John
joins with a wealth of public company experience having served on the boards of
Energis, National Grid Group, Stentor Communications plc and Glasgow Prestwick
International Airport. This appointment is in line with the Company's commitment
to appoint an additional Non-Executive Director as soon as reasonably
practicable following its admission to AIM.

These three appointments to an already solid senior management team and Board
provide the Company with the appropriate level of skill and experience required
to meet the challenges of the future.

We would also like to take this opportunity to thank all of the employees at
Sarantel for their hard work and remarkable dedication.

Accounting Policies

The financial statements have been prepared under the historical cost convention
in accordance with applicable United Kingdom accounting standards. The Company
has begun examining the impact of adopting IFRS in preparation for a move to
IFRS for the financial year ending 30 September 2007. Further details will be
communicated in due course.

Outlook

Demand for the remainder of the financial year remains strong and the Company
continues to develop the order pipeline required to generate strong growth from
its core GPS market. The Board is very encouraged by the developments in all its
targeted market segments (notably satellite radio) and continues to expect that
these markets will provide significant growth opportunities for Sarantel. The
successful commissioning of the new production equipment remains critical to
achieving the full year expectation of shipping not less than 1m units,
prospects for which look encouraging. The Board looks to the future with
confidence.

David Wither
Chief Executive Officer
6 June 2005



SARANTEL GROUP PLC
CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT

For the period ended 31 March 2005

                                      6 months to   6 months to   12 months to
                                         31 March      31 March   30 September
                           Note              2005          2004           2004
                                        Unaudited    Unaudited         Audited
                                                £            £               £

Turnover                                1,012,677      275,100         839,325
                                        _________    _________      __________
Operating costs

Change in stocks of
finished goods and work 
in progress                               (64,805)      92,675          74,674
Raw materials and
consumables                              (850,542)    (299,000)       (364,398)
Total material cost                      (915,347)    (206,325)       (289,724)
                                        =========    =========      ==========
Other operating income                          -            -          94,736
Other external charges                   (105,522)      25,200        (141,565)
Staff costs                            (1,326,889)    (768,000)     (1,500,398)
Other operating charges                (1,396,728)  (1,267,475)     (2,992,700)
                                        _________    _________      __________
                                       (2,829,139)  (2,010,275)     (4,539,927)

Operating (loss)
______________________________________________________________________________
before depreciation
and exceptional
non-recurring costs                    (2,055,325)  (1,589,500)     (3,069,915)
depreciation and other
amounts written off
tangible and intangible
assets                                   (371,518)    (352,000)       (920,411)
exceptional non-recurring
costs                        2              (304,966)           -               -
______________________________________________________________________________

Operating loss                         (2,731,809)  (1,941,500)     (3,990,326)

Interest receivable and
similar income                             73,630       14,900          34,617
                                        _________    _________      __________
(Loss) on ordinary
activities before
taxation                               (2,658,179)  (1,926,600)     (3,955,709)

Tax on (loss)
on ordinary
activities                3                40,000            -         200,228
                                        _________    _________      __________
(Loss) on ordinary
activities after 
taxation                               (2,618,179)  (1,926,600)     (3,755,481)
                                        =========    =========      ==========
Earnings per share
- basic                   4                  (7.6)p       (6.3)p         (12.2)p
                                        _________    _________      __________




SARANTEL GROUP PLC

CONSOLIDATED SUMMARISED BALANCE SHEET AT 31 MARCH 2005

                            31 March 2005   31 March 2004    30 September 2004
                                Unaudited       Unaudited              Audited
                                        £               £                    £

Fixed assets                    3,795,915       3,423,900            3,137,265

Current assets
Stocks                            227,905         343,400              363,816
Debtors                           642,038         382,730              607,282
Cash at bank and in hand       16,722,895         611,900            2,069,046
                               __________       _________            _________
                               17,592,838       1,338,030            3,040,144

Creditors: amounts falling
due within one year            (1,509,199)     (1,231,130)            (804,944)
                               __________       _________            _________
Net current assets             16,083,639         106,900            2,235,200
                               __________       _________            _________
Total assets less current
liabilities                    19,879,554       3,530,800            5,372,465

Creditors: amounts falling
due after more than one
year                              (74,570)              -              (27,127)

                               19,804,984       3,530,800            5,345,338
                               ==========       =========            =========
Share capital                   5,293,796       3,080,348            3,080,348
Share premium                  14,330,532               -                    -
Other reserve                  13,389,540       9,290,554           12,855,695
Profit and loss account       (13,208,884)     (8,840,102)         (10,590,705)
                               19,804,984       3,530,800            5,345,338
                               __________       _________            _________



SARANTEL GROUP PLC

CONSOLIDATED SUMMARISED CASH FLOW STATEMENT
For the period ended 31 March 2005

                                      6 months to   6 months to   12 months to
                                         31 March      31 March   30 September
                           Note              2005          2004           2004
                                        Unaudited    Unaudited         Audited
                                                £            £               £
Net cash (outflow) from
operating activities        5          (1,598,510)    (857,512)     (3,095,544)

Returns on investments
and servicing of finance                   73,630       14,900          34,617

Research & Development
tax received                              125,000            -         172,000

Capital expenditure                    (1,024,096)    (244,320)       (442,881)

Acquisitions and disposals                      -            -         850,000

Financing                              17,077,825      428,554       3,280,576

Increase/(decrease) in 
cash                        6          14,653,849     (658,378)        798,768
                                       __________     ________       _________



SARANTEL GROUP PLC

OTHER PRIMARY STATEMENTS
For the period ended 31 March 2005

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                      6 months to   6 months to   12 months to
                                         31 March      31 March   30 September
                                             2005          2004           2004
                                        Unaudited     Unaudited        Audited
                                                £             £              £

(Loss) for the period                  (2,618,179)   (1,926,600)    (3,755,481)

Issue of shares net of expenses
(£1,481,737)                           17,077,825       434,005      4,077,424
                                       __________     _________      _________
Net increase/(decrease) in
shareholders' funds                    14,459,646    (1,492,595)       321,943
Opening shareholders' funds             5,345,338     5,023,395      5,023,395
                                       __________     _________      _________
Closing shareholders' funds            19,804,984     3,530,800      5,345,338
                                       __________     _________      _________


SARANTEL GROUP PLC

NOTES TO THE INTERIM RESULTS

1 BASIS OF PREPARATION

The interim financial statements have been prepared in accordance with
applicable accounting standards and under the historical cost convention.

Sarantel Group plc acquired the share capital of Sarantel Limited on a share for
share exchange following a group restructure. This restructure has been
accounted for using merger accounting.

The principal accounting policies of the group have remained unchanged from
those set out in the group's 2004 annual report and financial statements.

The interim financial information in this report has neither been audited nor
reviewed by the company's auditors.

2 EXCEPTIONAL NON-RECURRING COSTS

                                      6 months to    6 months to   12 months to
                                         31 March  31 March 2004   30 September
                                             2005                          2004
                                                £              £              £

Stock write-off                          (109,198)             -              -
Variation of Share Exchange
Agreement                                (115,000)             -              -
Non-recurring professional charges        (80,768)             -              -
Total exceptional non-recurring 
costs                                    (304,966)             -              -
                                          _______     __________    ___________
Stock write-off

The stock write-off relates to one discontinued product and other stock rendered
obsolete through continuing process improvements.

Variation of Share Exchange Agreement

As set out in note 15 to the accounts for the year to 30 September 2004, the
company entered into a share for share exchange, which resulted in a profit on
disposal of £94,736 which was shown in other operating income. On 23 February
2005, the share for share exchange agreement was varied and following
shareholders consents, additional shares were issued to the parties to the share
exchange agreements to the value of the consideration received for the sale of
the subsidiary amounting to £115,000.

3 TAX ON (LOSS) ON ORDINARY ACTIVITIES

                                      6 months to    6 months to   12 months to
                                         31 March  31 March 2004   30 September
                                             2005                          2004
                                                £              £              £
Current tax
UK corporation tax based on the results
for 6 months to 31 March 2005              40,000              -        200,228
                                           ======         ======        =======

The taxation credit arises in respect of research and development expenditure
and is subject to agreement with the Inland Revenue.

4 EARNINGS PER SHARE 

The calculation of the basic earnings per share is based on the earnings
attributable to ordinary shareholders divided by the weighted average number of
shares in issue during the year. Shares held in employee share trusts are
treated as cancelled for the purposes of this calculation.

Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below.

                                   Basic earnings per share
                                                                 £

6 months to 31 March 2005
Earnings                                                (2,618,179)
Weighted average number of shares                       34,438,823
Per share amount pence                                        (7.6)p

6 months to 31 March 2004
Earnings                                                (1,926,600)
Weighted average number of shares                       30,803,473
Per share amount pence                                        (6.3)p

12 months to 30 September 2004
Earnings                                                (3,755,481)
Weighted average number of shares                       30,803,473
Per share amount pence                                       (12.2)p


5 NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES  

                                      6 months to   6 months to   12 months to
                                         31 March      31 March   30 September
                                             2005          2004           2004
                                        Unaudited     Unaudited        Audited
                                                £             £              £

Operating (loss)                       (2,731,809)   (1,941,500)    (3,990,326)
Depreciation                              371,518       352,000        920,411
(Profit) on sale of tangible fixed
assets                                          -             -        (94,736)
Decrease/(increase) in stock               26,713      (115,783)      (136,199)
Decrease/(increase) in debtors            (90,244)       96,781        (93,473)
Increase in creditors                     601,114       750,990        298,779
Non-cash exceptional non-recurring
costs                                     224,198             -              -
Net cash (outflow) from operating
activities                             (1,598,510)     (857,512)    (3,095,544)
                                        _________    __________      _________


6 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT  

                                      6 months to   6 months to   12 months to
                                         31 March      31 March   30 September
                                             2005          2004           2004
                                        Unaudited     Unaudited        Audited
                                                £             £              £
Increase/(decrease) in cash
in the period                          14,653,849      (658,378)       798,768
Net funds at beginning of period        2,069,046     1,270,278      1,270,278
Net funds at end of period             16,722,895       611,900      2,069,046
                                       __________    __________      _________

PUBLICATION OF NON-STATUTORY ACCOUNTS

The financial information set out in this interim report does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The
figures for the year ended 30 September 2004 have been extracted from the
statutory financial statements which have been filed with the Registrar of
Companies. The auditors' report on those financial statements was unqualified
and did not contain a statement under Section 237(2) of the Companies Act 1985.







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