Issue of Equity

Sarantel Group PLC
31 March 2008


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                                                                   31 March 2008


                               Sarantel Group PLC
                         ('Sarantel' or the 'Company')

                   Placing to raise approximately £3 million

Sarantel announces that it has conditionally raised approximately £3 million,
before expenses, from the placing by John East & Partners Limited of 101,167,400
A Ordinary Shares of 1 pence each in the capital of the Company at 3p per share
with institutional and other investors. The placing is conditional on, amongst
other things, the passing of certain resolutions at the general meeting of the
Company and on admission of the new A Ordinary Shares to trading on AIM.


Background to and reasons for the Placing

In its trading statement issued on 12 November 2007, the Company indicated that
sales for the year to 30 September 2007 remained depressed, principally due to
the slower than expected development of the market for handheld GPS devices
containing the Group's second generation GPS antenna, together with lower volume
sales of portable satellite radio units.


Significant developments since that trading statement was made include:


   • a broad based recovery in shipments of the second generation GPS
     antenna;


   • the selection of the Group's GeoHelix GPS antenna by Garmin, to be used
     exclusively in its new Colorado range of handheld GPS receivers;


   • the selection of the Group's newly launched third generation GPS
     antenna, the world's smallest GPS antenna, by a major Asian consumer
     electronic OEM customer;


   • the selection of the Group's GeoHelix GPS antenna for a ruggedised
     mobile phone by Sonim;


   • the award of a development contract for a GPS antenna for its tactical
     military radios from a major US military radio supplier; and


   • the award by Iridium, the satellite phone operator, to the Group of a
     development contract for an antenna for its new generation of satellite
     phones.


The Company's cash resources as at 30 September 2007 were £2.4 million (of which
£0.7 million was blocked to secure leasing liabilities). Current monthly
overheads are approximately £0.3 million. In order to improve the cash resources
of the Group, the Directors have decided to effect the Placing. The proceeds of
the Placing, which amount to approximately £2.7 after expenses, will allow the
Group to continue to develop the customer pipeline for both its second and third
generation GPS antennas and provide working capital generally.


It is the Board's view that the Placing is the most appropriate means of
providing additional working capital for the Group. The cost of funds raised
through the Placing are substantially less than those for an open offer or
rights issue to Shareholders. These alternatives would have required the
publication of a prospectus, which would have delayed the fund raising and would
also have cost the Company a significantly higher percentage of the funds being
raised.


Capital Reorganisation

The Placing Price is below the present nominal value of the Existing Ordinary
Shares. Company law prohibits a company from issuing shares at a discount to the
nominal, or par, value of its shares. Therefore, in order to carry out the
Placing, it is necessary to reduce the nominal value of the Company's authorised
and issued A Ordinary Shares and B Ordinary Shares. Accordingly, the Directors,
propose to effect a share reorganisation on the following basis:


(a) each of the issued A Ordinary Shares of 10p will be subdivided and
redesignated into one New A Ordinary Share and one Deferred Share;


(b) each of the issued B Ordinary Shares of 10p will be subdivided and
redesignated into one New B Ordinary Share and one Deferred Share;


(c) each of the authorised and unissued A Ordinary Shares will be subdivided
into 10 New A Ordinary Shares; and


(d) each of the authorised and unissued B Ordinary Shares be subdivided into 10
New B Ordinary Shares.


The rights attaching to the New A Ordinary Shares and New B Ordinary Shares
will, apart from the change in nominal value and the entitlement of Shareholders
in respect of a return of capital arising from them, be identical in all
respects to those of the A Ordinary Shares and the B Ordinary Shares,
respectively.


The Deferred Shares will have no voting rights and will not carry any
entitlement to attend general meetings of the Company; nor will they be admitted
to AIM or any other market. They will carry only a priority right to participate
in any return of capital to the extent of £1 in aggregate over the class. In
addition, they will carry only a priority right to participate in any dividend
or other distribution to the extent of £1 in aggregate over the class. In each
case, a payment to any one holder of Deferred Shares shall satisfy the payment
required. The Company will be authorised at any time to effect a transfer of the
Deferred Shares without reference to the holders thereof and for no
consideration.


Accordingly, the Deferred Shares will, for all practical purposes, be valueless
and it is the Board's intention, at an appropriate time, to have the Deferred
Shares cancelled, whether through an application to the Companies Court or
otherwise. Existing share certificates will continue to be valid following the
Capital Reorganisation and no certificates will be issued in respect of the
Deferred Shares.


The Placing

Under the terms of the Placing Agreement, JEP has conditionally placed, as agent
for the Company, 101,167,400 New A Ordinary Shares at the Placing Price to raise
approximately £3 million (gross) and approximately £2.7 million (net of
expenses) for the benefit of the Company.


In addition to a corporate finance fee and the placing commission, JEP will be
issued with warrants to subscribe for 1,776,029 New A Ordinary Shares at 3p per
share exercisable until 25 April 2013.


The Placing is conditional, inter alia, upon First Admission taking place by 8:
00am on 25 April 2008 (or such later date, being not later than 31 May 2008, as
the Company and JEP may agree) and Second Admission taking place by 8:00am on 28
April 2008 (or such later date, being not later than 31 May 2008, as the Company
and JEP may agree).


The Placing Agreement contains provisions entitling JEP to terminate the Placing
Agreement at any time prior to First Admission in certain circumstances. If this
right is exercised, the First Placing and the Second Placing will lapse. The
Placing Agreement contains provisions entitling JEP to terminate its obligations
in respect of the Second Placing where certain circumstances arise after the
First Placing and prior to the Second Placing. The First Placing is not
dependent upon the Second Placing occurring. However the Second Placing cannot
occur unless the First Placing has occurred.


The Placing of the New Ordinary Shares will take place in two tranches;


(a)   the First Placing amounting to 25,933,700 A New Ordinary Shares; and

(b)   the Second Placing amounting to 75,233,700 A New Ordinary Shares.


The Placing Shares, when issued and fully paid, will rank equally in all
respects with the issued New A Ordinary Shares, including the right to receive
all dividends and other distributions declared, made or paid after the relevant
Admission.


It is expected that First Admission will become effective and dealings in the
First Placing Shares and the issued New A and New B Ordinary Shares will
commence on 25 April 2008 and that Second Admission will become effective and
dealings in the Second Placing Shares will commence on 28 April 2008.


Directors' participation in the Placing

John Uttley, David Wither, Sitkow Yeung and Geoff Shingles have conditionally
agreed to subscribe respectively for 500,000, 500,000, 200,000, and 333,400
Second Placing Shares at the Placing Price in the Placing, which will represent
0.28 per cent., 0.28 per cent., 0.11 per cent., 0.19 per cent. respectively of
the Enlarged Issued Share Capital. Immediately following Second Admission John
Uttley, David Wither, Sitkow Yeung and Geoff Shingles will hold 711,876,
702,079, 200,000 and 579,132 New A Ordinary Shares, equivalent to 0.40 per
cent., 0.40 per cent., 0.11 per cent. and 0.33 per cent. respectively of the
Enlarged Issued Share Capital.


Taxation

The following paragraphs apply to the Company and to persons and entities who
are holders of Existing Ordinary Shares and /or proposed holders of New A
Ordinary Shares under the Placing and resident in the UK. The information is
based on current UK legislation and practice, is subject to changes therein, is
given by way of general summary and does not constitute legal or tax advice.


If you are in doubt about your tax position, or if you are subject to tax in a
jurisdiction other than the UK, you should consult your independent financial
adviser.


a. Capital Reorganisation

The Company has received confirmation that the Capital Reorganisation will not
affect the treatment of Shareholders' holdings of shares in the Company
(including, for these purposes, under the venture capital trust and enterprise
incentive scheme ('VCT' and 'EIS' respectively) legislation). Each issued New
Ordinary Share to be created under the Capital Reorganisation will be treated as
having been acquired at the same time and for the full cost of the original
Existing Ordinary Share from which it derives and the creation and any
subsequent cancellation of the Deferred Shares will not trigger a disposal.


In summary, the New Ordinary Shares will replace the Existing Ordinary Shares.


The Company has obtained clearance under the current tax legislation that the
Capital Reorganisation is being effected for bona fide commercial reasons and
not for the purposes of tax avoidance. As such, the Company does not consider
that HM Revenue & Customs will seek to treat any aspect of the Capital
Reorganisation as a distribution for the purposes of income tax.


b. Placing

The Company has previously obtained clearance from HM Revenue & Customs that
subscriptions made to date in the Company by VCTs and investors seeking EIS
relief constituted qualifying holdings under VCT and EIS legislation.


The Company has obtained a further clearance from HM Revenue & Customs that the
Placing Shares will also qualify as a qualifying holding for VCTs and for
investors seeking EIS relief as follows:


   • First Closing - investment will, subject to investors' own personal
    circumstances, for EIS relief and as a qualifying holding for funds raised
    by VCTs on or after 6 April 2007; and


   • Second Closing - investment will, subject to investors' own personal
    circumstances, for VCT funds raised before 6 April 2007.


Although the Company satisfies the relevant conditions contained in the VCT and
EIS legislation, neither the Company nor the Directors make any representation
or warranty or give any undertaking that VCT and EIS relief will be available in
respect of any investment in the Placing Shares, nor do they represent, warrant
or undertake that the Company will keep its qualifying status throughout the
relevant holding periods for VCTs and EIS investors or that, once given, such
relief will not be withdrawn.


Employee share options

The Company operates the following employee share option schemes: the Sarantel
2000 Unapproved Executive Share Option Scheme; the 2005 Scheme; the Sarantel
Sharesave Scheme; and the Sarantel Long Term Incentive Plan (together, the
'Share Schemes').


Summaries of the principal terms of the Share Schemes have previously been
provided to shareholders in the following documents: the Company's AIM admission
document, the notice of the Company's 2006 annual general meeting; and the
Chairman's letter accompanying the notice of the Company's 2007 annual general
meeting. All of the subsisting options under the Share Schemes (including those
granted at nominal value under the Sarantel Long Term Incentive Plan) are
currently underwater (i.e. the exercise price per Ordinary Share is higher than
the current market value of an Ordinary Share).


The numbers of Ordinary Shares under option under each of the Share Schemes and
the option exercise prices will not be adjusted to take account of the proposed
Capital Reorganisation, as, in the opinion of the Directors, the Capital
Reorganisation will not affect the value of the subsisting options.


The Capital Reorganisation will cause a 'disqualifying event' in relation to
each of the options granted by the Company as qualifying enterprise management
incentive options ('EMIs'). EMI options are normally exempt from income tax and
National Insurance contributions ('NICs') when such options are exercised, and
the beneficial rate of business assets taper relief for capital gains tax
applies from the date of grant of such options. The effect of a 'disqualifying
event' is that, with effect from the date of the disqualifying event, the EMI
options cease to have these tax benefits, meaning that any growth in value of
the underlying shares after that date is subject to income tax and NICs, and the
beneficial taper relief treatment is lost. In any event, the beneficial taper
relief treatment will no longer apply from 6 April 2008, as taper relief as a
whole will then be abolished. However, as all of the Company's subsisting share
options are underwater, this is unlikely to disadvantage existing optionholders.


Amendment of the 2005 Scheme

The 2005 Scheme enables the Company to grant market value share options to
selected employees of the Group. Shareholder approval is being sought to allow
the Directors to amend the overall limit on the grant of options over New A
Ordinary Shares under the 2005 Scheme.


Currently, the Directors are only able to grant options over new issue Ordinary
Shares under the 2005 Scheme up to a maximum of 2.5 per cent. of the ordinary
share capital in issue at the time Ordinary Shares were first admitted to
trading on AIM (on 2 March 2005). The Company has reached this limit and
therefore is seeking shareholder approval to amend this limit in order that
further options can be granted under the 2005 Scheme in future, should the
Company's remuneration committee recommend.


The Company proposes to amend rule 6.1 of the 2005 Scheme to bring it into line
with the Sarantel Sharesave Scheme, which provides that the grant of
subscription options under that scheme and any other employees' share scheme
operated by the Company is limited to a maximum of 10 per cent. of the issued
share capital in any rolling 10 year period.


Under all of the Share Schemes, options granted before Ordinary Shares were
first admitted to trading on AIM on 2 March 2005 and any options to be satisfied
by the transfer of existing Ordinary Shares are left out of account. The
proposed amendment to rule 6.2 of the 2005 Scheme is a consequential amendment
as a result of the amendment of rule 6.1, and is intended to ensure that such
options continue to be left out of account.


The Company adopted the Sarantel Long-Term Incentive Plan (the 'LTIP') in 2007,
under which nominal cost and nil-cost options may be granted to selected
executives. However, the Company would also like to retain the ability to grant
further market value options under the 2005 Scheme in appropriate circumstances.
The Directors therefore consider that the proposed amendments to the 2005 Scheme
would benefit the Company by giving it the flexibility to choose whether to
grant market value options under the 2005 Scheme or nominal or nil-cost options
under the LTIP, as the LTIP may not be suitable for all circumstances.


The Company is currently considering granting new options under the 2005 Scheme
to Directors and members of the senior management team. No decision has been
reached as to the number of such options, the exercise price, or, indeed, that
any options will definitely be granted.



Annual General Meeting

The Annual General Meeting of the Company has been convened for 10.00 a.m. on 24
April 2008. The notice convening the AGM is set out in the report and accounts
for the year ended 30 September 2007.


General Meeting

A General Meeting of the Company has been convened for 10.05 a.m. (or such later
time as the AGM of the Company to be held at 10.00 a.m. on the same day shall be
concluded or adjourned) on 24 April 2008 at the offices of JEP, 10 Finsbury
Square, London EC2A 1AD.


The Resolutions seek to:


(a) approve the Capital Reorganisation;


(b) authorise the directors to allot the Placing Shares and issue the Warrants;


(c) disapply statutory pre-emption rights in respect of the allotment of the
Placing Shares and the issue of Warrants;


(d) amend the Company's Articles of Association; and


(e) amend the rules of the 2005 Scheme.


Following the proposed Placing, the Company will have 177,602,931 ordinary
voting shares in issue. It is intended that application will be made for the New
A Ordinary Shares to be admitted to trading on AIM. The First Admission is
expected to be on 25 April 2008. The Second Admission is expected to be on 28
April 2008.


Further information:

Sarantel

David Wither, Chief Executive Officer                              01933 670 560
Sitkow Yeung, Finance Director

John East & Partners Limited                                       020 7628 2200

John East/Simon Clements

College Hill                                                       020 7457 2020

Adrian Duffield/ Ben Way


This announcement is for information purposes only and does not constitute an
offer or invitation to acquire or dispose of any securities or investment advice
in any jurisdiction.


John East & Partners Limited, which is authorised and regulated by the Financial
Services Authority, is acting exclusively for the Company and no one else in
connection with the Placing and will not be responsible to anyone other than the
Company for providing the protections afforded to customers of John East &
Partners Limited or for providing advice in relation to the Placing or any
transaction or any other matters referred to herein.


Past performance is no guide to future performance and persons needing advice
should consult an independent financial adviser.


The information contained in this announcement is not for release, publication
or distribution, directly or indirectly, to persons in the United States,
Australia, Canada, Japan or the Republic of South Africa or in any jurisdiction
in which such publication or distribution is unlawful. The Placing Shares have
not been and will not be registered under the United States Securities Act of
1933, as amended, or under the laws of any state of the United States. This
announcement does not constitute an offer to sell or issue, or the solicitation
of an offer to buy or subscribe for, securities in the United States, Australia,
Canada, Japan or the Republic of South Africa or in any jurisdiction in which
such offer or solicitation is unlawful and should not be relied upon in
connection with any decision to acquire Placing Shares or other securities in
the capital of the Company. There will be no public offer of Placing Shares in
the United Kingdom or elsewhere.



                                  Definitions

'2005 Scheme'   the Sarantel 2005 Unapproved Share Option Scheme

'A Ordinary     'A' ordinary shares of 10 pence each in the capital of the
Shares'         Company

'Act'           the UK Companies Act 1985 (as amended) or as replaced by the
                Companies Act 2006 or otherwise

'Admission'     the First Admission and the Second Admission, or in the event
                that Second Admission does not occur, First Admission

'AIM'           the AIM market of London Stock Exchange plc

'AIM Rules'     the AIM Rules for Companies issued by the London Stock Exchange
                plc as amended from time to time

'Annual General the annual general meeting of the Company to be held at 10.00
Meeting' or     a.m. on 24 April 2008 and any adjournment thereof
'AGM'

'B Ordinary     'B' ordinary shares of 10 pence each in the capital of the
Shares'         Company

'Capital        the proposed subdivision of each Existing Ordinary Share into
Reorganisation' one New Ordinary Share and one Deferred Share

'Company' or    Sarantel Group PLC
'Sarantel'

'Computershare' Computershare Investor Services PLC
'Deferred       the deferred shares of 9p each arising from the Capital
Shares'         Reorganisation

'Directors' or  the directors of the Company as set out in the circular to
'Board'         shareholders

'EIS'           the Enterprise Investment Scheme and related reliefs as detailed
                in Income Tax Act 2007, Part V and in sections 150A to 150C and
                Schedule 5B and 5BA of the Taxation of Chargeable Gains Act 1992
                (as amended)

'Enlarged       the issued New Ordinary Shares immediately following Admission
Issued Share
Capital'

'Existing       the 76,435,531 Ordinary Shares in issue at the date of this
Ordinary        announcement
Shares'

'First          the effective admission of the New A and New B Ordinary Shares
Admission'      in issue immediately following the Capital Reorganisation and
                the First Placing Shares to trading on AIM, in accordance with
                the AIM Rules

'First Placing' the placing of the First Placing Shares pursuant to the Placing

'First Placing  the 25,933,700 New A Ordinary Shares to be issued pursuant to
Shares'         the First Placing

'Form of Proxy' the form of proxy enclosed with the circular to Shareholders for
                use by Shareholders in connection with the GM

'GM' or         the general meeting of the Company convened for 10.05 a.m. (or

'General        such later time as the AGM on the same day shall have concluded
Meeting'        or been adjourned) and any adjournment thereof, on 24 April
                2008, notice of which is set out in the circular to Shareholders

'Group'         the Company and its subsidiary undertakings

'JEP'           John East & Partners Limited, the Company's Nominated Adviser
                and Broker

'New Ordinary   the New A Ordinary Shares and New B Ordinary Shares
Shares'

'New A Ordinary the new A ordinary shares of 1p each in the capital of the
Shares'         Company arising from the Capital Reorganisation

'New B Ordinary the new B ordinary shares of 1p each in the capital of the
Shares'         Company arising from the Capital Reorganisation

'Ordinary       together the A Ordinary Shares and B Ordinary Shares
Shares'

'Placees'       the subscribers for Placing Shares pursuant to the Placing

'Placing'       the conditional placing of the Placing Shares at the Placing
                Price pursuant to the Placing Agreement

'Placing        the conditional agreement dated 31 March 2008 between the
Agreement'      Company, JEP and the Directors of the Company

'Placing Price' 3p per Placing Share

'Placing        the 101,167,400 New A Ordinary Shares which have been
Shares'         conditionally placed by JEP

'Proposals'     the proposals set out in the circular to Shareholders, namely
                the Placing, the Capital Reorganisation and the Rule Change

'Resolutions'   the resolutions set out in the notice of General Meeting

'Rule Change'   the proposed changes to the rules of the 2005 Scheme, details of
                which are set out in the circular to Shareholders

'Second         the effective admission to trading on AIM of the Second Placing
Admission'      Shares in accordance with the AIM Rules

'Second         the placing of the Second Placing Shares pursuant to the Placing
Placing'

'Second Placing 75,233,700 New A Ordinary Shares to be issued pursuant to the
Shares'         Second Placing

'Shareholders'  holders of Existing Ordinary Shares

'VCT'           a venture capital trust for the purposes of Income Tax Act 2007,
                Part VI

'Warrant'       warrants to be issued to JEP to subscribe for 1,776,029 New A
                Ordinary Shares at 3p per share


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