Trading Statement

Sarantel Group PLC 12 November 2007 12 November 2007 SARANTEL GROUP PLC Year end trading update Sarantel Group PLC (AIM: SLG), the leading manufacturer of revolutionary filtering antennas for mobile and wireless devices, is publishing a year end trading update for the 12 months to 30 September 2007. Sales for the year remained depressed as highlighted in the Group's interim results and are expected to be in the order of £2m for the year. This is principally due to the slower than expected development in the handheld GPS market affecting take up of the Group's 2nd generation GPS antenna and lower than expected volumes of portable satellite radio units sold. However, the Group has continued to reduce its cost base and has cut its cash outflow by 19% in the second half compared to the first half of the financial year. At 30 September 2007, the Group had cash balances of £2.4m, of which £0.7m is held to secure leasing liabilities. The Board remains confident about the Group's medium term prospects particularly as it believes that the mass market adoption of hand portable GPS navigation devices is now beginning to develop. Specifically in its core GPS navigation business Sarantel has made good progress including: Hand Portable GPS • Sarantel has received break-through production orders for a hand portable outdoor GPS navigation device, to be launched in early 2008, from a top tier GPS device supplier. This design win is significant as it is a break-in to a highly reputable mainstream GPS supplier and confirms that Sarantel's technology plays a key role in GPS devices operating in demanding electronic environments. • Sarantel has recently received production orders for a new generation of Golf range finder products from SKYGOLF. • Sarantel's new generation GPS P3 antenna, a small antenna measuring 7.5 x 12mm, has been selected as an optional GPS antenna in a UMPC reference design by Intel. Automotive GPS • Sarantel has received production orders from a Fiat supplier for an innovative personal navigation device for the newly launched Fiat 500. At the Interim results, the Board stated that it planned to diversify the Group's product portfolio to ensure Sarantel generated short-term revenues whilst the high-volume hand portable GPS business developed toward mass adoption. Sarantel has begun to see successful early results with this strategy, including: Mobile Satellite Services (MSS) • Sarantel has signed an agreement with Terrestar Networks, an emerging mobile network operator. Terrestar plans to build, own and operate North America's first 4G integrated mobile satellite and terrestrial communications network and the agreement is for a fully-funded feasibility study into the use of Sarantel's antenna solution for their future mobile handsets. Military GPS • Sarantel is in discussions with a number of suppliers to the US military sector, for the use of its GPS antennas. This new and exciting market enables the Group to highly leverage the capabilities of its antenna technology. The Board is confident that these recent developments demonstrate that the Group's antenna technology provides the best solution for high-performance applications. It remains convinced that Sarantel will play an important role in the high volume hand portable GPS navigation market as it reaches critical mass. Sarantel expects to publish its preliminary results for the year to 30 September 2007 in early 2008. For further information please contact: Sarantel Group PLC 01933 670560 Geoff Shingles, Chairman www.sarantel.com David Wither, Chief Executive Sitkow Yeung, Finance Director Ambrian Partners 0207 776 6400 Tim Goodman College Hill 0207 457 2020 Adrian Duffield / Ben Way Notes to Editors: Sarantel is a leader in the design of high-performance miniature antennas for portable wireless applications including hand-held navigation, satellite radio and laptop computers. Sarantel's revolutionary ceramic filtering antennas offer dramatically improved performance over existing antenna designs, resulting in a clearer signal, better range and a 90 per 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 high-volume consumer products incorporating technologies such as GPS, Satellite Radio, WiMax and Mobile Satellite Services. This information is provided by RNS The company news service from the London Stock Exchange KLFBDFBLFBB
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