Cobham Regulatory News (COB)

9 July 2012

Divestment of Emergency Locator Beacon Businesses for US$73m

Cobham plc ('Cobham' or 'the Group') is pleased to announce that it has completed the planned divestment of its non-core emergency locator beacon business in the US to J.F. Lehman & Company for a cash consideration of US$73m on a debt and cash free basis. An additional consideration of up to US$5m may become payable, contingent on future events. In addition, it has divested its small European operation to management for a nominal sum. There is a modest overall profit on these divestments.

The businesses design and manufacture beacons and emergency location transmitters, with activities in Fort Lauderdale, Florida, USA and Austria respectively. There is exposure to outdoor recreational markets through retail outlets, which are non-core to Cobham, as well as customers in mature military markets. It is expected that the transactions will be approximately 2% dilutive year-on-year to both 2012 and 2013 earnings.

This is the most significant remaining step, following the completion of the sale of the Analytic Solutions business in November 2011, towards achieving the divestment of the Group's non-core activities. Cobham's remaining non-core businesses comprise small, sub-scale businesses and product lines, which together generated annual revenue of approximately £20m in 2011. These will be divested individually over time as transactions are agreed.

Warren Tucker, Chief Financial Officer said:

"These transactions substantially complete the planned divestments of Cobham's non-core businesses, leaving us with a portfolio of focused businesses, each of which has differentiated technology and a leading position in attractive markets."

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