Mti Wireless Regulatory News (MWE)

14 May 2015

MTI Wireless Edge Ltd

("MTI" or the "Company")

Financial results for the three months ended 31 March 2015

MTI Wireless Edge Ltd., (MWE) ("MTI" or the "Company"), a market leader in the manufacture of flat panel antennas for fixed wireless broadband, today announces its unaudited results for the three months ended 31 March 2015.

Highlights

· Continued increase in revenue and operational profit.

· Revenue increased by 1% to US$3.54m (Q1 2014: US$3.51m).

· Operational profit increased by 62% to US$141k (Q1 2014: US$87k).

· Dividend of US 0.68 cent per share paid on 2 April 2015.

· Shareholder's equity of US$17.9m (at December 31 2014: US$17.9m), equivalent to 22.4 pence per share.

· Acquisition of Mottech is progressing and closing is expected before end of May 2015.

Dov Feiner, Chief Executive Officer, commented:

"I am pleased to announce that during this quarter the Company continued to increase its revenue and profits. We are especially pleased with the growth in our RFID line of products, which is driven by fleet management and toll roads solutions. We also continue to see interest and demand for our 80GHz line of products. However, we note some of our customers are suffering delays in implementing their solution into the market, but we remain confident in the long-term market opportunity for these multi-gigabit wireless internet backhaul solutions.

"As announced on the 28 April 2015, the Company has entered into a conditional agreement to acquire Mottech, a provider of wireless control products and services. We expect to complete the acquisition within the next 30 days and the management team is planning the integration process. An announcement will be made when the acquisition completes."

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About MTI Wireless Edge

MTI is engaged in the development, production and marketing of High Quality, Low Cost, Flat Panel Antennas for Commercial & for Military applications. Commercial applications such as: WiMAX, Wireless Networking, RFID readers & Broadband Wireless Access. With over 40 years' experience, supplying antennas 100KHz to 90GHz including directional antennas and Omni directional for outdoor and indoor deployments including Smart Antennas for WiMAX, Wi-Fi, Public Safety, RFID and for Base Stations and Terminals - Utility Market. Military applications includes a wide range of broadband, tactical and specialized communications antennas, antenna systems and DF arrays installed on numerous airborne, ground and naval, including submarine, platforms worldwide.

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATEDSTATEMENT OF

CHANGES IN EQUITY

For the three months period ended March 31 2015:

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATEDSTATEMENT OF

CHANGES IN EQUITY

For the three months period ended March 31 2014:

The ac companying notes form an integral part of the financial statements.

INTERIM CONSOLIDATEDSTATEMENT OF

CHANGES IN EQUITY

For the year ended December 31, 2014:

The ac companying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

The accompanying notes form an integral part of the financial statements.

 INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

Appendix A - Non-cash transactions:

The accompanying notes form an integral part of the financial statements.

Note 1 - General:

A. Corporate information:

M.T.I Wireless Edge Ltd. (hereafter - the "Company") is an Israeli corporation. It was incorporated under the Companies Act in Israel on December 31 1998 as a wholly-owned subsidiary of M.T.I Computers and Software Services (1982) Ltd. (hereafter - the "Parent Company") and commenced operations on July 1 2000. Since March 2006, the Company's shares have been traded on London's AIM Market.

The formal address of the Company is 11 Hamelacha Street, Afek Industrial Park, Rosh-Ha'Ayin, Israel.

The Company is engaged in the development, design, manufacture and marketing of antennas and accessories.

B. Foreign currencies:

Henceforth are the details of the main foreign currency information and the changes in the exchange rate percentage in the reporting period:

Note 2 - Significant Accounting Policies:

The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in International Accounting Standard No. 34 ("Interim Financial Reporting").

The interim consolidated financial information set out above does not constitute full year end accounts within the meaning of Israeli Companies Law. It has been prepared on the going concern basis in accordance with the recognition and measurement criteria of the International Financial Reporting Standards ("IFRS"). Statutory financial information for the financial year ended December 31 2014 was approved by the board on February 19 2015. The report of the auditors on those financial statements was unqualified. The interim consolidated financial statements as of March 31 2015 have not been audited.

The interim consolidated financial information should be read in conjunction with the annual financial statements as of 31 December 2014 and for the year ended on that date and with the notes thereto. The significant accounting policies applied in the annual financial statements of the Company as of December 31 2014 are applied consistently in these interim consolidated financial statements.

Note 3 - operating SEGMENTS:

The following table's present revenue and profit information regarding the Company's operating segments for the Three months ended March 31, 2015 and 2014, respectively, and for the year ended December 31 2014.

Note 3- operating SEGMENTS (CONT.):

Note 4 -TRANSACTIONS WITH RELATED PARTIES:

The Parent Company and other related parties provide certain services to the Group as follows:

Compensation of key management personnel of the Group:

*) Including Management fees for the CEO, Director executive management and other related parties.

All Transactions are made at market value.

Note 5 - SIGNIFICANT EVENTS:

a. On April 4 2015, the Company paid a dividend of 0.68 cents per share totalling approximately US$351,000.

b. On April 28 2015 the Company announced that it has entered into a conditional share purchase agreement to acquire 100% of Mottech, a provider of wireless control products and services, for a consideration of up to 18.55 million New Israeli Shekels ("NIS") (approximately US$4.75 million) from which 15.5 million NIS (US$4 million) will be paid upon closing and the remainder by April 2018 based on the financial performance of Mottech in 2016 and 2017 (the "Acquisition").

Mottech is a global distributor and integrator of Motorola's wireless control solutions, which includes a portfolio of radio-enabled sensors and switches managed by control software. Mottech primarily operates in the water-management sector and has developed proprietary wireless management solutions for commercial irrigation, municipal water authorities and water distributors. A typical solution reduces costs for the client, for example Mottech provides a commercial farm irrigation system that monitors the local environment, weather and soil sensors in real-time and Mottech's propriety software automatically operates irrigation and fertilizer pump stations to optimize these critical costs for the farm.

Mottech was set up in May 2014 and acquired its business and assets at the same time from the Israeli court. The assets had been placed in the Israeli court following the previous owner going into administration as result of business failure at a subsidiary which is not part of Mottech or its business today.

During the period from May to December 2014 Mottech's audited accounts show revenue of 26.5 million NIS (US$6.6 million) from distributing Motorola's wireless control products, system integration and management and maintenance services. Mottech is headquartered in Israel, and has 60 employees worldwide, including subsidiaries in South Africa, Australia and the US. Subject to satisfaction of the relevant conditions, the Acquisition is scheduled to complete in May 2015.

The Acquisition is conditional, inter alia on:

• The approval of Israeli antitrust controller;

• The receipt of Motorola approval for the Acquisition;

• The warranties given by Mottech and its owners to the Company in respect of the Mottech business remaining true and accurate as at completion of the Acquisition;

• There being no material adverse change in the financial and trading position or prospects of the Mottech business before completion of the Acquisition; and

• The approval of Mottech's banks.

The Acquisition is to be funded out of MTI's existing cash resources and new bank facilities to be put in place.