TCM.L Regulatory News (TCM)

Telit Communications PLC("Telit" or the "Company")

Automotive Contract Wins 

Telit secures $220 million supply contracts with tier-one automotive OEMs

London, November 2, 2015 - Telit Communications PLC (AIM:TCM), a global enabler of the Internet of Things (IoT), is pleased to announce that it has recently secured supply agreements for its cellular modules with two tier-one automotive suppliers, with expected revenues of up to $33 million. These agreements are the 5th and 6th such supply agreements Telit has secured over the past 12 months representing in aggregate up to $220 million of revenues over the life of the agreements. Supply periods range from four to six years with shipments on one contract already begun and peak volumes being reached in 2018, with deliveries into the U.S., Germany, Japan, China and Korea. Telit looks forward to updating the market with further contract wins from its automotive business unit over the coming 12 months as the company capitalises on its strong momentum in this segment.

The selected ATOP 3.5G and UE910 modules will provide eCall and ERA-GLONASS functionality for Korean car models selling into Europe and Russia; American and Chinese car models selling into China; and for cars and motorcycles from German automotive brands selling all over the world. The Company will also supply the LE920 and HE920 to tier-one suppliers in the U.S. and Japan to be integrated into connected infotainment and gateway platforms for a number of Japanese and American car brands.

eCall, which will be mandatory in all vehicles in Europe starting April 2018, is an emergency call service developed by the European government in collaboration with the Russian ERA-GLONASS to expedite emergency response to traffic and road accidents across the combined regions to save lives. It is enabled in the car by automatic collision and accident detection, augmented by cellular connection and GNSS location technologies. In case of an accident, the system in the car automatically alerts services from nearby emergency centers sending location and sensor data that can be used by emergency responders. Services also include a panic button for drivers to use in case of danger from automotive related crimes.

With the automotive industry focused on bringing only the most secure and attack resilient solutions to connect the car, the rugged ATOP 3.5G service enabled platform delivers with a secure element as root of trust for a Java enabled service execution environment, providing embedded, hardware-based security for trust management and data integrity. The ATOP architecture enables end-to-end secure communication and secure service execution.

The LE920 and HE920 are LTE and HSPA+ members of Telit's xE920 automotive-grade module family featuring some of the industry's top environmental performance in vibration and shock resistance and heat dissipation. The LTE product delivers 100/50Mbps data rates and is fully fallback compatible with DC-HSPA+ delivering up to 42/5.76Mbps rates where available. The HE920 delivers 14.4/5.76Mbps data rates and both models feature quad-band GSM/GPRS and EDGE fallback capability.

The rugged, automotive version of the UE910 was designed specifically for applications requiring eCall functionality. It includes a 3GPP TS26.267 compliant in-band modem conforming the eCall EU directive and leveraging the company's extensive experience in audio processing and tuning.

 "The selection of essentially all of our top-generation, automotive-grade modules for world-class projects like these is a great validation of the strategy we have been implementing for the automotive OEM segment. eCall and ERA-GLONASS qualification processes are very complex due to the mission-critical element of the life-saving connection involved and it is rewarding to become the supplier for such a large number of these automotive OEMs," said Oozi Cats, Telit's CEO. "This is also a validation of the quality and performance already achieved by our expanding automotive business unit which has been receiving heavy investment in recent years."

Telit automotive-grade modules are developed and manufactured under ISO TS16949 quality specifications meeting or exceeding supply chain requirements from the automotive industry.

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About Telit

Telit, is the global leader in Internet of Things (IoT) enablement. The company offers the industry's broadest portfolio of integrated products and services for end-to-end IoT deployments - including cellular communication modules in all technologies, GNSS, short-to-long range wireless modules, IoT connectivity plans and IoT platform services. Through the IoT Portal, Telit makes IoT onboarding easy, reduces risk, time to market, complexity and costs for asset tracking, remote monitoring and control, telematics, industrial automation and others, across many industries and vertical markets worldwide.

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