TCM.L Regulatory News (TCM)

Telit Communications Plc

("Telit" or the "Company")

Acquisition

Update on the Acquisition of NXP's Automotive Telematics Onboard unit Platform ("ATOP")

March 24, 2014 - As previously announced by the Company, Telit Wireless Solutions Srl, a fully owned subsidiary of Telit Communications Plc, entered on December 22, 2013 into an agreement, subject to closing, with NXP B.V., a fully owned subsidiary of NXP Semiconductors N.V. (Nasdaq: NXPI) to purchase NXP's ATOP business.

The Board is pleased to announce that closing conditions for completion of the acquisition have been fulfilled and closing is expected to occur on March 31, 2014. The final consideration is expected to be approximately $9.4m, plus an additional $1.8m for inventory, to be settled as to $2.3 million in cash, with the balance being paid by way of allotment to NXP of Telit shares (the "Consideration Shares"), subject to certain adjustments that will be made after closing and settled in cash. The amount of Consideration Shares to be allotted shall be determined by reference to the weighted average price of Telit shares in the 5 business days prior to closing, such that, the higher the price of Telit shares, the lower the number of Consideration Shares that will be issued.

At closing, following the completion of the appropriate regulatory due diligence, the Company's board shall appoint Lars Reger, an executive of NXP's automotive business unit, as a non-executive director. A separate announcement in accordance with the AIM Rules for Companies to this effect will be made, on closing.

ATOP is an automotive grade solution for vehicle manufacturers enabling them, amongst other features, to implement telematics services like eCall, the European initiative to bring rapid assistance to motorists involved in a collision anywhere in the EU, on a single compact and cost efficient package, whilst reducing complexity and minimizing costs of vehicle design.

Oozi Cats, Chief Executive of Telit, said "On the back of the ATOP acquisition, Telit incorporated Telit Automotive Solutions N.V., a fully owned subsidiary, which will accommodate Telit's automotive activities into one business unit that will consolidate all the expertise in automotive products and platforms, which are becoming increasingly dependent on advanced software engineering. The Automotive business unit will deliver a high level of competence in system security, necessary for protecting not only the vehicle but also the increasingly important elements of driver privacy under such applications".

For further information please contact:

Notes to readers

Telit is a global leader in the development and manufacture of wireless machine-to-machine ("m2m") communication modules,marketing the industry's most extensive portfolio of the highest quality cellular, short-range and global navigation satellite system (GNSS) devices. The company has consistently ranked in the top three for the module vendor space and ranks number one in the space known as industrial M2M with an estimated market share of 31% in 2013. Telit products and services are available in over 80 countries from 32 sales offices, 60 exclusive distributors, and a sales force of 350+ sales people servicing over 5,000 customers. With over 12 years exclusively dedicated to the m2m market, Telit constantly advances its technological leadership from seven R&D centers around the globe.

In order to leverage cellular m2m functionality in electronic devices, integrators require a range of services from two distinct domains to connect them end-to-end, over the air and over the internet all the way to the back-end servers and enterprise systems they integrate. Telit's m2mAIR Business Unit offers all such services enabling customers to fully integrate their devices to the business systems that power them. The mobile network domain encompasses such elements as mobile network connectivity, module management, account optimization, cost control. From the perspective of the connected asset, the last mile of the connection happens over the Internet (IP) domain, which devices use to reach the Cloud and application enablement platforms (Paas), allowing them to interact with the business systems they belong to. For more information on m2mAIR please click here.

Telit is listed on AIM (Ticker: TCM). Itprovides customer support and premier design-in expertise from its sales and support offices, global distributor network of wireless experts and 30 accredited Competence Centers. Telit is entrenched not only as a supplier but also as an active member in standards definition bodies for a number of segments and application areas including automated meter reading, automotive, fleet management, healthcare, security systems, telematics, POS, and others. . More information on Telit can be found on its website: www.telit.com.