UK Oil & Gas Regulatory News (UKOG)

18 February 2011

Sarantel Group PLC

Trading update

Sarantel Group PLC (AIM: SLG, 'Sarantel' or 'the Group'), the leading manufacturer of revolutionary filtering antennas for mobile and wireless devices, announces a trading update for the period ended 18 February 2011.

Following the Group's successful fundraising in December 2010, initial sales this financial year have so far been slower than expected. However, based on a substantial improvement in customer orders, the Board remains confident that performance over the remainder of the financial year will improve.

The slower sales have largely been due to unexpected internal technical development issues experienced by two major customers. The Group is confident that once these customers have resolved their internal issues, their orders will return in the second half of the financial year.

One of the customers has placed a milestone production order this month and shipments to the other are expected to resume in April.

Overall, owing to strong demand from a growing customer base the Group expects monthly sales for the remainder of the financial year to be broadly in line with budgeted levels, even without orders from these two customers.

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About Sarantel - www.sarantel.com

Sarantel is a leader in the design of high-performance miniature antennas for portable wireless applications. 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 wireless products for the GPS, WiMax, Satellite Radio and Satellite phone markets.