Contract Extension

20 January 2016

Starcom Plc

("Starcom" or the "Company")

Long Term Extension Contract with Existing Client

Starcom (AIM: STAR), which specialises in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets and people, is pleased to announce that it has been awarded a long term extension of the contract with a major international organisation which was originally announced on 8 September 2015.

The first contract with the client followed a competitive tender and involved the supply of 100 units of the new Helios Hybrid unit. As a result of the client's satisfaction with the product, the Company has been awarded a contract for the supply and installation of a hybrid GPS satellite-GSM based vehicle fleet tracking system. The system will be a hybrid (a combination of GSM and GPS satellite-based communications systems) land mobile vehicle fleet tracking system that would comprise a central management console (or consoles) and is able to track up to a minimum of approximately 250 client units.

The agreement has a three year term commencing on 31 January 2016. In addition, and as usual, there will be recurring monthly fees for the web services offered to support each unit.

Avi Hartmann, CEO of Starcom, commented, "Yet again we have proved that on an international level, our Helios Hybrid, with its 'always connected' satellite tracking technology, is preferred over our competition's products. Our client runs a large fleet of vehicles and we hope that orders will follow within the three year period of the contract."

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