Director Shareholding

For immediate release 1 November 2012

Spectra Systems Corporation

("The Company" or "Spectra")

Spectra Systems Director Shareholding

Spectra Systems (AIM: SPSY.L) has received notification that on 31 October 2012, Nabil M. Lawandy, CEO and a director of the Company, acquired 25,000 shares in the common class of stock (SPSY) of the Company ("Shares") at a price of 40 pence per share.

Following the acquisition, Dr. Lawandy will have an interest in the Company of 1,883,570 shares, representing 4.16 % of the Company's issued share capital.

Enquiries:

Spectra Systems Corporation

Dr. Nabil M. Lawandy, Chief Executive Officer Tel: +1 (0) 401 274 4700

WH Ireland Limited

Chris Fielding (Head of Corporate Finance) Tel: +44 (0) 20 7220 1650

Media Enquires:

The Communications Portfolio Limited

Philip Ranger / Caolan Mahon Tel: +44 (0) 20 7536 2028 / 2029

philip.ranger@communications-portfolio.co.uk