Removal of Restrictions From Common Stock

16 October 2012

Spectra Systems Corporation ("The Company" or "Spectra")

Removal of Regulation S restrictions from shares of common stock

Further to the announcement on 11 July 2012 concerning the establishment of its depositary interest facility, Spectra, a leader in machine-readable high speed banknote authentication, announces that restrictive legends have been removed from a further 130,192 shares of common stock of the Company.

As a result, these share have transferred from the Regulation S stock line ISIN number USU8457D1091 (AIM:SPSC) into the unrestricted line ISIN number US84756T1060 (AIM:SPSY).

The Company's issued share capital now comprises:

8,493,838 shares in the Regulation S stock line ISIN number USU8457D1091 (AIM:SPSC); and

36,757,532 shares in the unrestricted line ISIN number US84756T1060 (AIM:SPSY).

Enquiries:

Spectra Systems Corporation

Dr. Nabil 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

James Bavister

Media Enquires:

The Communications Portfolio Limited

Ariane Comstive / Caolan Mahon Tel: +44 (0) 20 7536 2028 / 2029

ariane.comstive@communications-portfolio.co.uk