Trading Update

27 Apr 2006 07:00

SOFTWARE RADIO TECHNOLOGY PLC ("SRT" or the "Company") TRADING UPDATE Software Radio Technology, the AIM-quoted developer and licensor of digitalwireless technology reference designs, which facilitate and fast-track themanufacture of sophisticated digital communications and tracking/surveillanceproducts within the professional homeland security market, is pleased toprovide a trading update following its financial year end, the first since theCompany's admission to AIM in November 2005.The preliminary results announcement for the year ended 31 March 2006 will bemade in the week commencing 12 June 2006. The Directors anticipate that thetrading results, before an exceptional item described below, will be slightlyahead of market expectations published prior to the Company's admission to AIM.Highlights:TETRA (Professional mobile radio) * SRT currently has TETRA handset development contracts with five customers, of which three are in China and one each in South Korea and Taiwan. All of the customers are planning volume production of handsets, thereby generating royalties for SRT, during the Company's current financial year ending 31 March 2007. * A key recent development was the award of a contract for the supply of TETRA handsets by a major agency of the Chinese Government to Tianjin Communication & Broadcasting Group ("TCB"), one of SRT's customers. * TCB has already placed an order with SRT for a small quantity of ASIC chips to enable a pre-production run of TETRA handsets. The Directors anticipate that TCB will commence volume production within the next six months. * Shenzhen HYT Science & Technology Co. Ltd, another TETRA customer, has also placed an order of ASIC chips for pre-production manufacturing. * The Company's contract with Hisense Co. Ltd has not progressed as quickly as anticipated. SRT has agreed to devote further resources to support the customer, thereby minimising the delay and ensuring the customer enters full production by the end of the year. AIS (Automatic Identification Systems) * The Company formally launched its low cost AIS Class B transponder design at the London Boat Show in January 2006. * In January SRT signed its first AIS Class B contract and is in active negotiations with companies worldwide. * The response to the launch from potential customers around the world has been extremely encouraging. This has clearly demonstrated the demand, fuelled primarily by concerns over homeland security, for an AIS system which is priced at a level appropriate for the smaller commercial and leisure vessel markets. * The Directors believe that AIS Class B represents a fast developing, potentially mass market, in which SRT holds a major competitive advantage with its low cost product available for sale or licensing. Exceptional itemAn exceptional, non-cash accounting charge to the profit and loss account inthe year ended 31 March 2006 of approximately ‚£600,000 is expected to arise asa result of the implementation of UITF 17 in respect of the grant of shareoptions at the time of admission to AIM. -ends- Software Radio Technology plc 01761 409500 Shamus Kelly shamus.kelly@softwarerad.com Westhouse Securities LLP 0161 838 9140 Tim Feather tim.feather@westhousesecurities.com Tavistock Communications 020 7920 3166 Christian Taylor-Wilkinson ctaylor-wilkinson@tavistock.co.ukNotes for EditorsAbout Software Radio TechnologySRT is a developer and licensor of digital wireless technology referencedesigns which facilitate and fast-track the manufacture of sophisticateddigital communications and tracking/surveillance products for use within theprofessional homeland security market.SRT currently licenses technology solutions for TETRA handsets (communicationdevices used by professional users such as police & military) and automaticidentification systems (AIS) for ships and boats.ENDSOFTWARE RADIO TECHNOLOGY PLC