Adoption of FRS 101 - Reduced Disclosure Framework

Ultra Electronics Holdings plc

20 January 2016

Notification to Shareholders in accordance with FRS 101 - Reduced Disclosure Framework

On 19 January 2016, Ultra Electronics Holdings plc posted a letter to shareholders, the full text of which is set out below.

Notification to shareholders on parent company financial statements: Adoption of Financial Reporting Standard ("FRS") 101 - Reduced Disclosure Framework

The financial statements for the year ended 31 December 2014 of Ultra Electronics Holdings plc (the "Company"), the parent company of the Ultra Electronics Holdings group of companies (the "Group"), as set out on pages 126 to 130 of the 2014 Annual Report, were prepared in accordance with UK Generally Accepted Accounting Practice ("UK GAAP").

FRS 101 is a new UK GAAP accounting framework introduced by the Financial Reporting Council (the "FRC") which becomes mandatory for the financial statements of UK companies in 2015. Under this new framework, the Company is required to prepare its parent company financial statements for its financial year commencing 1 January 2015 on one of the new bases permitted by the FRC.

The Company therefore proposes to adopt FRS 101 "Reduced Disclosure Framework" and to take advantage of the permitted election to the disclosure exemptions allowed under FRS 101. As a result of taking the possible disclosure exemptions permitted under FRS 101, disclosures are expected to be the same as, or follow closely, those reported under current UK GAAP.

The Company's decision to adopt FRS 101 does not require shareholder approval. However, due to the election to take the possible disclosure exemptions permitted under FRS 101, the Company is required to notify all shareholders of this election and any shareholder or shareholders holding in aggregate 5% or more of the total allotted shares in the Company may object. Objections must be served in writing and delivered to the Company Secretary at the Company's registered office (417 Bridport Road, Greenford, Middlesex UB6 8UA) not later than 2 February 2016.

This notification will apply on a continuing basis until such time as the Company notifies its shareholders of any change to its chosen accounting framework for the parent company financial statements.

The consolidated financial statements of the Group will continue to be prepared in accordance with EU-adopted International Financial Reporting Standards and are unaffected by this new accounting framework.

In accordance with Listing Rule 9.6.1, a copy of the notification sent to shareholders has been submitted to the National Storage Mechanism and will shortly be available at www.hemscott.com/nsm.do.

This announcement is made pursuant to Listing Rule 9.6.3.

General enquiries:

Sharon Harris, General Counsel and Company Secretary  +44 (0)20 8813 4303