Appointment of Chief Executive Officer

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

Ultra Electronics Holdings plc

("Ultra" or "the Group") 

APPOINTMENT OF CHIEF EXECUTIVE OFFICER

Ultra is pleased to announce the appointment of Simon Pryce as its Chief Executive Officer. He will join the Group and its Board on 18 June 2018.

Simon was Group Chief Executive Officer of BBA Aviation plc ("BBA") from 2007 to 2017. Despite challenging market conditions, Simon led BBA's transformation from an aggregation of loosely-related aviation and defence businesses to the world's leading business and general aviation service provider, through effective strategic and portfolio management and a focus on operational performance, financial discipline and cash generation.

Simon is a non-executive director of Electrocomponents plc, a Fellow of the Royal Aeronautical Society and a member of the Council of the University of Reading. Prior to joining BBA Aviation, he held a number of international finance and management roles at GKN plc, and previously worked at JP Morgan and Lazards in London and New York. He is a chartered accountant and a member of the Chartered Institute for Securities and Investment.

Douglas Caster, who assumed the role of Executive Chairman in November 2017 at the request of the Board, will revert to being non-executive Chairman on 18 June 2018.

Douglas Caster, Executive Chairman, commented:

"I am delighted to welcome Simon to Ultra. His broad experience, especially his international, plc and financial background make him an excellent choice as Ultra's next Chief Executive Officer. Simon has a proven track record as a strong businessman and the Board is confident that he has the qualities to lead Ultra for the next stage of the Group's development."

Simon Pryce commented:

"I am excited to be joining Ultra. With overall global defence spending set to recover, the Group is well-positioned in areas of priority spend. I look forward to working with the Ultra team to ensure its niche technology businesses more than meet customer needs and exceed their expectations through innovative development, co-operation where it makes sense, continued business simplification, cost optimisation and strong operational performance. Importantly, this is in the context of a rigorous focus on creating long-term and sustainable value for all Ultra's stakeholders."

This announcement is made in accordance with paragraph 9.6.11 of the Listing Rules. There are no details on Simon to be disclosed under paragraph 9.6.13 (2) to (6) of the Listing Rules.

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Enquiries:

Douglas Caster, Executive Chairman 020 8813 4307

Susan McErlain, Corporate Affairs Director 07836 522 722

James White, MHP Communications 020 3128 8756

www.ultra-electronics.com 020 8813 4321

Remuneration

Simon Pryce

Simon's remuneration package includes an annual basic salary of £665,000, which reflects his calibre and experience, and a cash allowance in lieu of pension contribution of 18% of basic salary. The maximum annual bonus potential is 125% of salary, pro-rated to service for 2018. 20% of his annual bonus will be deferred into Ultra Electronics shares for a period of three years.

Simon will be eligible to participate in the Company's Long-Term Incentive Plan and the intention is to make an award as soon as practicable following his employment commencing with a value equivalent to 175% of his basic salary. The award would be subject to the same performance conditions that will apply to the award made to the Group Finance Director in 2018 as set out in the Company's 2017 Annual Report. In subsequent years, it is expected that any award would be limited to the normal annual limit included in the Company's Remuneration Policy, currently 150% of salary.

These arrangements, along with other elements of Simon's remuneration are in line with the Company's Remuneration Policy approved by shareholders at the 2017 AGM. Full disclosure of these remuneration arrangements will be provided in our 2018 Directors' Remuneration Report.

Douglas Caster

When Douglas reverts to being non-executive Chairman, his remuneration package will revert to his previous arrangements.