Award of $ 44 million Facility

 Press release 26 June, 2013

Telit Communications PLC

('Telit' or 'the Company')

Award of $ 44 million Facility

Telit Communications PLC (AIM: TCM), a leading global wireless communications developer and manufacturer, is pleased to announce that its wholly owned Italian subsidiary, Telit Communications SpA, has been granted by decree a US$44 million facility supported by the Italian MISE (Ministry of Economic Development) to develop an innovative platform for the application of M2M technologies (the "Project"). Of the US$44 million, 10% is to be provided as a grant by the Italian government, 81% is to be made available as a loan by Cassa Depositi e Prestiti, a joint stock company under public control in Italy, with a preferred interest rate of 0.5% per annum, and 9% is a loan issued directly by a financial institution, on terms to be concluded by the parties.

The net present value (i.e., economical value) generated by the grant and the preferred interest rate for Telit's future results is expected to be around $11 million over the loan's duration.

The Project was launched by the Company in October 2011, and up to 31 December 2012, expenses of about US$16 million had been accrued in connection with the Project. We expect that this amount will be reimbursed to the Company in the near future.

The funds will allow Telit to increase its already significant investments in research and development of new technologies and products and, in particular, in the development of a new and innovative family of wireless products capable of processing signals from both the GPS and Galileo positioning systems and to leverage this technology to design a new wireless "automotive grade" product family taking advantage of the new services offered by the Galileo constellation and the latest 3G HSPA+ and 4G-LTE cellular technologies.

The Project includes 11 research targets (Work Packages) which will make use of Telit's resources at laboratories in Trieste and Cagliari. The Project is expected to involve more than 100 Telit employees (including employees recruited by the Company for the Project) over a period of three years.

The Project will further strengthen Telit's M2M platforms and competitive advantages by integrating location systems operating on the Galileo standard on both existing platforms and on those still in development.

Commenting on the award of the facility, Oozi Cats, CEO said: "This award enlarges our financial resources for further innovations and R&D efforts which we anticipate will lead Telit to additional growth and market leadership, as well as supporting the financial strength of the Company. We would also like to take this opportunity to thank the Italian Ministry of Economic Development for the confidence it has shown in Telit by approving this award".

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Notes to editors

Telit is a global leader of machine-to-machine (M2M) communications providing wireless module technology via its brand Telit Wireless Solutions, enhanced by managed and value added services, including connectivity via its business unit m2mAIR. Telit has been dedicated to M2M communications for over 12 years and is constantly advancing technological leadership from 6 R&D centers around the globe. Telit offers an extensive portfolio of quality cellular, short-range, and GNSS modules. By supplying business scalable products interchangeable across families, technologies, and generations, Telit is able to keep development costs low and uniquely protect customers' design investments.