Contract Win

Embargoed until 0700 15 May 2014

Ultra Electronics Holdings plc

("Ultra" or "the Group")

Ultra receives over US$21m in US Navy contracts and NAVSEA Team Award

Ultra Electronics announces that its 3 Phoenix business (3Pi) has been awarded three contracts totalling over US$21m from the US Navy.

The scope of these contracts includes work packages for torpedo warning systems ("TWS"), submarine towed anti-submarine warfare arrays and radar command and control software.

· The TWS contract is for the procurement of engineering services for the development, integration, testing and logistic support of a torpedo warning system. TWS provides surface ships with the ability to detect threat torpedoes and thereby employ defensive measures including manoeuvre and hard and soft kill countermeasures.

· The second contract is for the procurement of two TB-29A Inverted Passive Electrical Network ("iPEN") towed array units, along with associated spares and test equipment. iPEN telemetry acts as a data fusion point for the integration of towed array handling system sensor data. This technology is expected to provide significant improvement in reliability and operational availability of TB-29A towed arrays, which are used by submarines for target detection.

· The final contract is for the procurement of the Block IV Virginia class submarine radar command and control software. This updated radar software will reduce operator workload by providing ship safety navigation functionality and rapid situational awareness and evaluation.

Additionally, the US Navy's NAVSEA Command has recognised Ultra 3Pi by awarding the Team Excellence Award for its role as prime contractor for the TWS and as a key member of the joint government/industry Surface Ship Torpedo Defense (SSTD) Team. The SSTD Team overcame financial and programmatic barriers to meet the Chief of Naval Operation's requirement to deliver a rapid prototype torpedo defence capability on to a deploying aircraft carrier in less than 2 years.

Rakesh Sharma, Chief Executive of Ultra, commented:

"I am pleased we have secured these important contracts. It is a reflection of the importance of the "pivot to the Pacific" spoken about by the US Navy. Furthermore I am delighted that the hard work and dedication of the whole team has been recognised by the receipt of the prestigious team excellence award from NAVSEA."

- Ends -

 Enquiries:

Rakesh Sharma, Chief Executive 020 8813 4307

Mary Waldner, Group Finance Director

Susan Ellis, Corporate Affairs Adviser 07836 522 722

James White, MHP Communications 020 3128 8756

www.ultra-electronics.com 

Further information about Ultra:

Ultra Electronics is an internationally successful defence, security, transport and energy company with a long, consistent track record of development and growth. Ultra businesses constantly innovate to create solutions to customer requirements that are different from and better than those of the Group's competitors. The Group has a broad range of distinct market or technology niches within its thirty businesses. The diversity of niches enables Ultra to contribute to a large number of platforms and programmes and provides resilience to the Group's financial performance.

Ultra has world-leading positions in many of its niches and, as an independent, non-threatening partner, is able to support all of the main prime contractors with specialist capabilities and solutions. As a result of such positioning, Ultra's systems, equipment or services are often mission-critical to the successful operation of the platform to which they contribute. In turn, this mission-criticality secures Ultra's positions for the long term which underpin the superior financial performance of the Group.

Ultra offers support to its customers through the design, delivery and support phases of a programme. Ultra businesses have a high degree of operational autonomy where the local management teams are empowered to devise and implement competitive strategies that reflect their expertise in their specific niches. The Group has a small head office and executive team that provide to the individual businesses the same agile, responsive support that they provide to customers as well as formulating Ultra's overarching, corporate strategy.

Across the Group's three divisions, the major market sectors in which Ultra operates are:

Defence: Ultra supplies advanced electronic and electrical systems and equipment to coalition defence forces around the world. The Group innovates to provide specialist capabilities that are superior to those available to the enemy. By focusing on delivering comparative military advantage, Ultra can gain market share and exploit the headroom for growth that is available in defence budgets worldwide.

Security and cyber: Ultra provides highly differentiated systems and capabilities to the broad security, intelligence and cyber market. Driven by the actions of rogue states, terrorist groups and organised crime, governments worldwide are focusing expenditure preferentially on addressing these threats. Ultra has highly specialised capabilities in secure communications, networks and high grade cryptographic equipment, key management systems and surveillance and intelligence gathering systems.

Transport: Ultra provides specialist software, systems and equipment for use in mass passenger transport systems. This includes high integrity real-time controls for civil aircraft, advanced IT solutions for modern airports and trackside power equipment for transit rail systems. Demand in all areas is driven by rising populations in affluent and developing regions of the world.

Energy: Countries around the world are addressing the strategic need to have secure access to increasing amounts of low carbon energy. Ultra has a range of safety critical sensors and controls used in existing and new build nuclear reactors. The Group has innovative portable energy sources powered by readily available propane gas. Ultra also has specialist sensors, derived from defence applications, which are highly effective in the underwater environment at hydrocarbon mapping.