Contract Win

Embargoed until 0700 12 December 2012

Ultra Electronics Holdings plc

("Ultra" or "the Group")

Ultra wins $53m US Navy sonobuoy orders

Ultra announces that its USSI business, based in Columbia City, Indiana, US, has received US Navy contracts for sonobuoys worth in excess of $53m. The contracts have been awarded through ERAPSCO, Ultra's joint venture with the Sparton Corporation that supplies all sonobuoys to the US Navy. Production will take place over a 2 year period and is expected to be completed in January 2015.

Ultra, which has sonobuoy businesses in the UK, the USA and Canada, develops and manufactures high technology sonobuoys, the acoustic sensors which are used to detect the presence of submarines. The awards are for the latest generation passive and active sonobuoys. Passive sonobuoys are optimised to detect the machinery noise which emanates from submarines moving through the ocean. Active sonobuoys transmit acoustic energy pulses and sense the echo returns from potential targets.

Rakesh Sharma, Chief Executive Officer of Ultra, commented:

"We have been able to secure this award because of our focus on constant product innovation coupled with high quality manufacturing and on-time delivery. We are delighted that that the US Navy continues to recognise the support it receives from USSI and ERAPSCO by awarding this contract in an area of preferential funding at a time when the procurement process in the US is under increasing pressure. Awards such as this help maintain the Group's order book and show the resilience that Ultra derives by fostering enduring customer relationships."

- Ends -

Enquiries:

Ultra Electronics Holdings plc 020 8813 4321

Rakesh Sharma, Chief Executive www.ultra-electronics.com

Paul Dean, Group Finance Director

Media enquiries:

Susan Ellis, Senior Communications Adviser 07836 522722

James White, MHP Communications 020 3128 8756

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 about one hundred and eighty distinct market or technology niches within its twenty-nine 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. The Group's 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 thebroad 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 these 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.