Director Shareholding

For immediate release 31 October 2012

Spectra Systems Corporation

("The Company" or "Spectra")

Spectra Systems Director Shareholding

Spectra Systems (AIM: SPSY.L) has received notification that on 30 October 2012, Nabil M. Lawandy, CEO and a director of the Company, acquired 100,000 shares in the common stock of the Company ("Shares") at a price of 40 pence per share. 65,000 of these shares are in the unrestricted class (SPSY) and 35,000 are in the Regulation S class (SPSC).

It is Dr. Lawandy's intention to convert all of his shareholding into the unrestricted class as soon as practicable.

Following the acquisition, Dr. Lawandy will have an interest in the Company of 1,858,570 Shares, representing 4.10 % of the Company's issued share capital.

Enquiries:

Spectra Systems Corporation

Dr. Nabil M. Lawandy, Chief Executive Officer Tel: +1 (0) 401 274 4700

WH Ireland Limited

Chris Fielding (Head of Corporate Finance) Tel: +44 (0) 20 7220 1650

Media Enquires:

The Communications Portfolio Limited

Ariane Comstive / Caolan Mahon Tel: +44 (0) 20 7536 2028 / 2029

[email protected]