Distribution Agreement in South America

8 October 2013

Starcom PLC

("Starcom"or the "Company")

Distribution Agreement in South America

Starcom (AIM: STAR), which specialises in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets and people, is pleased to announce a non-exclusive distribution agreement with MAM Objects S.L, a telecommunications distributor with operations in South America which is also the exclusive distributor for a major global telecommunications company in the territory. The agreement, related to the distribution of the WatchLock, will see Starcom's award-winning device marketed and distributed throughout Central and South America with initial deployment in Ecuador and Colombia.

Starcom's CEO Avi Hartmann said:

"It is pleasing to see Starcom's global roll-out of its WatchLock device continue to gather momentum. Following the distribution agreement in the Ukraine earlier in the year, this agreement will see the WatchLock marketed in the fast developing Latin American market which we hope will result in significant sales of the product in the region. We continue to employ our strategy of working with distribution partners, as it offers us wide access to markets at a low cost point. Starcom looks forward to developing its Latin American presence, and expanding its market penetration into even more geographies in the future."

About Watchlock

The WatchLock device was launched by Starcom in May 2012 at the International Fire and Safety Exhibition and Conference (IFSEC) trade show, where it won the award for Physical Security Innovation Product of the Year. The product secures fixed and mobile assets in the same way as a normal padlock, but has the added functionality of real time location services and tracking. It sends a report to its owner if there is any attempted tampering while simultaneously transmitting its location to an on line web portal, making it ideal for both applications in both mobile and static locations such as warehouses, pipelines, fencing, trucks, trailers and vending machines. It incorporates advanced key duplication control, can operate in extreme weather conditions and does not rely on an external power supply.

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