Exit from Handset Antennae & Trading Update

17 June 2011

LAIRD PLC

Exit from Handset Antennae business and Update on Trading

Laird PLC ("Laird"), a leader in the design and supply of performance critical components and systems for wireless and other advanced electronic applications, today announces the exit from its Handset Antennae business and an update on trading.

Exit from Handset Antennae business

Following the review of the strategic options for the Handset Antennae business, announced in the Interim Management Statement on 6 May 2011, the Board of Laird has decided to exit the business and monetise the remaining assets held within it.

Despite the restructuring actions taken, the Handset Antenna business ran only at breakeven during the first quarter and revenues continued to decline thereafter, reflecting reduced demand from the major customer. In 2010 this customer accounted for 70% of the business' revenues. After consideration of a number of strategic options and discussions with the major customer, the Board has decided to close the Handset Antennae business. Existing contractual order obligations will be fulfilled during 2011 and 2012 but the closure process will start immediately.

Following the closure of the Handset Antennae business, Laird's revenues generated from what was historically its largest customer, are expected to be minimal.

This decisive action will allow us to focus better on the rest of our businesses and to concentrate on continuing to strengthen our leading positions in high growth markets, in line with our overall strategy. Laird is well placed to benefit from the further demand growth that industry commentators are projecting in end markets which continue to require more of the technology and solutions that Laird supplies.

Update on trading

Trading since the end of March (excluding Handset Antennae) has continued to follow the trends seen in the first quarter.

For the year ended 31 December 2010, Performance Materials had revenue of £287.4 million, an increase of over 25% over 2009 (2009: £230.0 million); underlying operating profit was £38.7 million, an increase of 40% over 2009 (2009: £27.6 million); and a return on sales margin of 13.5%. Wireless Systems (ex Handset Antennae) would have had revenue of £130.9 million, an increase of 54% over 2009 (2009: £84.9 million); underlying operating profit of £10.3 million, an increase of 194% over 2009 (2009: £3.5 million); and a return on sales margin of 7.9%(1). Overall the return on sales margin in 2010 (excluding Handset Antennae and Mechanisms) was 10.1%(2).

Laird's like-for-like revenue (excluding Handset Antennae) in the second quarter of 2011 is expected to be higher than the first quarter of 2011 and also for the same period than in 2010.

We expect the closure of the Handset Antennae business, together with associated restructuring, to be cash positive in the region of £20 million. In addition, a non-cash impairment charge will be taken at the Half Year.

The Board's expectations for the full year remain unchanged despite the decline of the Handset Antennae business and our resultant decision to exit. We continue to benefit from the improved demand in our end user markets, the diversification of our customer base, and the strength of our underlying business.

1, 2 Calculated from the Annual Report and Accounts 2010