Grant Monies Received and update on Tax Assessment

TELIT COMMUNICATIONS PLC

("Telit" or the "Company")

Grant Monies Received and update on Tax Assessment

Telit Communications PLC is pleased to announce that it has received the second instalment, in the amount of approximately US$5.7 million, from the previously announced award from the Italian ministry of Economic Development. This instalment of the award, which was obtained in 2006, is split into a US$1.9 million grant and a US$3.8 million loan at favorable terms, secured by the Italian government with a repayment schedule spanning 10 years. This payment brings the amounts already received to 90% of the total award with the remaining 10% expected to be received in 2011.

The award was granted in connection with Telit's R&D facility in Sardinina which, since its incorporation in 2006, has greatly strengthened Telit's R&D capabilities and has already contributed to Telit's product portfolio with the addition of the UMTS, WiFi and integrated applications. The Sardinia facility, currently employing 40 R&D personnel, specialises in short range RF technologies such as Bluetooth, Zigbee and WiFi, as well as the convergance of long and short range technologies.

Telit further announces that its Italian subsidiary, Telit Communications SpA has received an assessment from the Italian tax authorities in the amount of approximately €2.7 million in connection with 2005 tax year (including €1.4 million of VAT amounts), which is in line with previous communications received by the Company from the authorities following a tax audit that took place in 2008, as reported in the Company's annual reports for 2008 and 2009. The Company, after taking advice from its Italian tax consultants, believes it has strong arguments against the assessment and intends to defend its position vigorously, and further believes that the provision it has made againt this liability in the 2009 fulll year accounts is sufficient. Further details shall be provided in the Company's annual report for 2010.

ENDS

About Telit

Telit is an internationally leading specialist in wireless machine-to-machine (M2M) technology. Telit is the only company worldwide to offer communications modules for all of the various wireless technologies: it develops, produces and markets modules for GSM/GPRS, UMTS/HSDPA, CDMA and Short-Range RF applications. M2M applications rationalize business processes by enabling machines, equipment and vehicles to communicate with each other via mobile networks.

Telit products are used all over the world and marketed via Telit's offices in Brazil, China, Denmark, France, Germany, Israel, Italy, Korea, Spain, the Republic of South Africa, Russia, Taiwan, Turkey, the UK and the U.S. Telit's global distributor network comprises specialists in wireless technologies and enhances the customer experience in over 56 countries worldwide. Telit Communications PLC is listed on AIM (ticker: TCM). Further information about Telit and its products can be found at www.telit.com.

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