Interim Management Statement

SEPURA PLC

INTERIM MANAGEMENT STATEMENT

Sepura plc (the "Company"), a leading global provider of TETRA digital radios, today issues the following Interim Management Statement. This statement, as required by the UK Listing Authority's Disclosure and Transparency Rules, refers to the Company's trading results for the period from1 April 2010 to 20 July 2010.

Trends in the first quarter were mixed as outlined below. However our broad spread of markets has given us resilience and allows the Board to reaffirm its guidance for the full year given at the time of our preliminary results in June.

Further success in Germany

We continue to be successful in Germany and we have received confirmation of the award of the Rheinland-Pfalz tender. This four year framework contract is to supply all of the police, fire and rescue services across the State with up to 37,000 terminals. This win, which follows the award of Saarland announced in June, confirms our position as market leader in the world's largest TETRA market with over 60% of the volumes awarded to date. We expect deliveries to Rheinland-Pfalz to begin during the second half of the year and remain confident that, given this important new win and other German contracts awarded to date, total volumes in Germany this year will significantly exceed those delivered last year.

UK refresh business

At the time of the release of our Preliminary Results for the year ended 31 March 2010, we advised that we expected to see much reduced volumes in the UK this year. Following the UK Government's emergency budget on 22 June, a small number of customers have advised us that their refresh projects are on hold pending review of their capital budgets.

Other markets

Budget reductions introduced by other governments have resulted in some softening of demand in some other geographies, including Spain and Italy. This is balanced by improving demand from customers in Latin America and APAC..

Board changes

Philip Nolan has informed the Board that he wishes to step down as Chairman of the Company to pursue other interests.

The Nominations Committee, led by Tim Bunting (our Senior Independent Director), has conducted a search for a successor and is pleased to announce that John Hughes has agreed to join the Board as Chairman. Phil will step down from the Board immediately following the AGM whereupon John will assume the Chairmanship. Further details on John's appointment are given in a separate announcement.

The Board would like to thank Phil for the significant contribution he has made to the development of Sepura and to wish him well for the future.

Outlook

The delays due to reappraisal of capital budgets in the UK and Southern Europe mean that we expect our first half to be slow but, bolstered by our strong position in Germany, we expect our second half to be strong and volumes for the full year to be on target. Therefore the Board's expectations of increased volumes and revenue this year remain as previously advised, weighted towards the second half and subject to the inherent lumpiness in the TETRA market.

For further information please contact:

Sepura plc Tel: 01223 876 000

Phil Nolan, Chairman

Gordon Watling, Chief Executive Officer

Powerscourt (Media Enquiries) Tel: 020 7250 1446

Paul Durman

Rob Greening

Cautionary Statement:

This Interim Management Statement contains certain forward-looking statements with respect to the operations, performance and financial condition of Sepura. By their nature, future events and circumstances can cause results and developments to differ from those anticipated. Nothing in this Interim Management Statement should be construed as a profit forecast. No undertaking is given to update the forward-looking statements whether as a result of new information, future events or otherwise. 

Notes to Editors:

About Sepura

Sepura is a global leader in the design, manufacture and supply of TETRA (TErrestrial Trunked RAdio) digital radios, which are used predominantly by the emergency services around the world and in the transport, utilities and commercial sectors.

Our products deliver mission critical communications.

Sepura offers one of the broadest ranges of TETRA products available, is often first to market with innovative products and features, and is a market leader in the supply of surveillance and other specialist TETRA radios and accessories. Founded in the UK in 2002, Sepura has expanded rapidly across the world with a network of regional partners that sell and provide local support for our market-leading products and is market leader in over 30 countries.

TETRA technology has now become the dominant digital Private Mobile Radio standard in the world. Our vision is to become the number one global supplier of TETRA radios and we are firmly on course to achieve this goal.

Based in Cambridge, England, and employing some 300 people across the business, the Company was admitted to the Official List of the London Stock Exchange on 3 August 2007.

For further information please visit www.sepura.com.