Potential acquisition of Google's Motorola Home

Pace plc

Statement re potential acquisition of Google's Motorola Home business

Pace plc ("Pace" or "the Company") notes the announcement from Google that it has reached agreement to sell its Motorola Home business. The Company was unable to reach an agreement with Google on terms that the Board believes would have been in the interests of Pace's shareholders. Accordingly, Pace has contacted the Financial Services Authority to request that the suspension of its securities from the Official List is lifted without delay. Pace expects the suspension to be lifted shortly.

Mike Pulli, Chief Executive Officer of Pace, said:

"We have made significant progress in developing our business over the past 12 months by being relentless in pursuing the strategy we announced in November 2011. That strategy is to transform our core economics, build on our position as the global leader in PayTV hardware and widen out our business into software, services and integrated solutions.

We viewed the potential acquisition of Google's Motorola Home business as an opportunity to accelerate our stated strategy, but only if real shareholder value could be delivered. Although we had the support of our major shareholders and committed facilities, we could not reach an appropriate conclusion to the potential transaction.

We remain confident in our 2012 financial results as recently stated in our Interim Management Statement on 14 November. We look forward to making a Trading Update to the market on 10 January to provide further detail of the progress we have made during the year, and continue to be encouraged about our prospects for the future."

Allan Leighton, Chairman of Pace, said:

"We would also like to put on record our thanks to our major shareholders. Their desire to engage in understanding the potential transaction and the manner in which they responded is a great example of how companies and shareholders can engage positively in these situations when shareholder value is the shared purpose of all."

-ends-

For further information please contact:

Chris Mather

Pace plc

+44 (0) 1274 537 002

Andrew Dowler / Charles Chichester

RLM Finsbury

+44 (0) 207 251 3801