Sepura acquires 3T communications

Sepura strengthens commercial offering with

acquisition of 3T Communications AG

May 16, 2012: Sepura plc ("Sepura"; "the Company"), a global leader in the design, development and supply of TETRA digital radios, today announces the acquisition of 3T Communications AG ("3T"), a supplier of TETRA infrastructure, for initial cash consideration of €8 million with further contingent consideration of up to €5 million payable dependent on 3T achieving cash EBITDA targets over an earn-out period. The combination of Sepura's market leading radio portfolio with 3T's comprehensive infrastructure offering enables customers to procure an entire critical communications solution from a single supplier.

3T designs and implements small to mid size TETRA systems predominantly for the commercial sector, including enterprise customers such as Shell, RWE, Bayer and BMW. The commercial segment is the fastest growing within the worldwide TETRA market as it develops beyond its public safety origins.

3T's contracts typically generate revenues over a multi-year cycle with maintenance revenues, project expansions and other change requests being incremental to the original contract value. This will lead to an improvement in Sepura's base of recurring revenues.

Based in Vienna, Austria, 3T generated revenues of €12 million for the year ended 31 December 2011, with adjusted EBITDA of €1.3 million and profit before tax of €0.4m. 3T's current revenue is derived primarily from Europe, giving Sepura the opportunity to generate significant incremental revenue by offering 3T's products through the Company's comprehensive worldwide routes to market. We also expect to realise cost synergies through a combination of engineering design improvements, improved supply chain management and the elimination of duplicate engineering, marketing and administrative expenses.

The acquisition is expected to be earnings enhancing to Sepura for the current financial year and beyond. The acquisition is on a cash-free and debt-free basis and will be funded from existing cash reserves, the partial use of our previously undrawn debt facility with Barclays and up to €1m of the deferred consideration payable in shares in the Company.

Gordon Watling, CEO of Sepura, commented: "Through acquiring 3T, we have significantly increased the market opportunity for Sepura and enhanced our competitive position whilst underlining our drive to further enhance shareholder value. We have an excellent understanding of 3T's products and management team through our existing long term partnership, and are excited to be able to meet the increasing demand from our growing commercial customer base for an end-to-end TETRA solution. We are particularly excited by the opportunity to supply a full solution to customers for our ATEX products."

Thomas Haschberger, CEO of 3T, added: "We have seen increasing interest from our commercial customers for mission critical systems from one supplier and this combination provides the opportunity to deliver that. Sepura's reputation and established routes to market also open up significant new geographies to us. We have been impressed with Sepura's vision, which is consistent with our strategy, and are excited to be joining them at this time."

Sepura expects to announce its audited results for the year ended 30 March 2012, which as previously announced will be presented in Euros, on Wednesday 13 June 2012. The Company will provide additional information regarding the acquisition of 3T at the results presentation.

For further information please contact:

Sepura plc Tel: 01223 876 000

Gordon Watling, Chief Executive Officer

Steve Chamberlain, Chief Financial Officer

Peter Connor, Investor Relations

Powerscourt (Media Enquiries) Tel: 020 7250 1446

Paul Durman

Cautionary Statement:

This announcement 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 announcement 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 we are the market leader in over 30 countries.

Based in Cambridge, England and employing some 275 employees, Sepura was admitted to the Official List of the London Stock Exchange on 3 August 2007. For further information please visit www.sepura.com.

About 3T:

3T is an established supplier of small to mid-size TETRA networks, primarily for users in the utility, oil and gas, transport, and public safety sectors. 3T delivers tailored solutions which combine innovative products, state-of-the-art technology and comprehensive service.

3T has 45 employees in Vienna, Austria and Littleport, England. For further information please visit www.3t-ag.com.