Trading Statement

22 February 2018

Starcom Plc

("Starcom" or the "Company")

Update on expected results for 2017

In the Company's trading update announcement of 18 January 2018, the Board set out its expectations for the results for the year ended 31 December 2017 which were subject to audit. Although the audit process is not yet completed, it has become clear that the final results for 2017 will differ materially from those previously anticipated in that announcement.

Although the Board still expects that, compared with the results for the previous year, the results for 2017 will show a considerable improvement in revenues and gross margins and a significant reduction in consolidated net loss after taxation, the Company is now likely to report a consolidated net loss after taxation materially higher than the breakeven to small loss previously indicated. The major variances relate to share-based payment costs, unrealised exchange differences and certain holding company costs.

Full details of the variances from the results anticipated will be given in the audited financial statements which are expected to be published during the week beginning Monday 5 March 2018.

As previously stated, the Company is experiencing one of its highest levels of orders for delivery in the first half of the year. This reflects increased orders for the higher margin Tetis, Kylos, Kylos Air and Watchlock products.

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This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For further information, please contact:

Starcom Plc

Michael Rosenberg, Chairman 07785 727 595

Avi Hartmann, CEO +972 5447 35663

Northland Capital Partners Limited (Nominated Adviser and Broker) 020 3861 6625

Edward Hutton / David Hignell (Corporate Finance)

John Howes (Sales and Broking)

Peterhouse Corporate Finance (Joint Broker) 020 7469 0930

Lucy Williams / Charles Goodfellow / Eran Zucker

Leander PR (Financial PR) 07795 168 157

Christian Taylor-Wilkinson