Trading update

14 September 2016

SEPURA PLC

Trading update

Sepura PLC (LSE: SEPU, "the Group"), a leading global provider of critical communications solutions, today issues the following trading update.

Order intake in recent months has been lower than the Board's expectations as a result of emerging delays in Device refresh opportunities in a number of key markets, primarily through budgetary pressures which are extending product lifecycles. At the same time, key contract awards in the Group's Systems business have also been subject to delay.

The latest sales pipeline and associated timing indicates that order intake for the full year will have a significant impact on the Group's FY17 revenues. As a result the Board now anticipates adjusted EBITDA for the current financial year could be c. 60% lower than its previous expectations.

The Group has sufficient liquidity for its forecast needs. The revised revenue expectations may require Sepura to discuss with its lenders a possible waiver of certain of its covenants from March 2017.

Further significant savings are being targeted to realign fundamentally the cost base as part of the continual drive for operational efficiencies across the Group.

The Board will provide a further update at the earliest opportunity.

Richard Smith, Acting Chief Executive Officer, commented:

"It has become clear that we will not be able to meet our original adjusted EBITDA target. Realigning and reducing the cost base will help mitigate the impact of lower revenues in the current year. Our strong sales pipeline continues to give us confidence in the Group's longer-term prospects."

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Inside information and forward-looking statements

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

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 any forward-looking statement whether as a result of new information, future events or otherwise.

Notes to Editors:

Sepura is a global leader in the design, manufacture and supply of digital radios, infrastructure and applications for Professional Mobile Radio ("PMR") users, providing specialist solutions for the public safety, transportation, oil and gas, mining, utilities, industrial and other commercial sectors.

Founded in the UK in 2002, Sepura has expanded rapidly across the world and is now a market leader in over 30 countries, with a network of regional partners that sell, and provide local support for, its market-leading products. Sepura's proven track record of focussing on exciting high growth opportunities, product innovation and delivering quality and customer service was recognised in April 2015 with the award of the prestigious Queen's Award for Enterprise: International Trade.

Headquartered in Cambridge, England and with over 700 employees, Sepura was admitted to the Official List of the London Stock Exchange on 3 August 2007.

www.sepura.com