Trading Update

Telit Communications PLC

("Telit" or "the Company")

Trading Update

 The Board of Telit (AIM: TCM), a leading machine-to-machine wireless technology company, is pleased to provide a trading update ahead of its interim results for the six months ended 30 June 2012.

The Company expects that unaudited revenues in H1 2012 will be approximately $99 million, an increase of 22% over revenues in H1 2011 (H1 2011: $81.1m). Net debt at 30 June 2012 is expected to be approximately $1 million (31.12.2011: net cash $0.5m).

During the first half of 2012, the Company accomplished an important element of its growth strategy, in establishing the infrastructure for its m2mAir business unit and starting a soft launch of its managed services. As part of the soft launch the Company initiated pilots with more than 80 customers. The Company estimates that the pilot customers alone represent a potential market of more than 1 million annual subscriptions, and is pleased to note that a number of pilot customers have already become fully-fledged commercial customers. The m2mAIR managed services business should provide Telit with a recurring revenue stream in addition to the revenues achieved by the Company from its established module business.

Telit continues to enjoy a strong position in its established M2M module market. The Company's modules cover all cellular technologies and also location and short-range technologies. This broad coverage, coupled with the global presence of the Company, its on-going commitment to R&D and customer support, has enabled the Company to deliver a strong start to the current financial year.

The Board is confident that overall trading remains in line with expectations and looks forward to continued growth in the second half of 2012.

Telit expects to announce its results for the six months ended 30 June 2012 on or about 10 September 2012.

For further information please visit www.telit.com or contact:

Telit Communications PLC +39 06 420 4601

Oozi Cats, CEO[email protected]

Yosi Fait, Finance director[email protected]

Yariv Dafna, CFO Yariv.dafna@telit.com

Canaccord Genuity +44 20 7523 8000Simon Bridges Cameron Duncan

Notes to Editors

Telit sells its products through a network of value added resellers to more than 5,000 communications solution providers and systems integrators in more than 60 countries around the world. Our customers are served both directly or through a global network of more than 50 distributors.

Telit's headquarters are in Rome, Italy, with regional headquarters in Raleigh NC, USA and Seoul, Korea. Its R&D centres are in Trieste and Cagliari, Italy, Seoul, Korea Sofia Antipolis, France, Tel-Aviv and Jordan Valley, Israel and Foothill Range, California, with regional sales offices in Brazil, China, Denmark, France, Germany, Great Britain, India, Israel, Italy, Korea, Poland, Russia, Spain, the Republic of South Africa, Taiwan, Turkey and the USA

Telit provides global support to its international customers covering substantially all of the m2m market verticals. Its vast experience doing business across the globe has helped Telit establish strong channels and excellent access to key suppliers, customers and distributors in all major world markets. Telit's diverse worldwide customer base includes cellular operators and cellular distributors, as well as designers, manufacturers and system integrators of cellular m2m module-based applications.

Brief introduction to the machine to machine (m2m) market

Machine to machine (m2m) technology establishes wireless communication between machines and the information centre of a business. The goal of m2m is to enable applications that allow businesses to increase productivity and competitiveness. At the heart of each m2m implementation is a communication module which receives processes and transmits information.

The international market for machine-to-machine (m2m) wireless communications is rapidly growing as wireless communications are now a must-have rather than a luxury technology. Businesses that were not interested in m2m wireless solutions in the past are now looking to incorporate this technology in their business as their operations expand and modernise.  

The Beecham Research report on the m2m sector, released in June 2011, analyses the latest market developments in all regions around the world and forecasts that the market will enjoy high growth over the coming years. Beecham Research believes that the number of units to be shipped will reach 95.5 million by 2015 representing a 2011-15 CAGR of 27.2%. Beecham Research also projects an average selling price decline of 11.6% p.a. resulting in a CAGR of 12.5 % growth in monetary value of the sector through to 2015 with a total value of m2m market of $1.5bn.