Trading update

17 December 2010

TELIT COMMUNICATIONS PLC

("Telit" or the "Company")

Trading update

The Board of Telit, the leading machine-to-machine wireless technology company, is pleased to confirm that trading in the fourth quarter 2010 has continued the positive trends reported in the third quarter 2010 trading update announced on 6 October 2010.

The Board continues to consider that the highly competitive and specialist nature of the m2m market will lead to the market consolidating around a small number of focused major operators, including Telit. Telit has, in recent weeks, been actively exploring a number of opportunities including a potential acquisition which, if completed, would materially increase Telit in reach and scale.

Whilst these discussions have had the express support of investors, Telit has been unable to reach final agreement on terms that would be in the interests of the company and shareholders. Accordingly, Telit anticipates that profits in the financial year ended 31 December 2010 will be adversely impacted by approximately $0.4m in respect of professional fees and expenses incurred in pursuing these opportunities. Telit will continue to explore consolidation value enhancing opportunities in the New Year.

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

Telit Communications PLC +39 06 420 4601

Oozi Cats, CEO

Oozicats@telit.com

Yariv Dafna, CFO

Yariv.dafna@telit

Michael Galai, VP Legal & General counsel

michaelg@telit.com

Investec +44 20 7597 4000

Andrew Pinder

Dominic Emery