Ultra signs Memorandum of Understanding with AREVA

Embargoed until 7.00 13 December 2012

Ultra Electronics Holdings plc

("Ultra" or "the Group")

Ultra signs Memorandum of Understanding with AREVA to support the build of new EPR reactors within the UK

Ultra Electronics announced today that it has signed a Memorandum of Understanding with AREVA that will open the way for a future partnership in nuclear power generation and the build of new EPR reactors in the UK.

The agreement was signed by Ultra Chief Executive, Rakesh Sharma and AREVA President, Philippe Knocke and covers potential collaboration on high integrity I&C systems including reactor protection and control.

The agreement relates to the two EPR reactors planned by EDF Energy at Hinkley Point for which a site licence was granted last month. The collaboration could also extend to other EPR reactors including those planned at Sizewell.

The signing ceremony was attended by representatives from the UK Government and AREVA senior management.

Ultra Electronics is a strategic supplier of nuclear qualified instrumentation and control systems to key plant manufacturers and operators around the world. It currently supplies I&C equipment to 113 reactors in 16 countries.

Rakesh Sharma, Chief Executive of Ultra, commented:

"I am pleased to have signed this agreement which recognises Ultra's position in the supply of safety critical instrumentation & control to the global nuclear industry. Through our continuing strategic relationship we are happy to support AREVA with our proven range of proven specialist technologies."

- Ends -

Enquiries:

Ultra Electronics Holdings plc 020 8813 4321

Rakesh Sharma, Chief Executive www.ultra-electronics.com

Paul Dean, Group Finance Director

Media enquiries:

Susan Ellis, Senior Communications Adviser 07836 522722

James White, MHP Communications 020 3128 8756

Ultra Electronics is an internationally successful defence, security, transport and energy company with a long, consistent track record of development and growth. Ultra businesses constantly innovate to create solutions to customer requirements that are different from and better than those of the Group's competitors. The Group has about one hundred and eighty distinct market or technology niches within its twenty-nine businesses. The diversity of niches enables Ultra to contribute to a large number of platforms and programmes and provides resilience to the Group's financial performance.

Ultra has world-leading positions in many of its niches and, as an independent, non-threatening partner, is able to support all of the main prime contractors with specialist capabilities and solutions. As a result of such positioning, Ultra's systems, equipment or services are often mission-critical to the successful operation of the platform to which they contribute. In turn, this mission-criticality secures Ultra's positions for the long-term which underpin the superior financial performance of the Group.

Ultra offers support to its customers through the design, delivery and support phases of a programme. The Group's businesses have a high degree of operational autonomy where the local management teams are empowered to devise and implement competitive strategies that reflect their expertise in their specific niches. The Group has a small head office and executive team that provide to the individual businesses the same agile, responsive support that they provide to customers as well as formulating Ultra's overarching, corporate strategy.

Across the Group's three divisions, the major market sectors in which Ultra operates are:

Defence: Ultra supplies advanced electronic and electrical systems and equipment to coalition defence forces around the world. The Group innovates to provide specialist capabilities that are superior to those available to the enemy. By focusing on delivering comparative military advantage, Ultra can gain market share and exploit the headroom for growth that is available in defence budgets worldwide.

Security and cyber: Ultra provides highly differentiated systems and capabilities to the broad security, intelligence and cyber market. Driven by the actions of rogue states, terrorist groups and organised crime, governments worldwide are focusing expenditure preferentially on addressing these threats. Ultra has highly specialised capabilities in secure communications, networks and high-grade cryptographic equipment, key management systems and surveillance and intelligence gathering systems.

Transport: Ultra provides specialist software, systems and equipment for use in mass passenger transport systems. This includes high integrity real-time controls for civil aircraft, advanced IT solutions for modern airports and trackside power equipment for transit rail systems. Demand in these areas, is driven by rising populations in affluent and developing regions of the world.

Energy: Countries around the world are addressing the strategic need to have secure access to increasing amounts of low carbon energy. Ultra has a range of safety critical sensors and controls used in existing and new build nuclear reactors. The Group has innovative portable energy sources powered by readily available propane gas. Ultra also has specialist sensors, derived from defence applications, which are highly effective in the underwater environment at hydrocarbon mapping.