Admission to AIM

SOFTWARE RADIO TECHNOLOGY PLC                         

                               ADMISSION TO AIM                                

Software Radio Technology plc ("SRT" or the "Company") was today admitted to
trading on AIM in conjunction with a placing which raised £4.04 million (before
expenses). The market capitalisation of the Company at the placing price of 35p
per share is £24.17 million. The ticker for the ordinary shares is "SRT".

Westhouse Securities LLP is acting as nominated adviser and broker to SRT.

SRT's Business

SRT uses its existing portfolio of IPR to develop wireless technology reference
designs which are licensed in the same form to multiple customers in return for
a combination of licence and product development support fees and ongoing
royalties. SRT does not manufacture anything.

The Group targets niche sectors of the national security market, where
governments drive the necessary investment and where the specification of
products is defined by internationally agreed and maintained standards.

A SRT reference design enables manufacturers to develop proprietary versions of
complex digital wireless products more rapidly and cost effectively than
through in-house development and without the associated development cost and
risk.

SRT has focused on digital communications and marine tracking technologies. The
Group currently licenses reference designs for a TETRA professional mobile
radio handset, a technology which is being adopted by security and emergency
services around the world, and automatic identification systems (AIS) for use
on commercial and leisure vessels. SRT has already developed an AIS Class A
transponder for use on commercial vessels and is nearing completion on its AIS
Class B transponder for leisure vessels.

SRT receives licence and product development support fees. SRT further receives
a significant per unit royalty on every product manufactured. For the TETRA
handset design, the licence and product development support fees have averaged
US$1.35 million per contract, with an average net royalty of approximately
US$20 per product manufactured. For AIS, the licence and product development
support fees are up to $300,000, with royalties of$30 to $120 per unit.

Royalties are secured through the inclusion of a single source component within
the hardware design over which SRT either has proprietary control or an
agreement in place with the component manufacturer to monitor, track and,
wherever possible, control the supply thereof.

Royalties are currently being received in respect of the AIS Class A design
from two customers and the Directors expect royalty income from its TETRA
reference design to commence during the first quarter of 2006.

Markets

TETRA is used in more countries than any other professional mobile radio
standard: over 70 countries in total. The Directors estimate that global demand
for TETRA handsets will increase from approximately 500,000 units in 2004 to
approximately four million units per annum by 2010, with Europe and Asia
together accounting for over 90 per cent of the market.

The SOLAS Agreement mandated the installation of AIS Class A transponders on
150,000 vessels worldwide. Following on from AIS Class A, the creation of a
simpler AIS Class B device has created interest from government agencies, such
as the US Coast Guard, in seeking to mandate AIS as standard equipment on all
marine vessels. The Directors estimate that if AIS Class B was mandated in the
US for leisure craft, it would create a market of approximately two million
units per annum.

Customers

SRT has, to date, signed seven licence contracts with leading electronics and
technology companies in the EU and Asia, in particular, China, of which four
are for the TETRA handset design and three are for AIS. A number of further
licence contracts are under negotiation.

The Directors believe that there is a preference for government agencies to
purchase national security related products from local suppliers. Indeed in
China, government agencies are required wherever commercially viable, to buy
products from local manufacturers. As a result, the Directors believe that the
Group's Asian TETRA handset customers are well placed to win a substantial
share of their local markets and a share of the international market.

Growth Strategy

The next stage in SRT's strategy in respect of its TETRA reference design is
the development of the next generation of the designs, the primary focus of
which will be on reducing manufacturing costs and should enable SRT to increase
its royalties. The immediate focus of its AIS development plans is the
completion of the AIS Class B reference design, for which the first contract
has already been signed.

SRT is also investigating the avionics market where the Directors believe that
a previous technology design trialled by the Company may give SRT a competitive
advantage. The Company is also accelerating its exploitation of its IPR
portfolio, with the objective of identifying further applications for the use
of its patented linearisation technology.

Key Statistics

Placing Price                                                               35p
                                                                               
Number of Ordinary Shares in issue following the Placing             69,044,530
                                                                               
Market capitalisation at the Placing Price on Admission          £24.17 million
                                                                               
Number of Ordinary Shares being placed on behalf of the              11,552,850
Company                                                                        
                                                                               
Number of Warrants in issue following the Placing *                  11,552,850
                                                                               
Percentage of Enlarged Share Capital being placed pursuant to   16.73 per cent.
the Placing                                                                    
                                                                               
Estimated net proceeds of the Placing                             £3.51 million

* The Warrants, which have been admitted to trading on AIM, entitle holders to
subscribe in cash for Ordinary Shares at an exercise price of 40p each at any
time from Admission up to and including the second anniversary of admission or
earlier in certain circumstances.

Shamus Kelly, Managing Director of SRT, commented:

"This is a very exciting time for SRT. Our shareholders have invested
significant amounts in developing our reference designs enabling us to license
them to a range of major electronics companies.

"We felt the time was right to float and raise further funding to advance the
development of the business, both by signing further licence contracts and by
helping our customers to develop their versions of our designs more quickly,
thereby generating royalties for SRT."

Simon Tucker, Commercial Director of SRT, commented:

"Our reference design approach has proved extremely attractive to the market.
It enables manufacturers to de-risk and speed up the development of complex
wireless products which are in demand in the market.

"We have already signed seven licence contracts which are generating
significant revenues even during the customers' product development phase. Our
first two TETRA customers are now nearing the production stage when we expect
the real benefits of our royalty model to start coming through."

For further information please contact:

Software Radio Technology plc                                Tel: [phone]
                                                                               
Simon Tucker                                       [e-mail]
                                                                               
Westhouse Securities LLP                                     Tel: [phone]
                                                                               
Tim Feather                                 [e-mail]
                                                                               
The Communication Group plc                                  Tel: [phone]
                                                                               
Richard Evans/Elizabeth Skerritt             [e-mail]

Notes to Editors

TETRA

TETRA (Terrestrial Trunked Radio) is an international mobile radio digital
communications standard designed specifically for professional mobile radio
(PMR) users. PMR users are characterised as users who rely on mission critical
communications to carry out their work, for example the police, military, fire
departments and transport companies. Digital systems offer advantages over
analogue systems, such as greater functionality, high level encryption and call
reliability. Being an open standard, TETRA also enables true interoperability
between different manufacturers' equipment, thereby facilitating the use of
handsets from multiple manufacturers on the same network. In the same way as
the mobile phone market, PMR users, driven by their requirements for greater
functionality and performance, are currently migrating from analogue to digital
systems, creating a rapidly growing market for digital radio systems.

Worldwide, there are an estimated 32 million PMR users, approximately 85 per
cent. of which are still operating on analogue systems. The overall PMR market
is growing annually at approximately 5 per cent. per annum, primarily driven by
national security concerns and the resulting government investment. However,
the digital element of the PMR market is growing more rapidly, due to the
migration from analogue to digital systems by PMR users.

Within the digital PMR market, there are a number of standards. TETRA is used
in more countries than any other standard: over 70 countries in total. The US,
where approximately 50 per cent. of the current global PMR market is located
and where Motorola's APCO 25 standard is prevalent, is the most notable
exception to the widespread adoption of TETRA. Outside of the US, this standard
is not commonly used.

AIS

AIS, or Automatic Identification System, is an international standard that was
initially developed to create an intelligent system using VHF and GPS
technologies to prevent large vessels colliding with each other. AIS
transponders continuously transmit the vessel's position, course and speed,
together with other identification details, whilst being able to receive
similar information from other AIS transponders within range. Each transponder
uses this information to calculate the relative position of other vessels and
automatically provide warnings of impending or potential collisions.

When operating in coastal waters, AIS is designed to feed information to
authorities through base stations located onshore or any other strategic point.
The information provided by each transponder is comprehensive and allows the
vessel to be instantly identified, monitored and tracked. The system also
provides a text messaging facility between vessels for private, line of sight
communications.

AIS was initially implemented in full in the form of AIS Class A transponders
in accordance with the IMO SOLAS Agreement. A simpler variant of the AIS Class
A standard is now nearing completion and will be known as AIS Class B. AIS
Class B uses the same basic principles, but removes functionality which is
deemed not necessary for smaller commercial and leisure vessels to which Class
B has been targeted.