Strategy & Trading Update

Spirent Communications PLC
05 October 2006


                           SPIRENT COMMUNICATIONS PLC

                    UPDATE ON STRATEGY AND CURRENT TRADING:

                            MARGIN IMPROVEMENT PLAN

                     PROPOSED ADDITIONAL RETURN OF CAPITAL

                              REVIEW OF US LISTING

London, UK - 5 October 2006: Spirent Communications plc ("Spirent" "the Company"
or "the Group") (LSE: SPT; NYSE: SPM), a leading communications technology
company, is today issuing an update on current trading together with an update
on its strategy, which includes plans for a further return of capital and its
intention to seek a US de-listing.

Highlights:

   • Current trading in line with expectations with important new customer wins

   • Target to improve operating margin in Performance Analysis Broadband to a 
     15% run rate by the end of 2007 - additional restructuring actions 
     announced across Communications

   • Proposed additional return of capital of £50 million

   • Intention to pursue US de-listing and SEC de-registration

Trading update

Trading in the third quarter has been consistent with the outlook indicated at
the time of the interim results reported on 10 August 2006. The introduction of
new products and enhancements to existing products, together with the
contribution from acquisitions, is expected to lead to a modest increase in
revenue for 2006 compared with 2005. Combined with the benefits of the
restructuring actions taken in June 2006, this is expected to result in an
improved performance for the year as a whole although, as in recent years, this
will be dependent on the performance in Spirent's critical fourth quarter.

Spirent continues to show good momentum gaining market share in its key markets,
with continuing strong sales performance from Spirent TestCenterTM, which has
been purchased by more than 125 customers worldwide including all Spirent's top
10 customers to date. Other new and enhanced products continue to perform well,
as do Spirent's faster growing regions such as Asia Pacific. Spirent has also
won strategically important orders for its recently acquired products, such as
SwissQual's new high-end Diversity platform for GSM/UMTS & HSDPA wireless
benchmarking, which recently won a contract with O2 Germany, marking a
significant step in Spirent's growth in the wireless market.

Update on strategy

Background

At the time of the disposal of HellermannTyton, the Board reiterated that
Spirent's strategy is to focus on its telecommunications business and on
creating shareholder value. It also stated that the proceeds from the disposal
would in part be applied to growing Spirent by means of organic investment and
selective acquisitions. In addition, we will continue to review Spirent's non-
core business and how we might maximise its value for the benefit of
shareholders. This fundamental strategic direction remains unchanged.

Margin improvement plan

The Board continues to carefully manage the balance between Spirent's cost base
and maintaining the capability to generate long term growth against a background
of significant product transition in its two core communications businesses,
Performance Analysis and Service Assurance. It therefore continues to focus on
the realignment of resources and reduction in operating expenses where
appropriate across all divisions, whilst continuing to invest for the longer
term in Spirent's existing and new products. This strategy positions Spirent to
grow organically by gaining market share for next-generation products and
solutions in triple play, wireless and fixed/mobile convergence.

Performance Analysis has two main product areas, Broadband and Wireless
Positioning, being 71 per cent of sales and 29 per cent of sales, respectively.
The strategic objective is to expand both the Broadband and Wireless Positioning
businesses, whilst improving margins to targeted levels in the former and
maintaining existing best in class returns in the latter.

In Performance Analysis Broadband, the Board is targeting a long term
improvement in operating margin. The interim goal aims to deliver a run rate of
15 per cent by the end of 2007, with scope for further expansion in the future.
Spirent continues to make significant organic investment in this division, most
notably in its new platform, Spirent TestCenter. Spirent TestCenter was
developed to change the game in testing by consolidating a host of solutions on
a single platform. It is expected that 2006 will be the peak year in development
spending on the platform and as its success grows, Spirent expects to be able to
rationalise its product portfolio. This in turn is expected to realise
significant operating efficiencies in product development, sales and marketing
and other areas within the division.

As previously announced, significant restructuring actions were undertaken in
the first half of 2006, the majority of which were within Service Assurance.
This strategy will allow Service Assurance to target a break-even position in
the short term while continuing to invest in the future of next-generation
triple play IP monitoring solutions. Actions taken in the first half within
Performance Analysis included changes to senior management and a reduction in
work force.

Restructuring actions

Spirent announces further restructuring plans across its Communications
businesses to help achieve its divisional margin targets; these are in addition
to the restructuring actions announced in June 2006.

In Performance Analysis operating costs will be reduced by around a further 
£6 million on an annualised basis at a one-time cost of around £1 million (to be
expensed in the current financial year). The benefit of these savings will take
effect during the fourth quarter of 2006. In Service Assurance, consultations
have begun with regard to the closure of Spirent's loss making Glasgow and
Belfast locations. This process will take some six months to conclude, with a
projected annualised saving of £1 million identified at a one-time cost of
around £1.5 million, plus a provision for vacant property of £1.5 million. These
activities are expected to be transferred elsewhere within the division.

Proposed additional return of capital

As part of its growth plan, Spirent has this year also completed four small, but
strategic acquisitions it had identified as attractive additions to Performance
Analysis, enhancing the capabilities of both the Broadband and Wireless
Positioning businesses, for an initial total consideration of £39.7 million.
Whilst the Board will continue to review opportunities for value enhancing
acquisitions the priority for the immediate future is to grow market share
organically, taking advantage of the industry's anticipated future increase in
spending on next-generation networks worldwide.

Accordingly, the Communications businesses are not expected to need significant
cash resources for acquisitions in the near future and the Board also believes
that now is the time to make the Group's capital structure more efficient. The
Board therefore proposes to return an additional £50 million of the Group's
current cash balance to shareholders. The existing rolling buy back programme
has to date returned £28.6 million through the purchase of some 68.4 million
shares and it is anticipated that the remaining £21.4 million will be returned
to shareholders before the end of the current financial year. The additional
return of capital will require shareholder approval in due course and together
with the current programme will result in a total return of capital of £100
million.

Review of US listing and SEC registration

The Company has for a number of years been listed on both the London Stock
Exchange and the New York Stock Exchange, with its primary listing in London.
The US listing has however become significantly more costly and onerous in
recent years, not least due to the imposition of the Sarbanes Oxley regulations.
The current annual costs are some £3 million; the Board believes that this is
disproportionate to the actual or potential benefit in maintaining the US
listing and therefore has initiated a review to explore an efficient process by
which the Company can de-list its shares and de-register in the United States.
As a significant proportion of US employees are beneficiaries of share based
incentive schemes, it is likely that as part of the review alternative incentive
plans will need to be put in place.

A further update on progress towards de-listing and de-registration will be made
as appropriate.

Anders Gustafsson, Chief Executive, commented:

"I am pleased to report that Spirent's current trading is in line with
expectations and that we are on track to report an improved overall performance
for 2006.

"The Board's annual strategy review has resulted in a proposed additional return
of capital, reiteration of our margin improvement plans and an intention to de-
list our shares and de-register in the US. These actions are in line with our
plan to deliver shareholder value."


                                   - ends -


Anders Gustafsson,       Spirent Communications plc           [phone]
Chief Executive
Eric Hutchinson, 
Chief Financial Officer

Reg Hoare/ Katie Hunt/ Libby Young       Smithfield          [phone]


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About Spirent Communications plc

Spirent Communications plc is a leading communications technology company
focused on delivering innovative systems and services to meet the needs of
customers worldwide. We are a global provider of performance analysis and
service assurance solutions that enable the development and deployment of next-
generation networking technologies such as broadband services, Internet
telephony, 3G wireless and web applications and security testing. The Systems
group develops power control systems for specialist electrical vehicles in the
mobility and industrial markets. Further information about Spirent
Communications plc can be found at www.spirent.com.

Spirent Communications plc Ordinary shares are traded on the London Stock
Exchange (ticker: SPT) and on the New York Stock Exchange (ticker: SPM; CUSIP
number: 84856M209) in the form of American Depositary Shares ("ADS"),
represented by American Depositary Receipts, with one ADS representing four
Ordinary shares.

Spirent and the Spirent logo are trademarks or registered trademarks of Spirent
Communications plc. All other trademarks or registered trademarks mentioned
herein are held by their respective companies. All rights reserved.


This press release may contain forward-looking statements (as that term is
defined in the United States Private Securities Litigation Reform Act of 1995)
based on current expectations or beliefs, as well as assumptions about future
events. You can sometimes, but not always, identify these statements by the use
of a date in the future or such words as "will", "anticipate", "estimate",
"expect", "project", "intend", "plan", "should", "may", "assume" and other
similar words. By their nature, forward-looking statements are inherently
predictive and speculative and involve risk and uncertainty because they relate
to events and depend on circumstances that will occur in the future. You should
not place undue reliance on these forward-looking statements, which are not a
guarantee of future performance and are subject to factors that could cause our
actual results to differ materially from those expressed or implied by these
statements. Such factors include, but are not limited to: the extent to which
customers continue to invest in next-generation technology and deploy advanced
IP-based services; our ability to manage a significant transition in product
revenues to new product solutions incorporating latest technology; our ability
to successfully expand our customer base; continuing variable market conditions;
pace of economic recovery; our ability to improve efficiency, achieve the
benefits of our cost reduction goals and adapt to economic changes and other
changes in demand or market conditions; our ability to develop and commercialise
new products and services, extend our existing capabilities in IP services and
expand our product offering internationally; our ability to attract and retain
qualified personnel; the effects of competition on our business; fluctuations in
exchange rates and heavy exposure to the US dollar; changes in the business,
financial condition or prospects of one or more of our major customers; risks of
doing business internationally; risks relating to the acquisition or sale of
businesses and our subsequent ability to integrate businesses; our reliance on
proprietary technology; our exposure to liabilities for product defects; our
reliance on third party manufacturers and suppliers; and other risks described
from time to time in Spirent Communications plc's Securities and Exchange
Commission periodic reports and filings. The Company undertakes no obligation to
update any forward-looking statements contained in this press release, whether
as a result of new information, future events or otherwise.



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