Trading Statement

Sarantel Group PLC
12 October 2005



Embargoed until 7:00                                             12 October 2005

                        Sarantel Group PLC ('Sarantel')

                            Year End Trading Update


Sarantel, the leading manufacturer of revolutionary filtering antennas for
wireless devices, today provides an update for its financial year ended 30
September 2005. Full details of the preliminary results will be released on 30th
November 2005.

The Company is pleased to announce that it shipped 937,000 units in the
financial year ended 30 September 2005 (2004: 170,000 units), up 451% year on
year. Turnover is expected to be not less than £2.8 million (2004: £0.8
million), representing more than a three fold increase on the previous year and
loss before tax will not exceed £5.6 million* (2004: £3.8 million). Cash
balances at the year end totalled £13.0 million.

As stated previously, the Company aimed to ship at least 1 million units in the
year. This target was dependent upon the successful installation of new
equipment in March to boost capacity, and as announced in April, this
installation was delayed by over three months by two key suppliers. It is
important to note that demand remained strong and there were more than
sufficient orders in place to exceed the Company's goal of 1 million units,
which will be achieved by mid October.

During the second half, Sarantel continued to identify new business
opportunities in its core GPS market and achieved new design wins with customers
in Europe and Asia. Notably, the Company demonstrated its ability to diversify
its customer base and penetrate other high growth markets beyond GPS when it
received the largest single order in its history for 300,000 units. This win was
for a new and rapidly growing North American market. The Company expects to
derive most of its revenues from the GPS market and this new market during 2006.
Both of these markets are dynamic, early stage and rapidly growing and therefore
difficult to forecast in the near term.

The Company intends to consolidate production processes on the generation of
production equipment now installed at Sarantel. In this financial year, capacity
will be increased by adding to this existing set of production equipment. This
measured approach will enable the Company to improve productivity and ensure
that it can develop a scaleable platform for the future. The Company is
targeting year on year revenue growth in the 2006 financial year in excess of
that achieved in 2005.

*including a one-off charge of £0.3 million for additional depreciation arising
on a change in the estimated useful life of certain categories of fixed assets.

David Wither, Chief Executive Officer said:

'The Company has made enormous progress during the past year and the entire team
is working very hard to build a solid foundation for future growth. Demand in
our core GPS market remains robust and we expect strong growth to continue as we
enter a new and rapidly growing market in North America during this financial
year. I am confident that we are well on track to successfully execute the long
term strategy for the Company.'

For further information please contact:

Sarantel Group PLC                                              www.sarantel.com
David Wither, CEO/Sitkow Yeung, CFO                                 01933 670560
Smithfield                                                         020 7360 4900
Sara Musgrave
        
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About Sarantel

Sarantel designs, manufactures and sells patented, ceramic, filtering antennas
for use in portable wireless devices such as PDAs, laptops and 3G mobile
devices. Its current focus is on producing antennas for the GPS market, which
allow a clearer signal than conventional antennas whilst reducing the amount of
energy absorbed by the head by approximately 90 per cent. The antennas simplify
system design, thus allowing design standardisation and reduced time to market
and cost for manufacturers.

As well as GPS, Sarantel's antennas are designed to service Wi-Fi, 3G and
Bluetooth platforms that are expected to be a key element in the future success
of mobile network operators and device manufacturers. Sarantel's antennas can
significantly increase the range and effective bandwidth of Wi-Fi devices and
Sarantel is planning to commence high volume delivery of its antennas into the
satellite radio market within the next 12 months.

Sarantel listed on AIM, a market operated by the London Stock Exchange, on 2nd
March 2005 at an issue price of 82p. Sarantel is included in the IT Hardware
sector (93) within the Telecommunications equipment sub-sector (938) and has a
RIC code of SLG.L





                      This information is provided by RNS
            The company news service from the London Stock Exchange