Trading Statement

Sarantel Group PLC
05 October 2006

Embargoed until 7am                                             05 October 2006

                        Sarantel Group PLC ('Sarantel')

                            Year End Trading Update

Sarantel, the leading manufacturer and supplier of filtering antennas for
wireless devices, today provides a trading update for its financial year ended
30 September 2006. Full details of the Preliminary results will be announced on
Tuesday 28 November 2006.

Revenues for the full year are expected to be not less than £4m (2005: £2.8m),
an increase of 43% over the previous year. As announced on 20 July 2006, demand
for Sarantel's satellite radio antennas has been below previous expectations,
adversely impacting revenue.

However, as also previously stated, Sarantel has received initial production
orders for its new GPS antenna from two major electronic companies. We are
delighted to announce that Hewlett Packard (HP) is one of those electronic
companies, having selected Sarantel's GPS antenna for their recently launched
iPAQ rx5000 Travel Companion series. This is a significant win for Sarantel and
clearly demonstrates how its antenna technology can provide unrivalled
performance, which enables its customers to develop clearly differentiated hand
portable products.

As of 30 September 2006 the company had cash balances of £5m of which £1.3m is
committed to secure asset financing obligations. On 20 July 2006 the company
announced that it was reviewing its cost base. As a result, the company is
restructuring the organization to bring costs in line with the current level of
demand. A consultation process to reduce staffing levels has begun and the
process will be completed by the end of November. A further update will be given
in due course.

These measures, together with the successful completion of the capacity
expansion programme, will significantly reduce Sarantel's monthly cash
utilisation rate in 2007.


For further information please contact:

Sarantel Group PLC                                        01933 670560
Geoff Shingles, Chairman / David Wither, CEO              www.sarantel.com

Ambrian Partners                                          020 7776 6410
Tim Goodman

Smithfield                                                020 7360 4900
Sara Musgrave/Tania Wild


Notes to Editors

About Sarantel:

Sarantel designs, manufactures and sells patented, ceramic, filtering antennas
for use in portable wireless devices. These antennas allow a clearer signal than
conventional antennas whilst reducing the amount of energy absorbed by the body
by approximately 90 per cent. They also simplify system design, thus allowing
design standardisation and reduced time to market and cost for manufacturers.
Sarantel's antennas significantly improve the performance of wireless systems by
increasing their range and effective bandwidth.

The company supplies antennas to the Global Positioning Satellite (GPS) market
and the North American satellite radio market and Sarantel's antennas have been
successfully designed into Personal Navigation Devices (PNDs), laptops and
Personal Digital Assistants (PDAs). Sarantel's antenna technology is also
capable of servicing multiple high volume markets such as wi-fi, 3G and
Bluetooth.

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




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