Interim results for the six months to 31 March 2005

1
A new generation of filtering antennas for
wireless devices
Interim results for the six months to 31 March
2005
David Wither Chief Executive Officer Sitkow
Yeung Chief Financial Officer
2
Interim highlights

• Turnover increased by 268 to 1.0m (20040.3m)
• 325,000 units shipped (up 563 Y-O-Y)
• Operating loss before exceptional non-recurring
  costs of 2.4m (2004 1.9m)
• Loss before tax of 2.7m (2004 1.9m)
• Strong demand for Sarantels antennas continues
  to outstrip capacity
• - New equipment installed
• - Additional equipment ordered to further expand
  capacity
• Pipeline development for GPS and next generation
  market sectors on track
• TomTom now using Sarantels antenna in its GPS
  receiver
• Order book at 31 March 2005 over 2.0m, up 400
  year on year

3
AIM IPO highlights

• Admission to AIM completed 2 March 2005
• 21,951,220 ordinary shares placed at 82p with
  institutions (approx 42 of enlarged share
  capital)
• Raised 16.7m net of expenses
• Initial market cap of 43.0 million
• Reasons for and benefits of IPO
• To provide additional capital for future growth
• To position Sarantel as a major supplier of
  antenna technology
• To assist in recruiting and retaining staff
• To fund working capital
• To increase sales and marketing activities

4
Company Overview

• Sarantel manufactures revolutionary filtering
  antennas for wireless devices
• The antennas allow optimal network performance,
  with less interference
• Superior accuracy and reliability for GPS
• Easy to use omni directional
• Reduced radiation into the body

5
Profit and Loss Account
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Revenue growth
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Balance Sheet
8
Cash flow
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Operational Review

• Three new IP patent applications
• Commissioning almost complete with new equipment
• Design wins with a number of new customers
  including Taiwanese ODM
• TomTom now using Sarantels antenna in its GPS
  receiver
• World class team now in place to help transition
  Sarantel from a niche provider to a high volume
  supplier

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GPS The Core Market
The GPS market rapid growth and low penetration
rates (lt10)

• Sarantels Core GPS Markets
• PDAs Smartphones
• GPS-enabled mobile phones
• Recreational tracking devices
• Telematics asset tracking devices
• Key Features of Target Market Segments
• Hand-held
• Body-worn
• Small devices
• Mobile users
• Concealed installation
• High incumbent installation cost

Source PA Consulting, ABI Research, Company
Analysis

• Analysis
• SAM greatest in hand-held segments
• PDAs Smartphones will eat into telematics
  market
• Sarantel antenna offers great cost benefit in
  telematics segments

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Satellite Radio
Truly Portable Satellite Radio Products Sarantel
Holds the Key

• US Satellite Radio Market
• 2 players XM Satellite Radio (1) and Sirius
  (2)
• Both players exceeding subscriber forecasts
• Satellite radio handhelds a large, untapped
  opportunity
• Early (XM) product suffers from problems directly
  solved by Sarantel
• What Wins for Sarantel
• Hand and body effects on reception
• Reducing size of radio
• Filtering to increase signal actually received by
  radio
• Consistency of pattern and gain

Source XM and Sirius filings, Automotive News
and William Blair Company, L.L.C. estimates

• Analysis
• Expect both players to compete hard in handhelds
• High take-rate by dedicated consumers
• Opportunity to increase TAM in fixed mobile
  (e.g., automotive) applications
• DMB represents similar opportunity

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Outlook

• Strong order book for the remainder of the
  financial year
• - at 31 March 2005 over 2.0m, up 400 year
  on year
• Growth expected in target markets
• Strong demand for Sarantels antennas continues
  to outstrip capacity
• - New equipment installed
• - Additional equipment ordered to further expand
  capacity
• The Board looks to the future with confidence

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Appendix
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Technology Benefits Illustrated

• Small Near-Field Benefits
• Battery power consumption
• Ease of integration
• Low interference

• Antenna Types
• Conventional Patch, PIFA, Whip, Quadrifilar
  helix (air core)
• Sarantels filtering antenna

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Sarantels Patented Design
Dielectric Core
Helical Track
8
-
18mm
8
-
18mm
Balun
Feed
Feed
Cable
Cable

• 11 core patents with 200 international filings
• The depositing of a 3D pattern on a dielectric
  core
• The shape of the balun
• The helical track on the core
• The feed cable
• IP is within both design and production

This antenna could be to the 21st century what
the light bulb was to the 20th century Oliver
Leisten, founder of Sarantel Financial Times,
November 9, 2004
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Current Customer Applications

Savox GPS Accessory to Police Radio
Precisa GSM/GPS Phone
Laipac GPS/GSMSecurity Phone
SkyHawke Golf Range Finder
Forward Technology Sportsman Tracking Device
TomTom Mobile phone accessory
Stellus Systems GPS SDIO Card
Royaltek Windows-based GPS PDA
SysOnChip GPS Accessory
MiTAC Windows based GPS PDA
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50 Customers Partners Worldwide
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Potential Benefits - Lower SAR
Twisted loop antenna lowers energy absorbed by
the head by approx 90
SAR Specific absorption rate Published data plus
RFI Ltd Characterisation. IndexSAR supplied the
image
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Advantages for customers
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Advantages for end users
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Customer Quotes

• XMSR 
• 'The advantages of Sarantels antenna
  are compelling and they offer XMSR
  significant integration benefits which will
  help accelerate time-to-market for future
  products. We were also particularly impressed by
  the antennas performance when the portable radio
  was held close to the human body.
• Vice President, RF Systems, XM Satellite Radio
• Philips 
• 'Sarantel's antenna is ideal for small, handheld
  or body worn GPS applications where there is no
  room for a ground plane. It is also easier to inte
  grate than other solutions since no iterative
  fine-tuning of the layout is required and this
  helped us get results more quickly.
• Development Engineer, Philips
• Motorola
• 'Sarantel are very responsive to technical
  questions, good to work with on a technical level
  and they provide data that Motorola can trust -
  honest, good physics.'
• Engineering Director, Motorola

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Clear Competitive Differentiation
GPS
Satellite Radio
Wi-Fi/Bluetooth
Market
Examples of Competitors
Mobile voice
Fixed
Fixed
3G
Mobile
3G
Consumer handheld
Automotive
Consumer handheld
Automotive
Antenna Technology
Sarantels filtering antenna
-
Centurion
Whip
Garmin Murata Kyocera
Patch
Antenova Centurion Filtronic
PIFA
Applicable
Partially Applicable
Not Applicable

• Exploiting a new space for filtering antennas
• Poised for domination across emerging growth
  markets

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World Class Team