Acquisition

RNS Number:1711O
Ultra Electronics Holdings PLC
31 July 2003



Embargoed until 0700                                 31 July 2003



                         Ultra Electronics Holdings plc
                            ("Ultra" or "the Group")


                Ultra Acquires Radamec Defence Systems for #6.0m



Ultra announces that it has agreed to acquire Radamec Defence Systems Limited
(RDS) for a cash consideration of #6.0m.  RDS is a wholly owned subsidiary of
Radamec Group plc, whose shares are traded on AIM.



RDS is a business employing approximately 70 people in Chertsey, Surrey.  The
company supplies electro optical surveillance, target tracking and weapon
control systems.  RDS also provides stabilised platforms and high performance
military cameras, thermal imagers and laser range finders.  The company has
contracts to supply its specialist equipment for the UK Navy's new Type 45
destroyer, for the UK Army's new Battle Group Thermal Imager and for a number of
export programmes.



RDS has strong synergies with Ultra's existing command and control, surveillance
and radar capabilities including SML Technologies (SML), the acquisition
announced by the Group on 2 July 2003.  RDS will become part of Ultra's
Information & Power Systems division and the intention is to relocate the
business to Ultra's existing site at Loudwater, Buckinghamshire before the end
of 2003.



The acquisition of RDS will be financed using Ultra's existing facilities.  RDS
made a loss of #0.4m in 2002 on sales of #3.9m but is expected to increase sales
to more than #6.0m in calendar year 2003 with an operating profit of
approximately #1.0m.  This excludes the cost of relocation which is anticipated
to be about #1.0m but which is expected to yield annual savings in excess of
#0.5m.  The order book at the end of June was #12.7m.



Dr Julian Blogh, Chief Executive, Ultra Electronics, commented:



"I am very pleased that we have agreed the acquisition of RDS, a company that
has an excellent position in the growing defence electronics market.  Ultra,
with recently acquired SML and now with RDS, can offer a comprehensive range of
surveillance and target tracking solutions."



                                    - Ends -


Enquiries:
Ultra Electronics Holdings plc                                     020 8813 4321
Dr Julian Blogh, Chief Executive                       www.ultra-electronics.com
                                                       [e-mail]


Weber Shandwick Square Mile                                        020 7067 0700
Susanne Walker



Notes to Editors:

Ultra Electronics is a group of specialist businesses designing, manufacturing
and supporting electronic and electromechanical systems, sub-systems and
products for aircraft, ships, submarines, armoured vehicles, airports and
transport systems worldwide.  The Group, which employs 2,600 people in the UK
and North America, focuses on high integrity sensing, control, communication and
display systems with an emphasis on integrated Information Technology solutions.



The Group concentrates on obtaining a technological edge in niche markets, with
many of its products and technologies being market leaders in their field.
Ultra has an increasing role of supporting prime contractors by undertaking
specialist system and sub-system integration using the combined expertise of the
Group businesses.



Ultra is organised into three divisions as follows:

Tactical & Sonar Systems including secure tactical line-of-sight radio systems,
multiplexers and switches; tactical datalinks; cryptographic equipment; active,
passive and multi-static sonobuoys; sonobuoy receivers and processors;
distributed surveillance sensor arrays; ship's sonar systems and ship's torpedo
defence systems



Aircraft & Vehicle Systems including miniature airborne compressors; high
integrity software and systems; aircraft system electronics; aircraft noise and
vibration control; propeller de-icing, balancing and control systems; armoured
vehicle electronic information and control systems, human/computer interface
equipment and shared working environment solutions.



Information & Power Systems including command and control systems equipment;
weapons interfacing electronics; coastal surveillance systems; naval data
processing and distribution; airport and airline information management systems;
passenger baggage reconciliation systems; ID card systems; naval power
conversion; signature management of naval vessels; transit system power
conversion and control.




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

ACQWUUBCMUPWUQG