For immediate release                                                                                  11 September 2009

INTELEK plc

AGM TRADING UPDATE

At the AGM, due to be held today at 11.30 am, the Chairman, David Bramwell, will make the following statement on current trading:

"In our preliminary results announcement, released to the market on 9 June 2009, we indicated that we were experiencing some softening in our commercial markets and expected a slow start to the year.  I am pleased to report that various contract wins and opportunities currently being addressed have given us more confidence in a stronger trading performance in the second half of the year.  This is supported by the increasing contribution of government programmes and important new product releases.

Paradise Datacom, as previously announced, started the year slowly.  Commercial markets remain weak and consequently we are more dependent on high value government contracts in the current year. We have continued to supply a major government multi-year retrofit programme for transportable earth stations through the first half of this year.  Encouragingly, we are bidding on a number of other large government programmes which, when combined with the release of our new bandwidth saving modem in September, should provide a boost to our sales in the second half.

Trading at Labtech Microwave is in line with last year. There has been a continued build up of military business and a recent surge in short-term demand for the new generation of high specification telecoms’ products.  With some strong months of order intake, particularly in the phased array and air traffic control radar markets, the first five months of the year recorded order intake some 15% ahead of deliveries for the same period.  We expect to see a continuing improvement at Labtech through the remainder of the year.

As mentioned in the preliminary announcement, CML has faced a number of challenges due to the sharp downturn in the corporate jet market.  Management took early action and significant cost reductions were introduced in April this year. The Airbus programmes are holding up well and our plans to enhance the capacity of our Composites division continue to progress, with our long-term confidence supported by our continued participation in the Joint Strike Fighter (JSF) programme.  Despite an encouraging recovery in the second quarter, CML’s overall performance is still expected to be substantially lower than last year.

Our expectations for the current year are much the same as they were at the time of the publication of the preliminary announcement.  The increased visibility of Paradise Datacom’s major defence and security industry opportunities, the introduction of new products, the strengthening of the order book at Labtech, and the stabilisation of CML’s programmes, give us confidence for the second half.  However, there will be a reduction in our forecast dollar exchange rate compared with that of early June.  Overall, we are still anticipating a resilient performance in the current year."              

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