(TCM.L) Telit Communications PLC Buy/Sell

RNS Number : 2056I
  Telit Communications PLC
  08 March 2010
   

 PressRelease  8 March 2010

Telit Communications PLC

("Telit" or "the Company")

Preliminary Results for the year ended 31 December 2009 (unaudited)

Telit Returns to Strong Growth; H2 Revenues increase by 30%

Telit Communications PLC (AIM: TCM), a global leader in machine-to-machine (m2m) communications, announces its preliminary results for the year ended 31 December 2009.

Highlights

Financial

·     Revenue increased by 10.7% to EUR63.8 million (2008: EUR57.6 million, excluding non-recurring royalties of EUR1.5 million). 

·     Revenue in H2-2009 increased by 30% to EUR36.0 million (H1-2009: EUR27.8 million).

·     Gross profit increased by 11% to EUR30.6 million (2008: EUR27.6 million, excluding non-recurring royalties of EUR1.5 million)

·     Operating profit for the year (excluding one time compensation charges of EUR2.75 million) of EUR0.6 million  (2008: EUR0.6 million)

·     Adjusted EBITDA1 for the year EUR4.2 million (2008: EUR3.7 million)

·     Loss before tax of EUR2.9 million (2008: profit of EUR1.2 million)

·     Loss for the year of EUR3.0 million (2008: loss of EUR3.2 million)

_____________________

1         Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization and share
            based payments from continuing operations and, for 2009 only, expenses related to manufacture
            restructuring costs.

Operational

·     Accelerated growth of Telit's Americas and APAC regions increases Telit's diversification.

·     The transfer of the manufacturing of Telit's products to China was substantially completed at the end of the year.

·     The Company continued its penetration of the automotive sector by entering into agreements with Magneti Marelli (Italy), a leading global supplier in the sector; with MetaSystem (Italy) and with Positron (Brazil), a PST Electronics company.

·     The Company entered into a strategic collaboration agreement with Deutsche Telekom and T-Mobile which will see the three companies working closely together, worldwide, on sales and marketing in their target markets and to jointly develop innovative M2M products and services in the future.

Services and Products

·     Launched INFINITA Services offering with Premium FOTA and extended Hardware warranty

·     Presented new Short-Range product series and the smallest GSM/GPRS m2m module in the world

·     Presented extremely powerful and cost-effective GPS module SE867-AGPS

Commenting on the results, Oozi Cats, Chief Executive, said: "2009 has been a supremely challenging year for the global economy in general, and Telit's market, the machine to machine industry, in particular. Despite the difficulties, Telit continued its acquisition of market share and trend of year-on-year revenue growth, albeit at a slower pace than in previous years but with the pace picking up in H2-2009, showing an increase of 30% over H1-2009. We successfully transferred our production to China in order to increase efficiency and are confident in our ability to continue our leading performance in the m2m industry and increase our rate of growth in 2010. Telit has emerged from the turmoil of 2009 as a much stronger company, ready to continue its ascent in its markets".

For further information:
 Telit Communications PLC             Tel: +39 06 42046020
 Oozi Cats, CEO                                           
 Oozicats@telit.com 
                                                          
 Yariv Dafna, CFO
 Yariv@telit.com
  
  
                                                          

Astaire Securities Plc, Nomad & Broker                    Tel: +44 (0) 20 7448 4400

Shane Gallwey / Sebastian Wykeham

Chairman's statement

2009 has been a very challenging year for the global economy, and the m2m market was no exception. We focused this year on continued revenue growth, while trying to minimize operating costs. In 2009 we did incur substantial costs in connection with the transfer of the manufacturing of our products to our new manufacturing partner in China, and this is reflected in our results for the year. These expenses were an investment facilitating the achievement of our goal of decreasing manufacturing costs and we believe that the long term return on this investment will be substantial and will cement Telit's position as a market leader in the m2m arena. 

Results

·        Revenues for the year increased by 10.7% to EUR63.8 million (2008: EUR57.6 million, excluding non-recurring royalties of EUR1.5 million received in 2008). After a slow start to the year, H2 revenues increased 30% to EUR36.0 million over the EUR27.8 million revenues in H1.

·        Gross profit increased by 11% to EUR30.6 million (2008: EUR27.6 million excluding non-recurring royalties of EUR1.5 million). 

·        Other income decreased to EUR0.05 million (2008: EUR1.0 million). This is due to a delay in obtaining the necessary approvals for the recognition of EUR0.8 million in relation to governmental grants in Italy. The grants had initially been expected to be recognised in 2009 but this was delayed due to external reasons which are not under the Company's control.

·        Research & Development expenses (EUR10.9 million during the year), as a percentage of revenues, increased slightly to 17.0% (2008: 16.3%, EUR9.6 million).

·        Sales & Marketing expenses (EUR11.1 million during the year), as a percentage of revenues, decreased to 17.4% (2008: 18.3%, EUR10.8 million).

·        General & Administrative expenses (EUR8.1 million during the year), as a percentage of revenues, decreased to 12.7% (2008: 15.3%, EUR9.0 million).

·        Operating profit for the year, excluding one-time charges of EUR2.75 million in connection with the transfer of manufacturing to China, EUR0.6 million (2008: EUR0.6 million). 

·        Adjusted EBITDA increased to EUR4.2 million (2008: EUR3.7 million).

Trading

In spite of the global economic crisis, Telit continued to increase its revenues.  This was achieved in a period when the m2m market did not grow at all, with certain segments even contracting. The weakness in the European market was more than compensated for by the strong growth in the Americas and APAC regions, resulting in an increasingly diversified geographical split of our revenues, as follows:
                2009 (MEUR)  % of Total Revenue  2008 (MEUR)  % of Total Revenue
 EMEA              38.5            60.3%            44.2            74.8%
 APAC              15.1            23.7%             9.6            16.2%
 AMERICAS          10.2            16.0%             5.3             9.0%
 Total Revenue     63.8             100%            59.1             100%

The Group's natural hedging reduces the impact of currency fluctuations; 37% of Telit's revenue in 2009 was generated in Euro, with the remaining 63% generated in, or linked to, other currencies (mainly US dollar and Korean Won), with a substantial part of the Company's material purchases materials denominated in those currencies. 

Cash

The Group continues to use cash in its operating activities, investing heavily in R&D and S&M. Despite this, the Group's net debt position at the end of 2009 improved to EUR7.2 million (2008: net debt of EUR11.9 million) due the successful placing of 28 million shares in August and December 2009 for a gross consideration of £5.7 million.

Outlook

The outlook for the rest of 2010 and beyond looks promising for Telit. We believe we are well positioned to take advantage of the opportunities ahead with the heavy investments made during the year in R&D and in the transfer of the manufacturing of our products to China. This will enable us to maintain our gross profitability in spite of the erosion in the average sale price. We are confident in our ability to maintain and enhance our strong position within our industry as we did in 2009 and look forward to continue business expansion. 

I would like to thank the company's management team and employees across the globe for their commitment to the company and its success. Their dedication is an invaluable asset, and core strength of the company.

Enrico Testa

Chairman 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

                                                       2009        2008
                                                                     
                                                     EUR'000     EUR'000

 Revenue                                                63,761      59,083
 Cost of sales                                        (33,129)    (29,987)

 Gross profit                                           30,632      29,096

 Other income                                               49       1,002
 Research and development expenses                    (10,866)     (9,647)
 Selling and marketing expenses                       (11,137)    (10,829)
 General and administrative expenses                   (8,105)     (9,058)
 Other expenses                                        (2,750)           -

 Operating profit (loss)                               (2,177)         564

 Investment income                                          85         192
 Finance costs                                           (857)     (1,171)
 Share of results of associated undertakings                 -         18 
 Gain on deemed partial disposal of subsidiary               -       1,614

 Profit (loss) before income taxes                     (2,949)       1,217

 Income taxes                                             (81)     (2,586)

  Loss for the year from continuing operations         (3,030)     (1,369)

 Loss for the year from discontinued operations              -     (1,864)

 Loss for the year                                     (3,030)     (3,233)

 Other comprehensive income                                               
 Translation adjustments                                 (140)     (1,904)

 Total comprehensive income for the period             (3,170)     (5,137)

 Attributable to:
 Equity shareholders of the parent                     (3,466)     (3,052)
 Minority interests                                        436       (181)
                                                       (3,030)     (3,233)
 Basic loss per share (in euro cents)
 From continuing operations                              (7.6)       (2.7)
 From discontinued operations                                -       (4.3)
 Total continuing and discontinued                       (7.6)       (7.0)

 Diluted loss per share (in euro cents)
 From continuing operations                              (7.6)       (2.7)
 From discontinued operations                                -       (4.3)
 Total continuing and discontinued                       (7.6)       (7.0)
                                                    45,608,802  43,430,948
 Weighted average number of equity shares in issue

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited)

                                                       2009      2008
                                                                   
                                                     EUR'000   EUR'000
 ASSETS
 Non-current assets
 Intangible assets                                      8,819     9,883
 Property, plant and equipment                          3,294     3,779
 Investments in associated undertakings                   605       629
 Other investments                                      1,570     1,570
 Other long term assets                                   393     3,437
 Deferred tax asset                                       316       548
                                                       14,997    19,846

 Current assets
 Inventories                                            6,021    10,750
 Trade receivables                                     21,676    14,575
 Other current assets                                   5,554     4,799
 Deposits - restricted cash                             5,500     6,000
 Cash and cash equivalents                              7,898     4,619
                                                       46,649    40,743

 Total assets                                          61,646    60,589

 LIABILITIES AND SHAREHOLDERS' EQUITY
 Shareholders' equity
 Share capital                                            956       644
 Share premium account                                 36,043    30,188
 Other reserve                                          (260)     (260)
 Translation reserve                                  (3,604)   (3,464)
 Retained earnings                                   (18,207)  (15,143)
 Total shareholders' equity                            14,928    11,965

 Minority interests                                     1,115        77
 Total equity                                          16,043    12,042

 Non-current liabilities
 Other loans                                            3,150     3,531
 Post-employment benefits                               2,030     1,807
 Deferred tax liabilities                                  69       245
 Provisions                                               832       748
 Other long-term liabilities                              221       119
                                                        6,302     6,450

 Current liabilities
 Short-term borrowings from banks and other lenders    17,469    19,026
 Trade payables                                        18,026    11,140
 Other current liabilities                              3,806    11,931
                                                       39,301    42,097

 Total equityandliabilities                            61,646    60,589

CONSOLIDATED CASH FLOW STATEMENT (Unaudited)

                                                              2009      2008
                                                                          
                                                             EUR'000  EUR'000
 CASH FLOWS - OPERATING ACTIVITIES
 Net cash from (used in) continuing operations                 1,913   (6,735)
 Net cash used in discontinued operations                          -   (1,441)
 Net cash from (used in) from operating activities             1,913  (8,176)*

 CASH FLOWS - INVESTING ACTIVITIES
 Purchase of property, plant and equipment                     (940)   (1,732)
 Proceed from disposal of property, plant and equipment           50        46
 Decrease in restricted cash deposits                            500         -
 Purchase of intangible assets                               (3,182)   (4,888)
 Grant contribution towards intangible assets                     49     2,606
 Acquisition of subsidiaries ( net of EUR9,000 cash                -      (15)
 acquired)
 Net proceeds from issuance of share capital in a                  -     7,000
 subsidiary to third party
 Net cash (used in) from investing activities                (3,523)     3,017

 CASH FLOWS - FINANCING ACTIVITIES

 Short-term borrowings from banks and others                 (1,010)       757
 Preferential rate loan                                            -     3,909
 Repayment of long term loans                                  (381)         -
 Net proceeds from issuance of share capital                   6,167         -
 Net cash from financing activities                            4,776     4,666

 (Decrease) / increase in cash and cash equivalents            3,166     (493)

 Cash and cash equivalents - balance at beginning of year      4,619     5,212

 Effect of exchange rate differences                             113     (100)

 Cash and cash equivalents - balance at end of year            7,898     4,619

 Supplemental disclosure of cash flow information     
 (included in cash flow from (used in) operating
 activities):
 Interest paid                                                   857       988
 Interest received                                                85       177
 Income taxes paid                                                29        92

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited)

Year ended 31 December 2009

                                                       Share capital  Share premium  Other reserve  Translation adjustment  Retained earnings   Total   Minority interest   Total
                                                                         account
                                                          EUR'000        EUR'000        EUR'000            EUR'000               EUR'000       EUR'000       EUR'000       EUR'000

 1 January 2009                                                  644         30,188          (260)                 (3,464)           (15,143)   11,965                 77   12,042

 Comprehensive income for the period
 Loss for the year                                                                                                               (3,466)       (3,466)         436         (3,030)
 Other comprehensive income
 Translation adjustment                                                                                              (140)                       (140)                183       43
 Total comprehensive income for the period                                                                           (140)            (3,466)  (3,606)                619  (2,987)
 Transaction with owners, recorded directly in equity
 Issuance of shares                                              312          5,855                                                              6,167                       6,167
 Share-based payment charge                                                                                                               402      402                         402
 Arising on deemed disposal - minority in Telit                                                                                                                       419      419
 Wireless Solutions Srl
 Total transaction with owners                                 312        5,855                                                           402   6,569                 419   6,988
                                                                                                                                                                                  
 31 December 2009                                                956         36,043          (260)                 (3,604)           (18,207)   14,928              1,115   16,043
                                                                                                                                                                                  
                                                                                                                                                                                  

Year ended 31 December 2008

                                 Share capital  Share premium  Other reserve      Translation       Retained earnings   Total   Minority interest   Total
                                                   account                         adjustment
                                    EUR'000        EUR'000        EUR'000           EUR'000              EUR'000       EUR'000       EUR'000       EUR'000

 1 January 2008                            627         29,651          (260)               (1,734)           (12,512)   15,772                605   16,377

 Comprehensive income for the
 period
 Loss for the year                                                                                            (3,052)  (3,052)              (181)  (3,233)
 Other comprehensive income
 Translation adjustment                                                                    (1,730)                     (1,730)              (174)  (1,904)
 Total comprehensive income for                                                            (1,730)            (3,052)  (4,782)              (355)  (5,137)
 the period
 Transaction with owners,
 recorded directly in equity
 Issuance of shares                         17            537                                                              554                         554
 Share-based payment charge                                                                                       421      421                 15      436
 Arising on deemed disposal -                                                                                                               (188)    (188)
 minority in Telit Wireless
 Solutions Srl
 Total transactions with owners             17            537                                                     421      975              (173)      802

 31 December 2008                          644         30,188          (260)               (3,464)           (15,143)   11,965                 77   12,042

NOTES TO THE UNAUDITED PRELIMINARY ANNOUNCEMENT

1.      While the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union, this announcement does not itself contain sufficient information to comply with IFRSs. The Company expects to publish full financial statements that comply with IFRSs by April 2010. The financial information included in this preliminary announcement has been prepared with consistent accounting policies to those set out in the Group's 2008 published financial statements.

2.      The financial information set out in the announcement does not constitute the company's statutory accounts for the years ended 31 December 2009 or 2008. The financial information for the year ended 31 December 2008 is derived from the statutory accounts for that year, which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under s. 237(2) or (3) Companies Act 1985. The auditors have not reported on the financial information as at and for the year ended 31 December 2009 and as such the information set out herein is unaudited.

3.      The Group meets its day to day working capital requirements through overdraft facilities, invoice advance facilities and factoring. In the main, these facilities are cancellable on demand or have renewal dates within one year of the date of approval of the financial statements. In addition, the Group has received a long-term preferential rate loan. Further information on the Group's borrowings is provided in note 7. The current economic conditions create uncertainty particularly over (a) the level of demand for the Group's products which may also affect the possibility of utilising some of these facilities since they depend upon the level of sales in specific markets and in some instances to specific customers; (b) the exchange rate between Euro and U.S. dollars and thus the consequence for the cost of the Group's raw materials; (c) the availability of bank finance in the foreseeable future; (d) the continuity of supply from key suppliers; and (e) the uncertainty over forecasts in current market environments.

The Group's forecasts and projections, taking account of the fact that there has been a loss for the year from continuing operations, of the general economic environment and impact on specific markets supplied, reasonably possible changes in trading performance, the Group's history of successfully renewing its facilities in the past and the fact that there are actions available to the Group to address risks, show that the Group should be able to operate within the level of its current facilities. The Group will open renewal negotiations with the banks in due course and has at this stage not sought any evidence that the facilities will not be renewed. The Group has held discussion with its bankers about its future borrowing needs and no matters have been drawn to its attention to suggest that renewal may not be forthcoming on acceptable terms.

After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the accompanying financial information.

4.   Revenue
                              2009     2008
                             EUR'000  EUR'000

 Sales of goods               63,761   57,426
 Licence and royalty income        -    1,657
 Revenue                      63,761   59,083

 Investment income                85      192
 Continuing operations        63,846   59,275

 Discontinued operations           -    1,288
                              63,846   60,563

5.      During July 2009 the Company signed an agreement with BAMES in order to convert the agreement with SEM, a leading global electronics service provider, (the Vimercate, Milan based manufacturing arm of BAMES), to be non-exclusive. 

The agreement provided for SEM to produce all of Telit's m2m modules (with some exceptions) for a five year period starting from March 12, 2007. As a result of the cancellation of the exclusivity, SEM is entitled to a compensation of EUR2.75-3.50 million to be settled by set-off against the receivable balance Telit has from the license agreement entered into by the parties in December 2008. In addition, manufacturing costs will remain fixed through the end of the year. Telit and SEM will continue to cooperate in various projects and SEM will continue to provide specific manufacturing services to Telit, such as manufacturing of prototypes, on a nonexclusive basis.

6.      The Group is currently the subject of ongoing tax audits in respect of tax returns made in certain jurisdictions. The calculation of the Group's charges to taxation, including income tax, employment tax, sales taxes and other taxes involves the exercise of judgement in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through a formal legal process. The probable outcome of the tax audits has been considered in determining the appropriate level of provision for such taxes. The final resolution of some of these items may give rise to material profit and loss and/or cash flow variances.

7.      Reconciliation of operating profit to EBITDA and Adjusted EBITDA

                                2009     2008
                              EUR '000  EUR'000

 Operating profit (loss)       (2,177)      564
 Depreciation & amortization     3,259    2,673
 EBITDA                          1,082    3,237
 Share-based payments              402      436
 Other expenses (*)              2,750        -
 Adjusted EBITDA                 4,234    3,673

(*) See note 5.

8.      Net Debt position
                               2009     2008
                             EUR '000  EUR'000

 Current borrowings (1)        17,469   19,026
 Non-current borrowings (2)     3,150    3,531
 Cash and cash equivalents    (7,898)  (4,619)
 Restricted cash deposits     (5,500)  (6,000)
 Total                          7,221   11,938

(1)  Included within current borrowings are:

-   The short-term element of the preferential rate loan from the Ministry of Trade and Commerce in Italy, amounting to EUR0.4 million.

-   A drawn amount of EUR5.2 million on a loan. The interest rate on this short-term bank loan is Euribor plus 2.325% per annum. The short-term bank loan is a bridging loan in advance of funds to be received from a grant from the Italian government to Telit Italy to support a development project in Sardinia which was successfully completed on December 31, 2009. Management believes the availability of this facility will be extended until the final payment from the Italian government, subject to satisfaction of the lending bank that the Group has met certain qualifying expenditure targets with regard to its research and development project.

-   Bank overdrafts of EUR2.8 million. The overdraft facilities, which are available up to EUR5.5 million, is cancellable on demand but is without a fixed renewal date.  

-   Drawn letters of credit and borrowings arising from invoice advances totaling EUR7.5 million

-   Factoring facilities against qualifying receivables totaling EUR1.6 million. These borrowings are secured against the factored receivables and are with recourse to the company in the event that the receivables are not collected. 

(2)  The EUR3.15 million represents the long-term element of a preferential rate loan from the Ministry of Trade and Commerce in Italy of EUR3.9 million provided in connection with the Group's business development program in Sardinia. The loan attracts interest at a rate of 0.75% and is repayable in ten annual installments commenced on 20 March 2009.

The Directors believe, based on the past performance of the relevant subsidiaries and the history of the relationships with the lending banks, that the credit facilities will remain available to the Group in the foreseeable future and that therefore the Group will be able to continue to fund its operations from these credit facilities.

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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RNS Number : 8447G Telit Communications PLC 09 February 2010

TELIT COMMUNICATIONS PLC

("Telit" or the "Company")

Trading update and Notice of Results

The Board of Telit (AIM: TCM), the global wireless communications developer and distributor, is happy to announce a trading update ahead of its preliminary results for the year ended 31 December 2009.

The Company expects that unaudited revenues for the twelve months ended 31 December 2009 will be in line with market expectations at approximately EUR63 million, or 7% above 2008 revenues.

Telit expects to release its preliminary results for the twelve months ended 31 December 2009 on or about 2 March 2010.

For further information please visit www.telit.com or contact:

Telit Communications Plc Tel: +972 3791 4040

Michael Galai, General Counsel & Finance Director michaelg@telit.com

Astaire Securities Plc, Nomad & Broker Tel: +44 20 7448 4400

Shane Gallwey / Sebastian Wykeham

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

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RNS Number : 4274G Telit Communications PLC 01 February 2010

Telit Communications Plc

("Telit Communications" or the "Company")

Deutsche Telekom, T-Mobile and Telit sign global agreement to work together in the growing M2M market

Deutsche Telekom AG, T-Mobile GmbH and Telit Communications PLC have signed a strategic collaboration agreement which will see the three companies working together, worldwide. Telit ranks among the leading providers of technologies for mobile machine-to-machine (M2M) communication. The partners in the venture will be working closely together on sales and marketing in their target markets and plan to jointly develop innovative M2M products and services in the future. Customers will benefit from integrated solutions for the networking of vehicles, machines, measurement and control modules and other objects, as well as a comprehensive range of customised services.

"As the operator of an extensive, mature mobile phone network, the M2M market offers us enormous potential for growth," says Mark B? head of business development for corporate clients at T-Mobile Deutschland. "For an especially innovative M2M supplier like T-Mobile, partnering with Telit will enable us to exploit this potential even further and lastingly expand our customer base. Telit understands what users need and therefore represents an important partner for us."

Dominikus Hierl, Managing Director Strategic Accounts & Corporate Business Development at Telit Communications PLC, adds: "A leader in innovation in the world of M2M, Telit is pursuing a strategy that involves offering its customers the highest levels of quality, long-term solutions and comprehensive, individual customer support. We are moving in the same direction as Deutsche Telekom and T-Mobile. This strategic collaboration agreement provides us with the perfect foundations on which to develop new customer segments and innovative M2M solutions and services."

Deutsche Telekom, T-Mobile and Telit will be pooling their expertise based on the terms of a memorandum of understanding. The clear objective in doing so will be to develop each of the partners' positions in the growing market for M2M solutions, internationally. The agreement covers the areas of product development - including the simplification and standardisation of products - sales and marketing. In particular, the companies plan to identify relevant target markets in the telematics, fleet management, navigation, smart metering (remote metering), vending machine and security segments. T-Mobile and Telit will be looking to work closely together in developing and marketing innovative M2M solutions.

Telit Communications PLC Alexander Bufalino VP Global Marketing Wireless Solutions Telit Communications PLC Via San Nicola da Tolentino 1/5 00187 Rome - Italy Tel.: 0049-160-96 00 46 13 Tel.: 0039-335-87 45 345 E-Mail:alexander.bufalino@telit.com Veronika Ott / Jens Bohl Maisberger GmbH Kirchenstrasse 15 81675 Munich Tel.: 0049-89-41 95 99 -51 / -88 Fax: 0049-89-41 95 99 12 E-Mail:telit@maisberger.com

Astaire Securities Plc, Nominated Adviser Shane Gallwey / Stuart Lane

Deutsche Telekom AG Corporate Communications
Tel.: +49 (0)228 181 4949
E-mail: presse@telekom.de

Further information for journalists:www.telekom.com/presse

About Deutsche Telekom AG

With over 150 million mobile phone customers, plus around 39 million landline and approximately 17 million broadband connections (as of 30 September 2009), Deutsche Telekom ranks among the leading integrated telecommunications companies worldwide. Its product range includes T-Home (landline telephony, broadband Internet), T-Mobile (mobile phones) and T-Systems (ICT solutions). An international company with a presence in around 50 countries and approximately 260,000 employees worldwide (as of 30 September 2009), Deutsche Telekom derives more than half of its revenues, which totalled 61.6 billion Euros in 2008, from outside Germany.

For further information, please visit: www.telekom.com

About Telit

Telit Wireless Solutions is an internationally leading specialist in wireless machine-to-machine (M2M) technology. Telit is the only company worldwide to offer communications modules for all of the various wireless technologies: it develops, produces and markets modules for GSM/GPRS, UMTS/WEDGE/HSDPA, CDMA/EVDO and Short-Range RF applications. M2M applications rationalise business processes by enabling machines, equipment and vehicles to communicate with each other via mobile networks.

Telit products are used all over the world and marketed via Telit's offices in Brazil, China, Denmark, France, Germany, Israel, Italy, Korea, Spain, the Republic of South Africa, Taiwan, Turkey, the UK and the USA. Telit's global distributor network comprises specialists in wireless technologies and enhances the customer experience in over 56 countries worldwide. Telit Communications PLC is listed on AIM (ticker: TCM).

Further information about Telit and its products can be found at www.telit.com.

Stay up to date with the latest news from Telit Wireless Solutions on twitter (Telit_WS) and Facebook!

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

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RNS Number : 1358G Telit Communications PLC 26 January 2010

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying TELIT
issuer of existing shares to which voting rights COMMUNICATIONS PLC

are attached:

2 Reason for the notification (please tick the appropriate box or boxes): An acquisition or disposal of voting rights An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments An event changing the breakdown of voting rights
Initial Disclosure X

Other (please specify):

3. Full name of person(s) subject to the RATHBONE BROTHERS PLC

notification obligation:

4. Full name of shareholder(s) (if RATHBONE BROTHERS PLC
different from 3.): Rathbone Unit Trust Management Ltd
5. Date of the transaction and date on 18TH DECEMBER 2009

which the threshold is crossed or reached:

6. Date on which issuer notified: 19TH JANUARY 2010
7. Threshold(s) that is/are crossed or 5%

reached:

8. Notified details: A: Voting rights attached to shares

Class/type of Situation previous Resulting situation after the triggering transaction
shares to the triggering
transaction

if possible using the ISIN CODE
Number Number Number Number of voting % of voting rights
of of of shares rights
Shares Voting
Rights
Direct Direct Indirect Direct Indirect
ORDINARY 1P 2,000,000 2,000,000 N/A N/A 3,900,000 N/A 5.38%

B: Qualifying Financial Instruments Resulting situation after the triggering transaction

Type of financial Expiration Exercise/ Number of voting % of voting
instrument date Conversion rights that may be rights
Period acquired if the
instrument is
exercised/
converted.

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments Resulting situation after the triggering transaction

Type of financial Exercise Expiration Exercise/ Number of voting % of voting rights
instrument price date Conversion rights instrument
period refers to
N/A N/A N/A N/A N/A Nominal Delta

Total (A+B+C)

Number of voting rights Percentage of voting rights
3,900,000 5.38%

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable: RATHBONE BROTHERS PLC*
Rathbone Unit Trust Management Limited 5.38%

*Rathbone Brothers Plc is the holding company of the following

Proxy Voting:

10. Name of the proxy holder:

11. Number of voting rights proxy holder will cease to hold:

12. Date on which proxy holder will cease to hold voting rights:

13. Additional information: Total shares in issued used a denominator is
72,514,281
14. Contact name: COMPLIANCE DEPARTMENT
15. Contact telephone number: 020 7399 0000

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

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