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CEO Statement, July 2010

This past year, virtually all areas of the economy were in the grip of a recession, with the m2m sector also facing major challenges. In contrast to the steady growth of previous years, the overall market experienced growth in terms of units shipped, but a decline in average sales price led to an effective shrinkage in the market in 2009 to around € 500 million – from € 750 million in 2007.
On the other hand, this decline in average sales price has created a strong surge in new designs, as m2m comes more within reach of new participants. Telit is engaged in over 2,000 discussions, design-wins and design-ins. We estimate our success rate at as much as 25% of all new designs over the last few years.
As a lean and extremely focused m2m wireless solution provider, Telit was able to leverage all its opportunities and to increase market share from 10% in 2008 to almost 13% in 2009. As in recent years, Telit recorded positive growth in terms of both value and volume. Compared to € 59 million in 2008, turnover increased by 8.5% to € 64 million in 2009, and revenues grew at 23% from 2007. Market share doubled against a market contraction of 33%, and for 2010 we expect continued increase to € 79 million.
Despite the global economic crisis, Telit was the most successful company in its segment in 2009. The fourth quarter, in particular, saw record sales and was the best in the company’s history.

Our goal: Building a high margin and recurring revenue business, to guarantee not only products with highest quality and best service to our customers, but also a solid and long-lasting partnership.
Telit has prepared for the future in all best possible ways. With a product range covering cellular as well as short range technologies and a highly qualified workforce, Telit is able to meet squarely all of the m2m market requirements and to leverage all opportunities of a market expected to grow at 20% - 30% per year thru 2013.

Oozi Cats
Telit Communications PLC, Chief Executive Officer
July 2010