Placing and Admission to AIM

1
A new generation of filtering antennas for
wireless devices
Placing and Admission to AIM
February 2005 www.sarantel.com
2
Disclaimer
This presentation is issued by Sarantel Group plc
(the Company) in connection with the proposed
placing of ordinary shares in the capital of the
Company and the proposed application for
admission of the whole of the ordinary share
capital of the Company, issued and to be issued,
to trading on the Alternative Investment Market
of London Stock Exchange plc. The information in
this presentation, which is for background
purposes only, is preliminary in nature and is
subject to change.   This presentation is only
directed to persons believed by the Company to be
investment professionals as defined in Article 19
of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2001, high net worth
companies or unincorporated associations as
defined in Article 49 of that Order and to others
to whom it can lawfully be distributed, whether
inside or outside the United Kingdom, without
approval by an authorised person.   This
presentation should not be distributed by
recipients and, in particular, should not be
distributed to persons with addresses in the
United States, Canada, Australia, the Republic of
Ireland or Japan or in any other country outside
the United Kingdom where such distribution may
lead to a breach of any law or regulatory
requirement.   The information in this
presentation is confidential and must not be
copied, reproduced or distributed to others at
any time except for the purposes of analysis by
certain employees and advisers of the recipient
who have agreed to treat such information as
confidential.   This presentation does not
constitute or form part of and should not be
relied on in connection with any offer or
invitation to sell, underwrite or solicit any
other offer to purchase or subscribe shares or
any other securities, nor may it or any part of
it, nor the fact of its distribution, form the
basis of, or be relied upon in connection with,
any contract. No representation or warranty
express or implied is made as to the fairness,
accuracy or completeness of the information
contained herein and no reliance should be placed
upon it. Application for shares in the Company
may be made only on the basis of the prospectus
relating to the Company which is expected to be
published in February 2005 and the risk factors
set out in that prospectus.   Arbuthnot
Securities Limited, which is authorised and
regulated by the Financial Services Authority, is
acting for the Company only and will not be
responsible to any other person for providing the
protection afforded to customers of Arbuthnot
Securities Limited or for advising such person on
the matters referred to in this presentation.
Arbuthnot Securities Limited has not approved the
contents of, or any part of, this presentation.
2
3

• David Wither Chief Executive Officer
• Sitkow Yeung Chief Financial Officer

4
Background and History

• Oliver Leisten awarded first patent in 1994
• 2000 Sarantel founded as MBO from Symmetricom
• Over 14m funding to date
• HQ and production in Wellingborough
• 2004 European Tech Tour - top 25

4
5
Revolutionary Filtering Antennas

• Significant Advantages in terms of
• Performance
• Size
• Consumer experience
• Ease of integration

3
6
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
5
7
Advantages for customers
6
8
Advantages for end users
7
9
Current Customer Applications

Savox GPS Accessory to Police Radio
Precisa GSM/GPS Phone
D-Media Windows-based GPS PDA
Forward Technology Sportsman Tracking Device
SkyHawke Golf Range Finder
TomTom Mobile phone accessory
Royaltek Windows-based GPS PDA
SysOnChip GPS Accessory
MiTAC Windows based GPS PDA
8
10
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

9
11
Over 50 Customers Worldwide
10
12
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

11
13
Sales Cycle

• Integrated into product early on in design
• Different lead times for different consumer
  devices
• GPS devices typically have a 6 month design cycle
• mobile handsets generally 12 months
• Good visibility over the next 18 months

12
14
GPS A Huge Opportunity
The GPS market rapid growth and low penetration
rates (

Handset market driven by

Legislation E911 (US), Ministry of
Communications (Japan), E112 (Europe)

Demand for new applications (personal navigation,
child/pet/asset tracking, enterprise services)

• Consumer devices
• PDAs, Laptops, Digital cameras etc.
• Navigational, recreational and tracking devices

Source ABI Research (Q2 2004))

• 200m unit market in 2004
• c.150 million people involved in outdoor
  activities (camping, hiking, fishing)
• 40 million golfers in the US
• 2bn spent on aftermarket accessories by
  recreational boaters in the US
• Source Deutsche Bank, Wachovia

13
15
Satellite Radio An Auspicious Future
Source XM and Sirius filings, Automotive News
and William Blair Company, L.L.C. estimates

• Significant benefits over terrestrial radio
• More choice 120 channels
• Subscriber business-model advertisement free
• Continuous service not confined by geography
  within US
• Two major players control the US market
• XM Satellite Radio (1) 75 market share of
  retail and 82 of automotive
• Sirius Satellite Radio (2)

14
16
Wi-Fi An Ubiquitous Technology
Source Independent Research Group, Gartner

• Hotspots
• 14,000 public access hotspots in US (2004)
• 35,000 hotspots forecast in Europe in 2006 (Frost
  Sullivan)
• Citywide implementation Amsterdam, Philadelphia,
  Portland, Taipei..
• An increasing threat to fixed-line
  infrastructure
• Consumer (70) enabling inexpensive data
  transfer across multiple devices in the home
• Enterprise (30) enhanced flexibility in the
  workplace

15
17
Financial Summary - PL
16
18
Financial Summary - Balance Sheet
17
19
Financial Summary - Cash Flow
18
20
Use of Proceeds

• To expand capacity
• To lease a larger production facility
• To fund working capital requirements

19
21
Summary

• To position the Company as the major supplier of
  antenna technology to the wireless devices market
  worldwide

20
22
Placing Details and Timetable

• Placing details
• Raising 15m for expansion and working capital
• Approximate 30 free float
• New shares qualify for EIS/VCT relief
• Illustrative Timetable
• Monday 21 February Closing date for
  applications
• Wednesday 23 February Dispatch of placing
  letter
• Monday 28 February Payment for shares
• Wednesday 2 March Dealings commence

21
23
Appendix
24
Director Biographies

• David Dey, Non-executive Chairman, aged 67,
  joined the Group in June 2003 and has over 30
  years experience in telecoms and technology
  companies, having worked at senior levels in
  companies such as British Telecom, Energis, IBM
  and Plessey. Recently, he has been the Executive
  Chairman of a number of early stage ventures such
  as Alpha Telecom Communications Limited and Neos
  Networks Limited. He is currently a director of
  Murray Extra Return Investment Trust PLC.
• David Wither, Chief Executive, aged 40, was
  appointed to the Board of Saturday in January
  2004 and has assumed primary responsibility for
  accelerating the Companys sales into high volume
  mobile device manufacturers. From 1998 to 2003 he
  was a Director at RF Micro Devices Inc. with
  responsibility for European sales and the
  Bluetooth product line. Previously he worked for
  Baxter Healthcare Inc.. He holds a Master of
  Science degree in Engineering Management and
  spent 7 years as an officer with the US Army
  Corps of Engineers.
• Sitkow Yeung, Finance Director, aged 47, joined
  the Group in May 2004 and was appointed to the
  Board in January 2005. He is a Chartered
  Accountant and has over 20 years experience of
  high growth technology companies. Sitkow was
  Finance Director with Ericsson Limited before
  becoming the European Controller for Ericssons
  mobile systems business. He also worked as
  Regional Director for Ericsson in Asia-Pacific.
  Recently, he has held senior finance roles at a
  number of venture capital backed technology
  companies.
• Dr. Oliver Leisten, Technical Director, aged 44,
  founded the Group in September 2000 and has over
  20 years experience in the radio communications
  industry. He is accredited with 11 patents for
  miniature dielectric loaded antennas, which form
  the existing intellectual property assets of
  Sarantel. Previously, Oliver was chief
  technologist at Symmetricom Limited, responsible
  for leading a team of specialist radio systems
  and design engineers. He trained with Philips
  Research Laboratories and has held a number of
  engineering appointments with Plessey Avionics
  and Communications and GEC.
• David Ward, Non-executive Director, aged 37,
  joined the Board in February 2003. He is
  currently a partner at MTI Partners, the private
  equity firm, which currently holds a 37 stake in
  Sarantel, where he has worked since 1999.
  Previously he was a Director of Calder Aluminium
  Limited, EMP Technoligies Limited, iBase Image
  Systems Limited and Phocis Limited.

24
25
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

25
26
Potential Benefits - Lower SAR
Twisted loop antenna lowers energy absorbed by
the head approx 90
SAR Specific absorption rate Published data plus
RFI Ltd Characterisation. IndexSAR supplied the
image
26