Embargoed until 0700                                                                                              18 May 2016

Ultra Electronics Holdings plc

("Ultra or the Group")

Ultra Electronics Awarded an $18.4 Million Electronic Warfare Contract

Ultra Electronics announced today that its Ultra TCS business, based in Montreal, has been awarded a contract valued at $18.4 million for a customer in a NATO country with options for after-sales support. Ultra will provide Electronic Warfare equipment and engineering support for the delivery of UAV platforms that will be used in surveillance missions.

Under this contract, Ultra TCS will provide a variant of its ALR-510 ELINT (ELectronic INTelligence) system, systems engineering, installation and test support. The ELINT system will be used aboard the UAV and controlled from a ground support center using Ultra TCS' TALON software. Ultra TCS will also provide products produced by Ultra EWST: a Radar Threat Simulator for use in the ground support centre and a flight-line go/no go tester.

Rakesh Sharma, Chief Executive of Ultra commented:

"I am pleased that Ultra has been awarded this contract. It is one of the opportunities that moved from last year to this, referred to in the 2015 Prelim announcement. This is a significant opportunity and demonstrates Ultra's established ability to supply and support EW systems combining capabilities between TCS and the recently acquired Herley businesses."

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www.ultra-electronics.com

Further information about Ultra:

Ultra Electronics is an internationally successful defence, security, transport and energy company with a long, consistent track record of development and growth. The Group manages a portfolio of specialist capabilities generating innovative solutions to customer needs. Ultra applies electronic and software technologies in demanding and critical environments ranging from military applications, through safety-critical devices in aircraft, to nuclear controls and sensor measurement. These capabilities have seen the Group's highly differentiated products contributing to a large number of platforms and programmes.

Ultra has world-leading positions in many of its specialist capabilities and, as an independent, non-threatening partner, is able to support all of the main prime contractors in its sectors. As a result of such positioning, Ultra's systems, equipment or services are often mission or safety-critical to the successful operation of the platform to which they contribute. In turn, this mission-criticality secures Ultra's positions for the long term which underpins the superior financial performance of the Group.

Ultra offers support to its customers through the design, delivery and support phases of a programme. Ultra businesses have a high degree of operational autonomy where the local management teams are empowered to devise and implement competitive strategies that reflect their expertise in their specific niches. The Group has a small head office and executive team that provide to the individual businesses the same agile, responsive support that they provide to customers as well as formulating Ultra's overarching, corporate strategy.

Across the Group's three divisions, Ultra operates in the following eight market segments: