Ultra Electronics Holdings plc

("Ultra" or "the Group")

Ultra Electronics awarded a five year Acoustic

Countermeasure Contract worth up to $34m

Ultra Electronics announced today that its Ocean Systems business, based in Braintree, MA USA, has been awarded a firm one year contract valued at just over $4m from the US Navy for the continuing production of the ADC MK2 Countermeasure. Options to extend the contract for a further four years could increase this initial value to just under $34m.

The ADC MK2 is an expendable acoustic countermeasure launched from both ships and submarines to protect those platforms from torpedo threats. Ocean Systems has been producing the ADC MK2 since 1988 and has delivered over 20,000 devices to date. This five-year contract includes effort for design enhancements, development, production, and support services.

Rakesh Sharma, Chief Executive of Ultra commented: "I am pleased that Ultra has been awarded this follow-on contract. It reinforces Ultra's position as a leader in the Undersea Defensive Warfare environment through the provision of highly complex countermeasure capabilities to both the US Navy and international customers".

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Enquiries:

Rakesh Sharma, Chief Executive                                                                         020 8813 4307

Ami Sharma, Group Finance Director

Susan McErlain, Corporate Affairs Director                                                          07836 522 722

James White, MHP Communications                                                                   020 3128 8756

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:

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