Antenna Pioneer, Sarantel, Radiates Optimism in 3.5 Million Pounds Funding Round; Funding Follows $14 Million Mobile Handset Contract.

Business Editors/High-Tech Writers

WELLINGBOROUGH, England--(BUSINESS WIRE)--Feb. 11, 2003

Sarantel, a pioneer of miniature antennas for the mobile wireless market, has raised GBP 3.5 million in a first closing in a new round of investment led by two of the UK's leading hi-tech venture capital investors, MTI Partners and VCF Partners, and supported by eTechnology VCT.

The funding, which follows a $14 million mobile handset contract win in November, will be used for marketing and to introduce the company's 3G mobile designs. A second closing, due within three months, is expected to raise the total amount to GBP 6 million.

New US regulations require all new mobile (cellular) phones to transmit the caller's location when making emergency (E911) calls and this can be achieved by incorporating a GPS (Global Positioning System) capability and antenna into the handset. Sarantel's GPS antenna is ideally suited to this application because it works alongside mobile handset antennas without interference, meaning a better chance of the caller being located when calling the emergency services.

Consumers are already buying Sarantel-based products, such as an accessory which clips in to a PDA, transforming it into a GPS-driven navigation system. Sarantel's high efficiency and low interference qualities could be critical to making 3G handsets work better and their batteries last longer. Even PC makers are starting to recognise that a high performance antenna can offer wireless-LAN and Bluetooth users more reliable communications.

Sarantel CEO Barrie Foley said: "The first closing of this crucial funding and our recent major contract demonstrates that in a tough market both investors and users are convinced by our technology. Demand for our products in the US, Asia and Europe is taking off rapidly and more than 1,000 electronic device makers worldwide are interested in our products."

Matt Taylor of VCF Partners adds: "In a chilly market for technology investing Sarantel has done very well to bring two new VC investors on board. For me, a product which makes wireless devices work better and cuts radiation to the user is a winner. Sarantel's products are already selling well and in markets which are very big and growing; that adds up to an attractive proposition for investors.

David Ward of MTI Partners said: "The sophistication of Sarantel's technology will have a lasting impact on mobile phone use. We are keen to support innovative devices of this type, which combine clever technology with an identified and receptive market. With the benefit of the experience of a number of economic cycles, MTI continues to be at the forefront of supporting UK based technology businesses, as it moves into its third decade of investments."

Graham Woolfman, a Director of eTechnology, who is joining the board of Sarantel said:- "We are very pleased to have participated in this financing syndicate, supporting an experienced management team with outstanding proprietary technologies. We are excited by opportunities in the Wireless Communications sector, where we have developed specialist investment focus, and believe that this investment is complimentary to our portfolio."

VCF was an original investor, alongside 3i, in 2000, and ran the current fund raising from new investors. It has also been closely involved in setting the company's strategy and keeping the management team focused on making it happen. Before the current funding round Sarantel had raised GBP 8 million, including GBP 5.5 million from 3i and GBP 2.5 million from VCF, who bought out 3i in September 2002.

Notes to Editors about US E911 mandate and GPS

The ruling from the US FCC (Federal Communications Commission) on the 1996 act obliges US cellular network carriers to ensure 95 percent of mobile emergency calls can be located to within 150 metres by 2005. This has been the subject of much debate within the mobile communications industry as to its feasibility.

Whilst other technology using triangulation techniques in conjunction with the cellular base station signals has been developed to provide location fixing via the network itself, there is growing evidence from US mobile operators that they will not meet the accuracy requirements. In this respect the use of GPS for location-based services and E911 position fixing is set to be the technology of choice and the Sarantel contract award goes a long way to backing up this assertion.

The global positioning system relies on 24 US-owned satellites and is capable of defining any position on the surface of the earth to within a few tens of metres.

About Sarantel

Founded in September 2000, Sarantel (www.sarantel.com) specialises in high-performance antennas for mobile devices. Its products deliver key benefits in GPS-based location, and in voice and data communications over Bluetooth, WirelessLAN and mobile telephone frequencies.

Sarantel Ltd was formed from the management buyout of Symmetricom Inc's antenna division. Symmetricom is the world's leading provider of network synchronisation equipment and remains a shareholder in Sarantel.

The company has pioneered a new form of antenna design which etches copper on to dielectric ceramic cylinders and has also designed a highly cost-effective volume manufacturing process at its Wellingborough facility. With its close associations with Loughborough University, the company's PowerHelix technology is finding applications in a wide variety of mobile wireless applications.

About VCF Partners

VCF Partners (www.vcf.co.uk) is one of the UK's most seasoned investors in unquoted technology companies with a track record stretching back 18 years. Its two mature funds have made good cash returns for investors and VCF is currently raising money for a new institutional fund. Other recent deals led by VCF include nanotechnology company Oxonica Ltd and Wire-e Ltd, a new player in wireless data services. VCF has a six-strong investment team with a combined 94 years of experience.

About MTI Partners

MTI (www.mtifirms.com) provides specialist venture capital to British high technology companies that are at an early stage in their development.

MTI's strength lies in its appreciation of hi-tech companies coupled with the experience to provide quality business advice. All its executives are well-qualified technologists who have a passion for helping young companies, and their management teams, evolve and grow. They have enjoyed success in commercial business environments at the most senior levels of management before joining MTI.

MTI's overriding motivation for investment is a company's potential for commercial success, determined by the quality of its technology, potential market, and the calibre of its management.

About eTechnology VCT plc

eTechnology VCT is a venture capital fund targeting investments in early and mid-stage companies with a technology bias. The fund is managed by Cavendish Asset Management Ltd, and is regulated by the FSA. The portfolio includes investments in sectors such as IT, Medical Devices, Life sciences, and Communications.