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CEO Statement, April 2011

2010 has been another year of strong growth for Telit, as the m2m industry emerged with renewed strength from the economic downturn. Telit continued to gain market share and 2010 revenues represent about 16% market share based on the forecast size of the market in the Beecham report from August 2010. Our rate of organic growth was higher than the relative increase in growth of the m2m market itself and our major competitors, which illustrates the quality of our product portfolio, our customer relationships and the strength of our sales and distribution network. During the year we achieved a revenue growth of 48.2%, an operating profit of $6.6 million and an increase of adjusted EBITDA(*) to $12.4 million (2009: $5.8 million). Following the minor increase of revenues from 2008 to 2009 (while the market itself decreased) our growth rate returned to the trend of previous years and our revenues grew at a rate above the market and our major competitors.

Our hard work over the past few years at building a market leading platform to capitalize on the exciting opportunities within the m2m market is paying off and we are encouraged by the fact that Telit has continued to increase its market share in 2010. With the aim of strengthening our strong market position, we completed the acquisition of Motorola m2m in March 2011. We are very excited about the opportunities this significant acquisition will deliver and we are confident that Telit is now even better placed to achieve its objective of becoming the leading provider of m2m solutions worldwide.

Our goal: Our strategy for 2011 is to continue to leverage our position as a leading player in the m2m market, offering customers a competitive edge by reducing their total cost of ownership and optimizing the performance of their products. We plan on doing this through continued investment in R&D, through our Infinita services and the integration of cellular and short range technologies into a complete m2m offering. The strengthening of our competitive edge and continued acquisition of market share will be supported, to a large degree, by the cost reduction achieved by the move of manufacturing to China in the second half of 2009.

Oozi Cats
Telit Communications PLC, Chief Executive Officer
April 2011

(*) EBITDA is defined as earnings before interest, tax, depreciation and amortization and Adjusted EBITDA is defined as EBITDA excluding share based payments and non-recurring expenses and income.