RNS Number:9385L
Ultra Electronics Holdings PLC
05 June 2003



Embargoed until 0700                                                5 June 2003


                         Ultra Electronics Holdings plc
                            ("Ultra" or "the Group")

                                 Trading Update


The Board of Ultra is reporting on trading before the Company enters the close
period in respect of its interim results for the six months ending 30 June 2003,
which will be announced on 4 August 2003.

Trading

Ultra reconfirms the guidance given in its AGM statement on 17 April 2003 that
its strong order book, its positioning on major programmes and its ability to
execute projects on time and to cost combine to give the Board confidence in
Ultra's prospects for further growth.  The full year effect of having acquired
TCS in September 2002 will augment organic growth.

Management focus has been maintained on delivering the mix of products and
services demanded by the Group's customers at the lowest cost.  Increases in
pension and insurance costs together with an adverse exchange rate translation
effect have been more than matched by savings elsewhere, including reduced
interest charges.  Ultra is consequently trading modestly ahead of market
expectation and the Board expects that Ultra's profit growth in 2003 will be in
line with that achieved since flotation.

Confirming the quality of Ultra's earnings, the Board is expecting to achieve
good operating cash performance in the first half of this year and the current
outlook is that this performance should continue through the remainder of the
year, further strengthening the balance sheet.  The Board has previously
commented on Ultra's headroom for further acquisitions and the Group continues
to pursue complementary businesses that can be acquired at appropriate prices.

New business

A number of new contracts have been secured in the first half of 2003 and the
order book at the end of June is expected to be in excess of #350m, representing
the equivalent of 15 months of future sales.  Key orders include:

Tactical & Sonar Systems
- orders with a combined value of over #11m to supply tactical
  communication radio systems to the US and Korean armies
- orders to supply the US Navy with sonobuoys, valued at over #10m
- a contract to supply sonobuoy receivers in Europe, worth more than #2m

Aircraft & Vehicle Systems
- contracts to supply BAES with high integrity software and systems
  support, worth over #4m
- an order for over #2m to supply Ultra's unique Internet-based shared
  working environment to the MoD's Ground Based Air Defence integrated project
  team

Information & Power Systems
- contracts to supply the UltraTrak passenger baggage reconciliation
  system to airlines at London's Heathrow airport with a value to date of #10m
- orders to supply various equipment related to the UK Bowman project
  with a total value exceeding #6m

- additional contracts worth approximately #4m for power supplies for
  Network Rail's upgrade of Southern Region rail infrastructure upgrade.


                                    - Ends -


Enquiries:
 Ultra Electronics Holdings plc                                    020 8813 4300
 Dr Julian Blogh, Chief Executive                      www.ultra-electronics.com
                                                       information@ultra-scs.com


 Weber Shandwick Square Mile                                       020 7067 0700
 Susan Ellis / Susanne Walker


Notes to editors: Ultra is a group of specialist businesses designing,
manufacturing and supporting electronic and electromechanical systems,
sub-systems and products for aircraft, ships, submarines, armoured vehicles,
airports and transport systems worldwide.  The Group, which employs 2,600 people
in the UK and North America, focuses on high integrity sensing, control,
communication and display systems with an emphasis on integrated Information
Technology solutions.

The Group concentrates on obtaining a technological edge in niche markets, with
many of its products and technologies being market leaders in their field.
Ultra has an increasing role of supporting prime contractors by undertaking
specialist system and sub-system integration using the combined expertise of the
Group businesses.

Ultra is organised into three divisions as follows:

Tactical & Sonar including secure tactical line-of-sight radio systems,
multiplexers and switches; tactical datalinks; cryptographic equipment; active,
passive and multi-static sonobuoys; sonobuoy receivers and processors;
distributed surveillance sensor arrays; ship's sonar systems and ship's torpedo
defence systems

Aircraft & Vehicle Systems including miniature airborne compressors; high
integrity software and systems; aircraft system electronics; aircraft noise and
vibration control; propeller de-icing, balancing and control systems; armoured
vehicle electronic information and control systems and human/computer interface
equipment

Information & Power including command and control systems equipment; weapons
interfacing electronics; naval data processing and distribution; airport and
airline information management systems; passenger baggage reconciliation
systems; ID card systems; shared working environment solutions; naval power
conversion; signature management of naval vessels; transit system power
conversion and control


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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