RNS Number:9465S
Ultra Electronics Holdings PLC
08 December 2003


Embargoed until 07:00                                            8 December 2003

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

                                 Trading Update

The Board of Ultra is pleased to report on trading before the Group enters the
close period in respect of its preliminary results for the year ending 31
December 2003.

Following the Group's interim results, announced on 4 August 2003, Ultra has
continued its strong financial performance in the second half. This performance,
in line with that achieved since flotation, has been driven by the Group's solid
order book, its position on new programmes, its performance in executing
existing programmes and by the successful integration of acquisitions. Increased
sales in growth areas such as Battlespace IT, airport systems and electronics
for armoured vehicles have more than offset the anticipated slow down in sales
of airborne anti-submarine warfare products. The Board therefore confirms that
the Group is on course to meet market expectations for 2003.

SML and Radamec Defence Systems, both acquired in July, are being integrated
into Information & Power Systems and, after the planned restructuring costs at
Radamec in 2003, are on course to contribute to profits in future years. The
purchase of the Ocean Systems business from BAE Systems was completed in
November and its integration into the Group's Tactical & Sonar Systems division
has started. Tactical Communication Systems in Canada, bought in September 2002,
is now fully integrated and is performing well.

The Group has maintained its focus on cost control and cash generation.
Improvements in the efficiency of operations around the Group have more than
compensated for the adverse US dollar translation impact and higher insurance
and pension costs. Ultra expects to report a strong cash performance for the
year as a whole.

New business

A number of new contracts has been secured in 2003 and the order book at the end
of December is expected to be above #360m, representing a typical level for
Ultra of order cover for future sales. Key successes since the half-year
include:

Tactical & Sonar Systems

-   further international sales of sonobuoy receivers for new
    ASW platforms currently in development
-   a first contract in the UK to begin the development of
    the next generation networked system of sonobuoys

Aircraft & Vehicle Systems
-   further sales of Ultra's Internet-based collaborative
    working environment to the MoD and to defence contractors
-   the selection by the US DoD of Boeing's HiPPAG-equipped
    solution for the US Small Diameter Bomb programme

Information & Power Systems
-   additional orders for equipment related to the UK Bowman
    contract
-   selection to supply the degaussing system for the ships
    of the US Coastguard Deepwater programme
-   further orders for Ultra's power equipment for the major
    upgrade programme on the UK's Southern Region rail network

Ultra will announce its 2003 preliminary results on Monday 23 February 2004.

                                    - 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
Susan Ellis or Susanne Walker                                      020 7067 0700

Notes to Editors:
Ultra Electronics 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 2,700 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 Systems 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, human/computer interface
equipment and shared working environment solutions.

Information & Power Systems including command and control systems equipment;
weapons interfacing electronics; radar tracking; electro optical tracking;
surveillance systems; naval data processing and distribution; airport and
airline information management systems; ID card systems; naval power conversion;
signature management of naval vessels; transit system power conversion and
control.





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