Press release

Presteigne, UK
2nd February 2002

INTELEK PLC $ 5.0M ACQUISITION OF US SATCOM EQUIPMENT MANUFACTURER

INTELEK plc ("Intelek") announces that its subsidiary, Paradise Datacom LLC ("Paradise"), entered into a conditional agreement on Friday 1 February 2002 with Sierra Networks to purchase the business and assets of Sierra Networks' Satcom division ("Sierra Satcom").

Intelek is fully listed and a techMARK company; its activities include the design and manufacture of electronic components and systems for the satcom, wireless communications and in-flight entertainment sectors as well as aerospace engineering.

REASONS FOR THE ACQUISITION
The acquisition of Sierra Satcom represents an important further step in Intelek's strategy to transform itself into a focused communications technology business.

The acquisition will enable Paradise to offer complementary satellite communications equipment to its existing customers as well as offering its existing products to Sierra Satcom's customers. The Directors of Intelek ("Directors") believe that the ability to offer a more comprehensive range of existing products will raise Paradise's position in its market place in the long term, increasing the total available market and helping it compete against larger competitors who are able to offer modems, amplifiers and block up converters ("BUCs") or transceivers.

It is the Directors' intention that the Sierra Satcom business to be acquired, will be moved from its current base outside Boston, Massachusetts, USA, as soon as practicable (expected to be within a few months), to Paradise's North American facilities in Boalsburg, Pennsylvania, USA. This is expected to result in significant cost savings including improvements in purchasing.

The acquisition of Sierra Satcom is expected to increase Intelek's share of the satellite communications market, with the prospect of significant growth in revenues and margins when the acquired operation becomes part of Paradise. It is anticipated that improvements in sales will arise through Sierra Satcom's products being taken to more customers by Paradise's substantially more extensive network of direct sales people and representatives. Margin improvements are expected to arise in part through the inclusion of Paradise's own amplifiers in the transceivers post-acquisition. Currently Sierra Networks purchases amplifiers from another source for its satcom products.

PURCHASE CONSIDERATION AND INFORMATION ON SIERRA SATCOM
The total purchase price is a maximum of .968 million (approximately £3.51 million). Of this .268 million (approximately £3.02 million) is payable in cash within seven days of completion. Payment of the remaining {content}.7 million (£0.49 million) is dependent on the sales of Sierra Satcom's products during the twelve month period ending 31 December 2002. The first contingent payment will be equal to 33.33 per cent of such sales in excess of million (£4.95 million) up to a maximum payment of {content}.5 million (£0.35 million). This contingent payment is due 60 days after Paradise achieves .5 million (£6.01 million) of such sales or on 1 March 2003 if the maximum is not achieved before 31 December 2002. The second contingent payment is equal to 7.5 per cent of such sales in excess of .5 million; this second contingent payment is capped at {content}.2 million (£0.14 million) and due 60 days after Paradise achieves the sales required to pay Sierra Networks the maximum or on 1 March 2003 if the maximum was not earned before 31 December 2002.

Through its Satcom division, Sierra Networks is one of around a dozen companies worldwide which design and manufacture BUCs and transceivers which are used in the terrestrial segment of satellite communications networks, particularly in satellite terminals with antennae less than 2.4 metres in diameter ("VSATs"). Together with Paradise's amplifiers and modems, they form an essential part of the equipment transmitting signals up to and receiving signals from communications satellites. Sierra Satcom's products are sold to VSAT manufacturers and satellite communication systems integrators, the same type of customers to which Paradise already sells complementary equipment.

For the 9 months ended 30th September 2001 Sierra SatCom's turnover was .37 million (£3.80 million) and profit before interest and tax was {content}.46 million (£0.32 million). The assets of Sierra Satcom subject to the acquisition comprise fixed assets and stocks to a total value of .65 million (£1.17 million) at the date of completion.

Completion of the Acquisition is expected to take place on or before 8 February 2002.

CURRENT TRADING
Group trading remains in line with the Directors' expectations. The Directors anticipate that, when the relocation of Sierra Satcom's activities to the Paradise US operations are complete, the acquisition will be earnings enhancing. At that time, the Intelek Group will be able to benefit from the synergies between Sierra Satcom and Paradise. The Directors remain optimistic with respect to delivering benefits to shareholders from its chosen strategy.

Note : exchange rate used £1 : .4134 as at 31 January 2002

Products Available

• Metalbacked PCBs
• Precision s/sided & d/sided softboard PTFE PCBs
• Multilayer Circuit Boards (PCBs)
• DLVAs
• PIN diode switches
• Multioctave broadband amplifiers
• TDM modules
• Active & passive microwave components
• Microwave thin film circuit manufacture
• RF machining & box build assembly