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CEO Statement, Interim Results 2008

We are pleased to report on strong progress made in the first six months of 2008, in line with our plan.

We have achieved revenue growth of 31.6%, as we have met the market's increasing awareness of and demand for our superior m2m technology. Telit's performance during the first half of the year has been very positive as we have continued to win new business and gain market share. Indeed, the first half 2008 over first half 2007 improvements in revenues and gross profit demonstrate both the growing market opportunity and Telit's strengthening position in the marketplace.

The first half of the year has been a highly successful period in terms of new client wins. The expansion of the Company's global footprint has seen over 325 new design wins secured in our operations in Telit EMEA, Telit Americas and Telit APAC. The global m2m market is gathering momentum and Telit is very much in the ascendancy among its peers. Many of the wireless M2M module vendors differentiate themselves by focusing on specific technology standards. Telit is one of the very few players that support GSM/GPRS, CDMA and UMTS networks, while entering the arena of short range RF technologies such as WiFi, Zigbee, Bluetooth and RFID. Telit delivers strong and sustainable growth and is ranked by market research firm Berg Insight as the third largest M2M module supplier worldwide in terms of sales.

Berg Insight's report, "The Global Wireless M2M Market", analyzes the latest market developments in all regions around the world and forecasts that the number of cellular network connections used for machine-to-machine communication will grow from 37.5 million connections in 2007 at a compound annual growth rate (CAGR) of 37.9% to 186 million connections in 2012.

In August 2008 Telit received the first installment of €6.5 million from the previously announced award from the Italian ministry of Economic Development. The award, which was approved in principle in 2006 subject to the achievement of qualifying conditions, is split into a €2.6 million grant and a €3.9 million loan at favorable terms, secured by the Italian government with a repayment schedule spanning 10 years. The entire updated amount of the award is approximately €13 million and the next installment is expected in late 2009 again subject to the achievement of qualifying conditions.

The award was granted in connection with Telit's R&D facility in Sardinia which, since its incorporation in 2006, has greatly strengthened Telit's R&D capabilities and has already contributed to Telit's product portfolio with the addition of the UMTS, WiFi and integrated applications. The Sardinia facility, currently employing 36 R&D personnel and expected to reach 40 employees by year end, specializes in short range RF technologies such as Bluetooth, Zigbee and WiFi, as well as the convergence of long and short range technologies. This R&D center also leads, among other projects, Telit's involvement in the E-Call initiative and the Gas AMR project mandated by the Italian authorities.

During H1 2008 we set up and staffed sales offices in the Republic of South Africa and in Brazil. At the beginning of H2 2008, local outsourced manufacturing of Telit's products began in Brazil, a move that is expected to spearhead Telit's penetration of this huge market.

Also during H1 2008, the Company settled the outstanding legal claims which were pending with Magneti Marelli Brazil, with no impact on the Company's income statement. The claim filed in Brazil in 2004 by Magneti Marelli against Telit and the counter claim filed by Telit, in connection with Telit's discontinued operations, are both to be withdrawn, with neither party paying any sum to the other. Following the dismissal of this claim Telit is not involved in any significant litigation.

Oozi Cats
Telit Communications PLC, Chief Executive Officer
September 25, 2008