Hytera Communications Completes Acquisition of Sepura

Hytera Communications Corporation Limited (002583.SZ), the leading global provider of innovative professional mobile radio (PMR) communications solutions that improve organizational efficiency and make the world safer, announced that as of 24 May 2017 it has completed its acquisition of the Sepura Group PLC, based in Cambridge, United Kingdom, the leading provider in TETRA products and solutions for organizations worldwide.

"The PMR communications industry is seeing rapid evolution, and Hytera leads in incorporating new technologies and attractive features that deliver more effective solutions for our customers," said Mr. Qingzhou Chen, founder, chairman and president of Shenzhen, Guangdong-based Hytera. "Adding the Sepura Group complements our strengths in technological innovation, especially in TETRA, along with adding sophisticated engineering talent and an experienced operating team, and enhances our channel partnerships around the world."

Sepura is a market leader in 20 countries and has end-customers in more than 100 countries, and has the second-largest market share in public security in Europe. Hytera's acquisition of Sepura adds approximately 700 professionals and staff to Hytera's organization.

"Hytera has been investing strategically in Europe," said Mr. Chen. "In 2011, Hytera acquired what is now Hytera Mobilfunk GmbH in Germany, growing it into a significant PMR provider in Europe and one of our most important research centers. By adding Sepura, Hytera now has two more innovation centers, in the United Kingdom and Spain. With enhanced capabilities, we can better serve local markets and help to address increasing security challenges in Europe," added Mr. Chen.

Established in 1993 in Shenzhen, China, Hytera Communications is the world's fastest-growing PMR solution provider, and the world's #1 DMR Tier III Trunking provider. Its more than 7,000 employees serve organizations in more than 120 countries, including in government, the public security sector, the utilities, transportation, and oil and gas industries, and a range of other businesses.

In 2016, both Hytera and Sepura provided PMR solutions for event management and public safety at the 2016 Olympic Games in Brazil. Next year, Hytera will provide similar PMR communications solutions for security and event management for the 2018 World Cup in Russia.

"Joining with Hytera gives us access to a broader cross-section of the market, gives our dealers the advantage of a wider range of products and solutions, and provides growth opportunities for our engineers and research and development technicians," said David Barrass, the interim Chief Executive Officer of Sepura. "With its growing momentum in the PMR space and some very high-profile opportunities, Hytera is executing a clear strategy as it expands globally. It's a terrific opportunity."

Last year, Hytera reported year-over-year growth of 39%. In 2016, Hytera's overall sales of terminals were up 52%, and its overall sales of infrastructure increased 86%.

The announcement of the Sepura deal's closing comes in the wake of Hytera's highly anticipated debut at Critical Communications World 2017 in Hong Kong of its new LTE-PMR Convergence Solution, which comprises cutting-edge Multi-mode Advanced Radio terminals, narrowband-broadband infrastructure, and management software. Hytera's LTE-PMR Convergence Solution incorporates feature-rich broadband technologies while ensuring that critically important voice services remain reliably accessible using narrowband technologies such as TETRA, DMR, and PDT.

Hytera Chairman Qingzhou Chen will visit Sepura's offices in the U.K. and Spain in June to deepen relationships with key management and to meet personnel. "Hytera has tremendous momentum in the marketplace," he notes. "Last year, we became the second-largest PMR communications provider in the world, and we believe there remain excellent prospects for growth in key markets."

About Hytera

Hytera Communications Corporation Limited is the leading global provider of innovative professional mobile radio (PMR) communications solutions that improve organizational efficiency and make the world safer. Established in 1993 in Shenzhen, China, Hytera Communications is the second-largest PMR provider in the world, the world's fastest-growing PMR solution provider, and the world's #1 DMR Tier III Trunking provider. Hytera's more than 7,000 personnel serve customers in 120 countries and regions, including government organizations, public security institutions, and customers in utilities, transportation, oil-and-gas, and other sectors. Fully 40% of Hytera's personnel are engaged in engineering, research and development, and product design. In 2011, Hytera became a publicly-listed company in China, trading on the Shenzhen Stock Exchange (002583.SZ); by the end of 2016, Hytera's market capitalization had grown 500% since going public. More information is at www.hytera.com.

About the Sepura Group

Founded in 2002 and serving customers in more than 100 countries, the Sepura Group has become a market leader in the design, manufacture, and supply of digital radio products, systems, and applications for business and mission-critical communications. The Sepura Group's portfolio includes TETRA, DMR, P25, and LTE system solutions for public safety organizations and commercial customers in transportation, utilities, oil and gas, manufacturing, mining, hospitality and construction. The Sepura Group includes Spanish PMR provider Teltronic S.A.U., and Finnish applications developer Portalify. More information is at www.sepura.com.

About Teltronic

Teltronic S.A.U. has more than 40 years of experience in the design, manufacturing, and implementation of turnkey TETRA, P25, and LTE digital and analog land mobile radio communications solutions worldwide, for customers in the transportation, public safety, utilities, and industrial sectors. Teltronic's portfolio includes end-user applications and systems for integrated command-and-control centers and custom surveillance. With more than 300 network references in 50 countries, Teltronic is dedicated to provide complete radio network infrastructures, control centers, and end-user equipment, including specialized onboard systems. For information is at www.teltronic.es.