Starcom : Update on Agreement with Xplosive

Starcom plc

12 August 2019

("Starcom" or the "Company")

Update on agreement with Xplosive

Starcom (AIM: STAR), which specialises in the development of wireless soluons for the remote tracking, monitoring and protecon of a variety of assets, provides the following update regarding the Company's agreement with Xplosive Soluons Pty Ltd ("Xplosive") in South Africa.

On 7 February 2019, the Company announced a revised agreement over a three-year period with Xplosive for the supply of Kylos units intended for use in the protecon of cale. Although a limited number of inial goods were shipped under the revised agreement, it has become apparent to the Company that Xplosive is unable or unwilling to connue with the contractual arrangements for local reasons. Despite aempts by the Company to find a soluon to these problems, the Directors of Starcom now consider this contract to have been terminated and no further acon will be taken with regard to it.

Ancipated revenues over the three-year period under the agreement with Xplosive would have been approximately $500,000. Notwithstanding the terminaon of this agreement by Starcom, the Directors sll ancipate that trading for the current year will be in line with current market expectaons and that the Company will achieve revenue growth over the previous year.

The Company's interim results for the period ended 30 June 2019 are expected to be published within the next few days.

Enquiries:
Starcom Plc	07785 727 595
Michael Rosenberg, Chairman
Avi Hartmann, CEO	[phone]
Allenby Capital Limited (Nominated Adviser and Broker)	020 3328 5656
James Reeve / Jeremy Porter / Asha Chotai
Peterhouse Capital Limited (Joint Broker)	020 7469 0930
Lucy Williams / Charles Goodfellow / Eran Zucker
Leander PR (Financial PR)	07795 168 157
Chrisan Taylor-Wilkinson