Targets 2011-2013

Jan 12, 2011

Ascom targets for 2013 an EBITDA margin of 14-15%. In 2011 it will be investing in accelerated growth and increased profitability. The Wireless Solutions and Network Testing divisions are aiming for annual growth rates of 5-10% from 2012 onward.

Ascom will continue to systematically implement its successful corporate strategy based on Mission-Critical Communication through 2011-2013. Investment in new products, markets and technologies in 2011 will provide the basis for accelerated growth in 2012 and 2013. At Group level, Ascom has set itself the target of achieving an EBITDA margin of 14-15% in 2013, while maintaining an average annual organic growth in the Wireless Solutions and Network Testing divisions of 5-10% from 2012 onward.

In the coming three years, Ascom will continue to pursue the successful corporate strategy it adopted in 2004 and focus consistently on Mission-Critical Communication in its business-to-business activities. Investment in new products, markets and technologies is aimed at further consolidating and expanding its leading market position in the respective markets. Targeted investments in 2011 in the Wireless Solutions and Network Testing divisions will form the basis for accelerated growth in the years 2012 and 2013. One of Ascom's medium-term objectives at Group level is an EBITDA margin of 14-15% in 2013 ("in 13: 14 to 15"). Both Wireless Solutions and Network Testing divisions are looking to achieve average annual organic growth of 5-10% in 2012 and 2013. These targets are based on the assumption of a stable economic environment and largely stable currency relations.

Wireless Solutions aiming for international market leadership in health care communication
Wireless Solutions intends to expand its already strong position in the health care market and become the international market leader in health care communication. The market it addresses is set to continue growing as a result of demographic developments, pressure to further improve efficiency in health care, and social trends toward home care (the need for elderly and sick people to receive health care and support in their own homes).

Parallel to this, business in other target segments such as industry, retail, hotels and high-security buildings will continue to be developed.

Ascom Wireless Solutions intends to continue its research and development efforts at a high level and in 2011 will undertake additional investment to advance the use of GSM technology in on-site communications. This will broaden its product range and give it a competitive edge. Furthermore, the division's indirect sales channels in the United States, Southern and Eastern Europe and the Middle East will be systematically expanded. It also intends to underpin these growth initiatives by an acquisition, preferably in the field of health care communication.

The target for Wireless Solutions in 2013 is an EBITDA margin of 12-15% and an average annual organic growth rate of 5-10% in the years 2012 and 2013. Wireless Solutions is expected to show slight growth in 2011.

Network Testing - a global market leader in the fields of benchmarking and optimization of mobile networks - will benefit from LTE investment
Network Testing aims to consolidate its position as global market leader in the fields of benchmarking and optimization of mobile networks and benefit from the anticipated investments in LTE. The future introduction of the new LTE mobile standard, which is being driven by increased demand for mobile broadband services, is expected to boost investment spending by mobile network operators from 2012 onward, although investment levels are likely to vary from region to region. Network Testing's aim to become global market leader in the use of LTE in mobile networks will be a key driver of growth in 2012 and 2013.

In 2012 and 2013 the target for Network Testing is an average organic growth of 5-10%, while revenue is predicted to remain stable in 2011. Network Testing has set itself the goal of an EBITDA margin of 16-19% in 2013.

Security Communication in its position as national champion focuses on solutions for national and civilian security institutions
Security Communication intends to maintain its leading position as system integrator in the Swiss domestic market with a substantial installed base, and is focusing on security communication solutions for national and civilian security institutions. One of the growth options it continues to pursue is the sale of its products to foreign markets through international partners. There is likely to be a slight decline in revenue in 2011. Security Communication has set itself the goal of an EBITDA margin of 7-10% in 2013.

Outlook
Ascom showed organic growth in 2010 and achieved the communicated EBITDA margin target of 11-12%.

The guidance at Group level for 2011 will be announced at the Annual Media Conference on March 9, 2011 by the new CEO.

This document does not constitute an offer or solicitation to subscribe for, purchase or sell any securities. This document is not being issued in the United States of America or the United Kingdom and should not be distributed in any jurisdiction in a manner where such distribution would not comply with regulatory requirements. In particular, this document may not be distributed into the United States, to United States persons or to publications with a general circulation in the United States. In addition, the securities of Ascom have not been and will not be registered in any jurisdiction outside Switzerland. The securities of Ascom may not be offered, sold or delivered and no solicitation to purchase such securities may be made within the United States or to U.S. persons absent an applicable exemption from the registration requirements of the United States securities laws or within any other jurisdiction and in a manner where such offer, sale, delivery or solicitation might not be in compliance with regulatory requirements (including the United Kingdom).

This document does not constitute an offer or solicitation to subscribe for, purchase or sell any securities. This document is not being issued in the United States of America or the United Kingdom and should not be distributed in any jurisdiction in a manner where such distribution would not comply with regulatory requirements. In particular, this document may not be distributed into the United States, to United States persons or to publications with a general circulation in the United States. In addition, the securities of Ascom have not been and will not be registered in any jurisdiction outside Switzerland. The securities of Ascom may not be offered, sold or delivered and no solicitation to purchase such securities may be made within the United States or to U.S. persons absent an applicable exemption from the registration requirements of the United States securities laws or within any other jurisdiction and in a manner where such offer, sale, delivery or solicitation might not be in compliance with regulatory requirements (including the United Kingdom).