Spirent plc (LSE: SPT; NYSE: SPM), a leading communications technology company, today announces a further restructuring within the Service Assurance division. The restructuring will realign resources and further reduce operating costs while the business continues to be transitioned towards IP service assurance. It will also allow support for existing leased line monitoring customers to be provided on a more efficient basis. The strategy for this division is to deliver service assurance solutions for IP business services and residential triple play offerings, including voice, video and data, as well as DSL and field test solutions.

As part of the restructuring, headcount in the division is being reduced by 180, representing 30 per cent of the workforce. The restructuring is expected to result in annualised cost savings of approximately £8 million, of which £3 million will benefit the second half of this financial year. The restructuring will give rise to a one time charge of approximately £2 million, of which an estimated £1.3 million will be in cash, in the first half of 2005. This is in addition to the approximately £3 million charge announced in our trading update of 21 April 2005. As previously announced, the Service Assurance division is expected to report an operating loss, before the one time charges, in the region of £10 million in the first half of 2005 under International Financial Reporting Standards.

The costs associated with the initiative to rationalise the supply chain activities across Spirent Communications have now been quantified. It is expected that the actions will result in a one time charge in the second half of the year of approximately £3 million, of which £1 million will be in cash.

Anders Gustafsson, Chief Executive, said:

“We have taken further actions in the Service Assurance division to realign the cost base while we continue to transition the business towards IP service assurance. We believe that the advanced voice, video and data services that are being rolled out by service providers worldwide will require sophisticated monitoring to ensure the high quality, reliable services their customers have come to expect. Our solutions address the challenges of delivering these advanced services.”

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