MTI WIRELESS EDGE LTD.

ADMISSION TO AIM

MTI Wireless Edge Ltd. ('MTI' or 'the Company'), a market leader in the
manufacture of flat panel antennas for fixed wireless broadband, is pleased to
announce that today its shares started to trade on AIM with the ticker 'MWE'.

The Company designs and manufactures flat panel antennas, largely supplied to
the global original equipment manufacturers ('OEMs') of fixed broadband
wireless access systems. These products, originally designed to cope with
requirements of the company's first customers, the military forces, are robust
and high performance. With over 35 years of technical `know-how', flexible high
volume manufacturing capabilities and low failure rates, MTI's antennas now
comprise approximately 25% of the global fixed broadband wireless access
antenna market.

The Company's nominated advisor and broker, Corporate Synergy Plc, placed
approximately 15.4 million new Ordinary Shares at 39 pence per share and the
issue was well supported by investors in the UK, France and Israel. The new
shares represent 28.61% of the share capital of the Company. In addition MTI's
parent company, Tel Aviv listed MTI Computers and Software Services (1982)
Ltd., sold approximately 2.6 million ordinary shares.

The placement and sale raised a total of 7 million, representing 6 million (
5.05 million net) new money to MTI and 1 million to its parent company. At the
placing price MTI had a market capitalisation of approximately 21 million and
a free float at admission of 33%.

MTI CEO Dov Feiner, commented, 'Our IPO today gives us the resources to
strengthen our relationships with our international customer base. The world is
going wireless and all wireless systems rely on quality antennas to perform. In
this fast growing environment we need to protect our share of the fixed
wireless broadband antenna market as well as apply our technology to new
areas.'

For further information please contact:

Moni Borovitz, Finance Director, MTI Wireless Edge Ltd. tel: +972 (0)3 900 8900

David Seal / Luke Ahern, Corporate Synergy Plc tel: +44 (0)20 7448 4400

Rob Newman, Shared Value tel: +44 (0)20 7321 5029

NOTES TO EDITORS:

MTI is a developer and manufacturer of sophisticated antennas and antenna
systems, including antennas that are sold for use in worldwide interoperability
for microwave access ('WiMAX') compliant systems. Antennas transmit and receive
electromagnetic waves wirelessly. The Company produces antennas ranging in
frequency from 100 kilohertz ('KHz') to 40 gigahertz ('GHz'), for both military
and commercial applications and has an international customer base.

MTI's business has grown rapidly in recent years as wireless broadband
technology has increasingly become an established global commodity. Over 80 per
cent of the Company's sales are in the fixed wireless communications market,
predominantly for broadband systems. The directors estimate that the Company
has captured a 25 per cent global market share in the fixed broadband wireless
access ('FBWA') antenna market, largely via a number of leading OEMs who are
MTI's customers.

PRODUCTS

The Company offers more than 200 varieties of antennas for the FBWA market, as
well as antennas for other markets and uses. In 2005 the Company sold more than
220,000 antennas, the overwhelming proportion of which were outdoor flat panel
antennas for the FBWA market. MTI supplies antennas to a large number of
leading providers of wireless broadband connectivity solutions for integration
in their solution offerings, which in turn are sold across developed and
developing countries. The Company's antennas are typically mounted externally
on base stations and end-user premises and act as the enabling technology for
wireless communications for those users.

Wireless technology, which relies on communication antennas, offers many
advantages over traditional fixed line/digital subscriber line ('DSL')
technology, including:

* faster deployment than wired systems (no need to install cable to every
user);

* higher bandwidth;

* satisfying the demand for fundamental data and voice telecom services in
un-served areas where wired infrastructure cannot do so;

* lower upfront capital and maintenance costs (build out can be scaled both
in terms of area coverage and capacity - each installed base station can
support many subscribers);

* it is ideal for developing countries and last mile access in cities;

* true remote working (no need for fixed phone link cabling);

* familiarity: wireless fidelity ('WiFi') is available to consumer lap-tops
and is already user-friendly; and

* multiple services using a single network.

Commercial

The Company specialises in flat panel antennas, principally for fixed wireless
communication and also seeks to apply its technology for use in other markets.

Fixed Wireless Communication

The Company's flat panel antennas incorporate proprietary technology, which is
partly protected by several patents registered in the US and Israel. Other
patents are pending in Europe, Israel, the US and Canada.

In the FBWA market, the Company's antennas are used in systems that provide
wireless broadband data and voice services for subscribers in the last mile.
MTI's antennas can operate in licensed and licence-free bands ranging from 700
megahertz ('MHz') to 18GHz in conformity with industry standards.

In addition to these core products, the Company sells antenna mounting kits and
enclosures which allow OEMs to introduce a low-cost system solution.

Radio Frequency Identification ('RFID')

In 2005, the Company achieved its first sales of antennas for readers for
emerging RFID applications. RFID is a technology used to track assets in a
variety of different applications, including those related to supply chain
management as an alternative to bar code technology. Very small RFID
transponders or tags containing a unique identifier are placed on assets, for
example pallets, cases, or individual items and these tags communicate with the
RFID readers. The Company has recently entered the market for RFID readers,
which use several flat panel antennas. RFID requires very accurate antennas to
support complex logistics management systems. RFID sales accounted for revenue
of $0.15 million in 2005.

Military

The Company has over 35 years experience in developing, designing,
manufacturing, testing and marketing specialised antennas in high frequency to
millimetre wave bands. These antennas are used for a wide range of systems
including communication, communication jamming, signal intelligence, electronic
warfare systems (passive and active) and spectrum monitoring. The Company also
provides a range of antenna arrays for direction finding systems, electronic
surveillance measure antennas for submarines and unmanned aerial vehicles
special antennas.

Military antenna development keeps the Company at the forefront of antenna
technology, strengthening company research and development. The resulting
knowledge is applied to commercial as well as military antenna designs. The
Company's antennas have been installed on various airborne, ground, naval and
submarine applications.

The Company began targeting markets outside Israel several years ago and has
succeeded in penetrating Asia, Europe and North America with several types of
antennas. The Company is also a supplier of military antennas to the Israeli
defence industry and foreign defence establishments. Military sales accounted
for revenue of $1.65 million in 2005.

TECHNOLOGY

The Company's product development expertise is applied to both off-the-shelf
products and contract

engineering, for commercial and military applications.

Materials Engineering

Whilst designing military antennas, MTI's engineering staff developed
significant expertise in identifying and manipulating materials to optimise
antenna function. This expertise enables the Company to use a wide range of
materials in innovative ways to enhance the performance and durability of its
commercial antenna range. It also enables the Company to use less expensive
materials to reduce product costs, while maintaining performance.

High Gain

These antennas amplify relatively weak radio signals, traditionally through
geometric focusing of radio waves by means of a horn or parabolic dish to a
central feed point. The Company has developed innovative means of amplifying
signals that enable it to produce smaller, lower profile antennas with gain
equivalent to traditional parabolic antennas.

Wideband Matching

The Company produces antennas for a wide range of frequencies which can be used
in systems transmitting and receiving on multiple, but not necessarily
contiguous, channels. In addition, wideband antennas enable a standard
off-the-shelf product to be used by service providers transmitting on a wide
range of assigned frequencies.

Development

The Company has control processes in place to track development time and costs
throughout the product development cycle. These controls provide timely warning
of time or cost deviations and allow management to address and correct
potential problems at an early stage.

THE MARKET

COMMERCIAL

Broadband

Maravedis Inc. (WiMAX, NLOS and broadband wireless access (sub 11GHz) worldwide
market analysis 2004-2008 (February 2004)) have forecast that the sub-11GHz
fixed broadband wireless system market, will grow from $430 million in 2003 to
more than $1.6 billion by the end of 2008. MTI believes that on average, the
antenna market is 5-7 per cent of this system market.

Growth of the wireless broadband market is currently driven by demand for
broadband connectivity. Increasing deregulation should open up the
telecommunications / internet access markets to new suppliers. As more
countries enable carriers and service providers to operate on a variety of
frequencies, new broadband access markets are opening. Unlike the built-in
delivery systems of wireline infrastructure to transfer voice and data,
wireless technology requires the use of frequencies contained within a given
spectrum.

Wireless broadband technology offers opportunity and growth potential to
carriers targeting emerging

market sectors, such as small office and / or home office ('SOHO'), small and
medium enterprise ('SME') and many parts of the residential market because of
its bandwidth, low capital and operating costs and the ability to use the
technology to deliver sophisticated data and voice services. Roth Capital (Roth
Capital Partners - WiMAX and the broadband wireless industry (10 February
2005)) have forecast that the WiMAX systems are expected to lead the growth of
the FBWA market from $560 million in 2004 to over $2 billion by 2010, led by
residential and SOHO market segments. The Asia Pacific region is expected to be
the dominant region for WiMAX systems. The Company supplies antennas that are
integrated into WiMAX compliant systems and intends to supply its products for
use in base stations that serve WiMAX compliant mobile devices.

RFID

Firms and retailers ship hundreds of billions of units of goods annually.
Technology analysts believe that RFID may become the tracking methodology of
choice for an increasingly large percentage of that volume.

Frost & Sullivan (world RFID-based applications markets A696-11 (2004)) have
forecast that there should be considerable upside for RFID despite many
companies' reluctance to spend on new initiatives (particularly those involving
new technology). The RFID market has grown at an estimated compound annual
growth rate of 27 per cent since 2000. Frost & Sullivan have forecast that in
2010, the RFID reader market (for all uses) should reach approximately $2
billion.

The RFID system consists of readers and tags. The reader reads the information
on the tag, which stores basic information about an item. The Company has
designed and started to deliver antennas for the reader part of the RFID
solution as it believes that the technological capabilities of its antennas are
well suited for this application. These readers require flat antenna, similar
to the ones developed for the FBWA market and therefore the Company can
manufacture RFID antennas at competitive prices. The market for readers was
estimated by Frost & Sullivan to be 25 per cent of the overall RFID market.

MILITARY

The global military spend is projected by Cobham plc, a UK quoted company, to
increase over the next few years. There are two major reasons for this
increase: first, the expected upgrades of existing command and control systems
and second the introduction of new communications systems.

DIRECTORS

Brief biographical details of each of the directors are set out below:

Zvi Borovitz, Non-executive Chairman (age 67)

Mr Borovitz is the founder of the Company and MTI Computers. Prior to this he
worked at Elta Electronics Industries Ltd., a subsidiary of Israeli Aircraft
Industries, where he gained experience in microwave systems and communications
and was part of the team to develop the first Israeli airborne radar. During
his time at Elta he also managed an airborne electronic warfare programme. Mr
Borovitz has an MS in Electrical Engineering from the Polytechnic Institute of
Brooklyn.

Dov Feiner, Chief Executive Officer (age 49)

Mr Feiner has planned and implemented the Company's entry into the commercial
antenna market. Prior to joining the Company, Mr Feiner served for 12 years in
the research and development division of the Israeli Defence Force. Mr Feiner
holds a B.Sc. in Electrical and Computer Engineering from Ben Gurion
University. Mr Feiner is responsible for the overall management of the Company
and its international and domestic activities.

Moshe Borovitz, Finance Director (age 35)

Mr Borovitz, the son of Zvi Borovitz, is also Co-Chief Executive Officer of MTI
Computers. He was a consultant with Ernst & Young's Israeli affiliate Kost
Forer & Gabbay, a leading Israeli certified public accountancy firm. Mr
Borovitz is a certified public accountant with a B.A. in Computer Science from
Tel Aviv University, and has an MBA from Ben Gurion University. Mr Borovitz is
responsible for the Company's financial activities as its finance director,
assisted by a group of professionals.

Hanna Lerman, Non-executive Director (age 33)

Hanna Lerman was Chief Financial Officer of SunGard Business Integration Ltd.,
a subsidiary of SunGard Data Systems Inc., a global leader in software and
processing solutions for financial services, and of Insider - Online Financial
Services Ltd., a provider of online trading services in Israel and North
America. Prior to that Ms. Lerman managed the department of professional
practice at KPMG Israel. Ms. Lerman is a certified public accountant and holds
a B.A. in Economics and Accounting, and an MBA majoring in Finance from Tel
Aviv University.

Frank Lewis, Non-executive Director (age 60)

Frank Lewis is a businessman with over 25 years of experience in both quoted
and private companies. He has held board positions both in the UK and abroad
with rapidly growing, mid-market companies. Quoted companies of which he was
chairman include Lloyds British Testing Plc, an engineering services company,
Jetcam International Holdings Limited, a software company and Yoomedia Plc
(Executive Chairman), an interactive television company. Mr Lewis is a member
of the Institute of Chartered Accountants of England and Wales and is also a
member of The South African Institute of Chartered Accountants.

Stewart Millman MA, FSI, Non-executive Director (age 57)

Mr Millman has over 30 years' experience in finance and the financial markets.
He was an institutional fund manager for 10 years and a corporate financier for
20 years, and held managing director roles at Barclays de Zoete Wedd, NatWest
Markets and HSBC Investment Bank. His corporate finance experience includes
transactions involving major telecoms operators and various IT companies. Since
2002, he has been self-employed, is currently non-executive chairman of
Patsystems plc, a company traded on AIM, and acts as an adviser to, and/or
non-executive director of, various companies in the UK, Israel and elsewhere.

cheers GF.

MTI Wireless Edge worth a punt
20.03.06
Monisha Varadan


From Monisha Varadan of Allnewissues.com

These recommendations do not constitute advice, please read the risk warnings

MTI Wireless is an Israeli-based antennae development company. It has recorded a consistent year-on-year growth in profits, has maintained profit margins as high as 40% and over the next year is hoping to pay dividends which put the stock on a prospective yield of 2.5%. The business is based on the outskirts of Tel Aviv and was established nearly 30 years ago. In 1994 it was acquired by a larger technology company, MTI Computers. MTI Computers itself is quoted in Tel Aviv, operates a holding company structure and is owned largely by the Borovitz family. The parent company has decided to hive off the wireless division onto AIM and the shares listed last week. MTI Computers will continue to own 74% of the listed business. MTI is in the process of raising 6 million and, at the placing price of 36p, MTI Wireless Edge is valued at 19.9 million.

Operations

The business is exclusively focused on making antennae systems for wireless applications. The group originally developed these antennae for defence purposes as devices used to guide missiles. The technology needed to work in tough operating environments. Therefore, MTI developed flat antennae which could be wrapped around projectiles and this led to the creation of the first commercial antennae.

MTI's commercial antennae can be mounted externally on base stations and provide end users with access to wireless signals. The slim, flat model is the most popular design. It looks better, copes better with wind load, and is possibly the only solution for the WiMax integrated, a wireless communication device used, sometimes, to connect an entire city. MTI also designs antennae mounting kits that allow for low-cost easy set up. The business has spent nearly $7.5 million on R&D over the last few years and in January 2001 raised $4 million via a private placement to accelerate marketing and development. Scaled production has been achieved over the last five years with MTI selling nearly 750,000 antennas worldwide.

Business Development

The business has gathered an impressive list of clients worldwide. Most of its revenues are recorded in dollars and a large chunk of its revenues come from America. Its five largest customers account for 50% of sales and these five customers represent 50% of the global market. Alvarion, for instance, is the group's largest customer and has the greatest share in the global wireless market. In terms of defence application, the Israeli Defence Force accounts for a large portion of military sales. Historically, commercial sales contributed 86% of total sales, while military sales brought in the remaining 14%. Although military devices form a tiny portion of revenues, they cover a wide range of designs. The division is profitable and R&D is fully funded by its military customers. The group employs 60 full-time staff and takes on 20 contract staff during peak a production period which is reflected in the company's low cost base. In 2005 alone, the business sold 220,000 antennae; a majority of these were specialist outdoor, flat panel antennae for fixed wireless broadband. The devices can cost anywhere between $5 for a basic antennae to $250,000 for a top-end military system. As part of its growth strategy, the business has entered the fairly new and undeveloped RFID market and expects sales from this sector to increase over the next few years.

In the year to December 2005 sales grew by nearly 39% to $11.6 million, while profits doubled to $1.87 million. The parent company has chosen to IPO in order to increase its profile in Europe, get closer to its suppliers, move away from being a predominantly Israeli company and accelerate international marketing and business development. Some of the funds raised have also been set aside for working capital purposes.

Management

Zvi Borovitz, Non-executive Chairman and founder, worked for Elta Electronics, a subsidiary of Israeli Aircraft Industries, and was part of the team that developed the Israeli airborne radar. His family controls the Tel Aviv-listed parent company. Dov Feiner, CEO, has served as President since 1996 and was responsible for taking the business into the commercial markets. Moni Borovitz, Finance Director, was a consultant at Ernst and Young. He is the son of Zvi Borovitz.

Investment Conclusion

MTI operates in a fairly young, immature sector and has the advantage of having captured 25% of the global market share. If it maintains its current rate of growth, analysts are forecasting a 45% growth in sales in the current year and a 35% rise in 2007. Profits in 2006 are expected to come in at $3.5 million, putting the stock on a forward PE of 10. Following the fundraising, cash flow is expected to be strong, especially since the business finished the year with $3.9 million in cash. MTI is intending to pay out nearly 25% of earnings, implying a dividend yield of 2.5%. Given that MTI Wireless is a profitable, growing business, we see little reason not to invest. The shares are worth a punt.

Contact Details - Corporate Synergy 020 7448 4400

cheers GF.

goldfinger, this thread seems like a one man show, I hope to buy some shares soon but would like to get them a lower first.

Dont think youl get them much lower 049 as the forward P/E is just over 12 now and for a top tech like this expanding into Europe I feel the P/E should be at least double that P/E figure. Best of luck though.

cheers GF.

back to top for Jason.

cheers GF.

Edging up a tad each day.

cheers GF.

GF

Where do u see the sp in short term and long term

Buttsy its on a forward P/E of around 12.5 which in my opinion is far too cheap for a tech stock like this. It continues to nudge up each day but is being hampered by selling from those who bought stock pre IPO.

At some time that selling will abaitand we should start to see a decent rise up.

cheers GF.

Usual tick up this morning.

cheers Gf.

Get in this one before it gets away. The Naz in the USA today really pointed the way for techies in the next 18 months. Dont be sorry.

cheers GF.

I have been tracking these Goldfinger but these tech stocks are where i normally get my fingers burn`t.
Are you really that confident?

DB if you look at the piece from Monisha Varadon above from all new issues, it may give you a little more confidence. I reckon its on a forward P/E of circa 13 which in my opinion is far too low for a tech stock and a world market leader at that.

cheers GF.

DB if you look at the piece from Monisha Varadon above from all new issues, it may give you a little more confidence. I reckon its on a forward P/E of circa 13 which in my opinion is far too low for a tech stock and a world market leader at that.

cheers GF.

Has been tipped somewhere !

I am told it has been tipped on watshot. Not a member so havent seen it.

Ginger nut must have tipped it.

Nice to see hes in the know.

cheers GF.

Remind me have I told you undervalued this one is ?????????????.

cheers GF.

Yes about 10 times GF ,i'm having a look may take a small stake, ,still keeping my eye on Worthington Nichols when it floats though ,i quite fancy that one ,depending on the price it comes to market.

Me too Jimmy.

This ones moving ahead nicely this morning even though most small caps are looking subdued.


cheers GF.

Ticking up again this morning.

cheers GF.

Buy MTI Wireless Edge at 49p

Says Luke Heron of Watshot.com

It has taken me a while to warm to the prospect of recommending a foreign based company quoted on the London market, but this Israeli based concern is simply too cheap to ignore. I'll state right from the off, that this might be one for the long haul. Don't get me wrong, I have not abandoned the short term set-up of this site, but there is a bigger, longer term story that I think will emerge here, making this an attractive portfolio stock.

I usually steer clear of new issues simply because I hold the rather nae view that the institutions will have taken all the cheap stock. It appears in this case they have left a little for the next man. MTI Wireless Edge (MWE) has a solid balance sheet, will be dividend paying and has huge growth potential. It is a small cap that has already established itself as a world leader in a highly fragmented market.

Wireless technology may have been around for over a decade, but in reality, it is a market still very much in its infancy. Chip giant Intel, reckons that during 2006, 150 million people will become part of the wireless world. This figure is clearly a stab in the dark, but one thing is certain and that is that this year is set to be huge. This stock has been undervalued upon flotation and its prospects have been underestimated. MTI is clearly a company with momentum on its side. It has roughly 25% of the world market and is perfectly placed to build on this, both organically and via acquisition.

At 49p, you are being asked to pay 34% more than the institutional punters that put up 6 million pounds of new money at 36.6p a share. But still, you are buying a high-tech high-growth stock in a sexy market on a historic earnings multiple of 19 and an enterprise earnings multiple of 17.5. Based on my conservative projections, the earnings multiple will fall to just 14 in the current year, as EPS of 3.5p is reported - if we strip out my projected year-end net cash balances of 5.028 million pounds, the stock is trading on a current year PE of just 11.35, yielding 1.9%. I suggest a forward earnings multiple of 18 provides for a more accurate reflection of this exciting company's prospects. The bottom line is that I think there lies the possibility of almost 67% upside by the close of 2006, possibly a lot more. Thus the shares in MTI Wireless Edge are a "buy" at 49p with a nine-month price target of 82p.

Background.
MTI, which enjoys a quote both on the Israeli market and now AIM, is the market leader in the manufacture of flat panel antennas. "What, prey tell, are you on about Heron?"; I hear you cry! Well, to put it simply, MTI specialises in supplying the global original equipment manufacturers (OEMs) of fixed broadband wireless access systems. Originally designed to cope with requirements of the company's first customers, the military forces; these products are in a class of their own, offering both a robust and high performance - crucial elements in the broadband market. With over 35 years of technical `know-how', flexible high volume manufacturing capabilities and low failure rates, MTI's antennas now comprise approximately 25% of the global fixed broadband wireless access antenna market. If that ain't impressive, you'll have to tell me what is!

The sophisticated antennas and antenna systems, including the actual antennas, are sold for use in worldwide interoperability for microwave access compliant systems. To clarify (for myself as much as my loyal readers), antennas transmit and receive electromagnetic waves wirelessly. MTI produces antennas ranging in frequency from 100 kilohertz to 40 gigahertz , for both military and commercial applications, boasting an international customer base. MTI's business has shown remarkable growth in recent years as wireless broadband technology has increasingly become an established global commodity. Over 80% of MTI's sales are in the fixed wireless communications market, predominantly for broadband systems.

The market
Market analysis for total worldwide broadband use suggests that between 2004-2008, the sub-11GHz fixed broadband wireless system market, will grow from $430 million in 2003 to more than $1.6 billion by the end of 2008. The company believes that on average, the antenna market is 5-7% of this system market.

Growth of the wireless broadband market is currently driven by demand for broadband connectivity. Increasing deregulation should open up the telecommunications / internet access markets to new suppliers - at least, that's the theory. As more countries enable carriers and service providers to operate on a variety of frequencies, new broadband access markets are opening. Unlike the built-in delivery systems of wireline infrastructure to transfer voice and data; wireless technology requires the use of frequencies contained within a given spectrum. Therefore, wireless broadband technology offers opportunity and growth potential to carriers targeting emerging market sectors, such as small office and SME markets, in addition to many parts of the residential market, because of its bandwidth, low capital and operating costs and the ability to use the technology to deliver sophisticated data and voice services.

Meanwhile, Roth Capital Partners have estimated that WiMAX systems are expected to lead the growth of the fixed broadband wireless access market from $560 million in 2004 to over $2 billion by 2010, led by residential and small office market segments. The Asia Pacific region in particular, is expected to be the dominant region for WiMAX systems. The significance for MTI, is that the company supplies antennas that are integrated into WiMAX compliant systems and intends to supply its products for use in base stations that serve WiMAX compliant mobile devices.

Elsewhere, the radio frequency identification (RFID) market is a further avenue for profitability. Firms and retailers ship hundreds of billions of units of goods annually. Technology analysts believe that RFID may become the tracking methodology of choice for an increasingly large percentage of that volume. The RFID market has grown at an estimated compound annual growth rate of 27% since 2000 and leading industry experts, Frost & Sullivan have forecast that in 2010, the RFID reader market should reach approximately $2 billion.

The RFID system consists of readers and tags. The reader reads the information on the tag, which stores basic information about an item. MTI is well placed to benefit from this market, as it has designed and started to deliver antennas for the reader part of the RFID solution as it believes that the technological capabilities of its antennas are well suited for this application. Who am I to argue?!

Management
The management team has a great mix of both UK plc and technological experience. Chief executive Dov Feiner, has implemented the company's entry into the commercial antenna market. Prior to joining the company, Feiner worked for 12 years in the research and development division of the Israeli Defence Force. Finance director Moshe Borovitz has an incredible amount of experience for a man of just 35 years. Borovitz was a consultant with Ernst & Young's Israeli affiliate Kost Forer & Gabbay, a leading Israeli public accountancy firm - a little comfort is afforded here, bearing in mind certain past accountancy difficulties with Israeli based enterprises. Making up the non-executive numbers are the CFO of SunGuard, Hanna Lerman, former Lloyds British Testing chairman Frank Lewis and institutional fund manager, Stewart Millman. Millman has held senior positions at Natwest, HSBC and of lesser note, Barclays de Zoete Wedd - a thoroughly despicable organisation in my view, the less said about that the better.

Forecasts & Conclusion
My numbers are based on conservative assumptions and do not include the prospect of earnings enhancing acquisitions, which are clearly a strong possibility. By the end of this year, the company should have confirmed its performance in a trading statement, by which point, the market will have woken up to the potential and have begun rating the stock on a forward 2007 earnings estimate. That is where it starts to get really interesting.

In the year to 31st December 2005, pre-tax profits of $1.88 million were recorded on sales of $11.7 million. The tax charge was 7% and thus earnings of 2.58p were unveiled. For the current year, we can still expect a low tax rate of around 8%, which on my sales forecasts of $16.7 million, should see earnings of 3.5p, allowing a dividend payment of 1p. Again, I remind you that these forecasts are conservative. 2007 will see sales shoot ahead to around $23.5 million, though tax is going to kill earnings growth, but we should still pre-tax profits of around $5.4 million, equating to earnings of 4.1p, which should fund a dividend payment of 1.5p.

By the close of this year, the market should be rating the stock on a sensible earnings multiple. Quoted companies operating in a similar space to MTI, trade on multiples of over 50, with the larger, more stable businesses bringing the averages for the sector down a little, but they are still showing PE's of over 20. My suggested 18 times earnings for such a high growth leader is not demanding and indicates a share price target of 72p, add in the cash of 9.7p, and 82p seems very achievable. Again these numbers use conservative assumptions - I am confident that MTI will exceed my expectations. With net cash of over 5 million pounds, the company is clearly well placed to make an acquisition.

MTI Wireless Edge is a potential star of the AIM market. A City analyst recently described MTI as a "well-kept secret". I think he is right, though as it has only just joined the market, there has hardly been a lot of time to find it! MTI is the world leader in antennas for fixed broadband wireless communications. With over 80% of its sales to this specialist area, a holding in this stock is an exposure to the high growth global wireless market. MTI encompasses more than 30 years expertise from military antenna development and its management are keen holders in the stock, with circa 8.1% between them.

I expect my forecasts to be humbled by an outperformance from a highly capable management in a huge growth market in a year that is set to see an exceedingly high increase in wireless use. On a historic earnings multiple of 19, falling to 14 (on a conservative basis), with newsflow inevitable as the company executes on its business plan of bringing new, high specification products to market, plus the high probability of acquisitions in the short run; this is an exciting company well worth backing. At 49p, the company is capitalised at 26.35 million pounds and is a share to "buy" with an eight-month price target of 80p.

Key Data

EPIC: MWE
Price: 48 - 50p
Market : AIM

cheers GF.