Share Buyback Programme

13 April 2022

CML Microsystems Plc

("CML" or the "Company")

Share Buyback Programme

CML is pleased to announce the launch of a share buyback programme of up to £3.0 million (the "Programme").

The Company has shareholder authority to repurchase 2,578,522 ordinary shares of 5 pence each ("Ordinary Shares") as approved at its last AGM (which represents c. 15 per cent. of the Company's issued ordinary share capital). The Board has decided to launch the Programme to return funds to shareholders.

The Programme is currently expected to end no later than 3 months from the date of this announcement and in order to continue past the Company's 2022 AGM, which is typically held in August each year, a new shareholder authority will need to be obtained at the AGM for the Company to purchase its own shares. The principal purpose of the Programme is to reduce the share capital of the Company and return funds to shareholders who sell their Ordinary Shares; repurchased Ordinary Shares will either be taken into treasury or cancelled.

In order to effect the Programme, CML has entered into an agreement with the Company's broker, Shore Capital Stockbrokers Limited ("Shore Capital"), to carry out on-market purchases of its Ordinary Shares. This agreement includes provisions giving Shore Capital authority to carry out market purchases under the Programme independently of the Company.

Purchases may continue during any closed periods of the Company, as defined by retained UK law version of the Market Abuse Regulation 596/2014/EU ("UK MAR"), which may fall during the term of the Programme. The Programme will not necessarily comply with the safe harbour requirements set out under Article 5 of UK MAR and, accordingly, the Company may not at all times benefit from the exemption contained in Article 5 of UK MAR.  Furthermore, due to the limited liquidity in the Ordinary Shares, any market purchase of Ordinary Shares pursuant to the Programme on any trading day could represent a significant proportion of the daily trading volume in the Ordinary Shares on AIM and could exceed 25 per cent. of the average daily trading volume. Details of all purchases made pursuant to the Programme will be announced via RNS and published on the Company's website as required by UK MAR without delay.

The Company confirms that, other than as disclosed in this announcement, it is not currently in possession of any unpublished inside information.

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About CML Microsystems PLC

CML develops mixed-signal, RF and microwave semiconductors for global communications markets. The Group utilises a combination of outsourced manufacturing and in-house testing with trading operations in the UK, Asia and USA. CML targets sub-segments within Communication markets with strong growth profiles and high barriers to entry. It has secured a diverse, blue chip customer base, including some of the world's leading commercial and industrial product manufacturers.

The spread of its customers and diversity of the product range largely protects the business from the cyclicality usually associated with the semiconductor industry. Growth in its end markets is being driven by factors such as the appetite for data to be transmitted faster and more securely, the upgrading of telecoms infrastructure around the world and the growing prevalence of private commercial wireless networks for voice and/or data communications linked to the industrial internet of things (IIoT).

The Group is cash-generative, has no debt and is dividend paying.