Contract Win

2 July 2015

Spectra Systems Corporation

("The Company" or "Spectra Systems")

Nine year contract with Chinese supplier of secure government certificates

Spectra Systems, a leading supplier of authentication technology for banknotes, brand authentication and tax stamps, is pleased to announce that it has entered into a supply contract with a Chinese manufacturer of secure documents.

The contract relates to the supply by Spectra Systems of at least $5.6m of high margin materials and up to $0.5m of hand-held readers, over a term of 9 years commencing in July 2016. The contract requires minimum annual materials revenues of $0.625m, whether or not such materials are ordered. The delivery of these materials to the new customer will not require additional staffing at the Company and will contribute the entire gross margin to our earnings.

Dr. Nabil Lawandy, CEO of Spectra Systems, stated: "We are extremely pleased about the penetration of our security products into Asia. Our customer is a supplier of government certificates with strong ties to other customers, which we hope will drive our revenues further. In addition, we are confident that this new relationship will also benefit our TruBrandTM smartphone-based authentication technology in the Asian markets".

"The Board is also very pleased to see long term contracted revenue growth in areas outside of the banknote industry and is pleased to confirm that the Company is on track with expectations for midyear."

Enquiries:

Spectra Systems Corporation

Dr. Nabil Lawandy, Chief Executive Officer Tel: +1 (0) 401 274 4700

WH Ireland Limited

Chris Fielding (Head of Corporate Finance) Tel: +44 (0) 20 7220 1650