Surface Transforms Regulatory News (SCE)

Surface Transforms Plc

DRAFT PRE CLOSE TRADING STATEMENT

The Board of Surface Transforms plc, one of the world's two manufacturers of ceramic brake discs for the aircraft and automotive industries, is pleased to provide a trading update for the financial year ending 31 May 2010.

The Company's results for the year will be above market expectations. Turnover is expected to be in excess of £800,000 and 17% above last year (2009 £679,284). Net losses will be significantly lower than the prior year and both losses and cash are expected to be better than brokers' forecasts. Cash balances at 31 May 2010 were £414,513 (31 May 2009 £404,275)

The slow but general improvement in the world markets after the severe downturn in 2008/9 is reflected in the Company's trading and particularly in automotive markets where most manufacturers are starting to invest in new models with improved fuel efficiency and reduced weight. The order book at 31 May 2010 was 312% higher than the same period last year at £519,670 (31 May 2009 £166,370).

The Board expects further improvement in the Company's performance over the next 12 months and will update shareholders further when the audited accounts are published.

For further information on the Company visit www.surface-transforms.com

Enquires:

Dr Kevin Johnson, CEO 0151 356 2141

Geoff Hall, Co. Secretary & Fin Controller 0151 356 2141

Seymour Pierce Ltd 0207 107 8000

Nandita Sahgal

David Foreman