Surface Transforms Regulatory News (SCE)

Surface Transforms plc

("Surface Transforms" or the "Company")

New Distribution Agreement with Alcon Components Ltd

Surface Transforms plc (AIM: SCE), manufacturer of carbon fibre reinforced ceramic materials, is pleased to announce the signing of a distribution agreement with Alcon Components Ltd ("Alcon") ("Agreement").

Under the terms of the Agreement, Alcon is appointed as the Company's exclusive distributor for the promotion and sale of high performance carbon ceramic disc brake products in the aftermarket for road cars within the Far East and selected original equipment ("OE") automotive vehicle manufacturers.

The Agreement, which is effective from 1 January 2012, is for an initial three year period and if target purchase volumes of carbon ceramic discs, as specified in the Agreement, are achieved, is anticipated to generate revenues to Surface Transforms of approximately £2.5m over the contract term. Actual revenues generated under the Agreement however, may be of a higher or lower amount, depending on the product mix supplied.

One of the initial after market programmes being launched by Alcon relates to ceramic brake systems for the Nissan GT R.

Commenting Kevin Johnson, CEO, Surface Transforms said:

"We are delighted to sign this agreement, which further cements the relationship between Surface Transforms and Alcon, and represents another milestone in the continued development of the Company."

Alistair Fergusson MD of Alcon said:

"This is a valuable next step in the long term relationship between Alcon and Surface Transforms. We are very excited by the performance of the Surface Transforms' product and look forward to exploiting this technology."

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About Surface Transforms (www.surface-transforms.com)

Surface Transforms plc is the UK's leading manufacturer of `next-generation' carbon fibre reinforced ceramic composite materials (CRFCs). It is one of two global manufacturers of carbon ceramic brake discs and the Company's high-performance products are being commercialised with major industry partners, for an expanding range of innovative global applications in automobile brakes, aircraft brakes and rocket components.

About Alcon (www.alcon.co.uk)

Alcon, based in Tamworth, Staffordshire, specialises in the design, development and manufacture of specialist brakes and clutches for use in motorsport, performance road cars and specialist sectors such as defence, armoured protection and low carbon vehicles.

Alcon is one of the leading brake systems suppliers in the UK and has been providing brake and clutch solutions to professional teams competing in the world's premier motorsport series including F1, NASCAR, IRL, WRC, S2000, and Australian V8 Supercars, for over 25 years. Best known in racing perhaps, but today some 50% of Alcon's activity is with prestige road car original equipment manufacturers ("OEMs"), marque tuners, special vehicle builders, armouring and defence contractors, and the fast growing field of low carbon transport. Alcon counts Audi, Jaguar LandRover, Noble and Bentley among its family of performance car OEM manufacturing clients.