Surface Transforms Regulatory News (SCE)

Surface Transforms plc

("Surface Transforms" or the "Company")

Pre Close Trading Statement for the year ended 31 May 2014

Surface Transforms (AIM:SCE) announces that, whilst good progress is being made on the crucial game changing contracts, revenue in the year ended 31 May 2014 was approximately £1.3 million. Whilst this is below market expectations, it represents an 18% increase in revenue over the previous year. This shortfall in revenue will adversely affect the Company's expected loss before tax for the year.

David Bundred, Chairman said "Surface Transforms continues to pursue parallel and complementary strategies; in the short term the aftermarket/retrofit segment is crucial to both short term break-even and securing road mile experience of the Company's products, but ultimate shareholder value will arise from winning a significant mainstream contract with an OEM.

In respect to retrofit/aftermarket sales, the shortfall in revenue reflects an underperformance by the original distributors, Alcon and Mov'It. This issue was identified in 2013 and (as previously announced) we have since modified our sales distribution policy, recruited our own European sales manager and appointed complementary distributors including FF Corse (UK), Pean (Sweden), SIEA-Monstaka (France) and Perfection Lab (Italy). These policies are proving successful in generating new sales, albeit unfortunately at a slower rate than we originally envisaged. The Company will continue to appoint more distributors whilst at the same time pursuing sales opportunities with "near-OEMs", particularly in Germany.

Turning to the game changing contracts; the Company is making progress with an aerospace customer and two automotive customers and still anticipates being able to make further announcements in the current year."

The Company expects to announce its preliminary results for the year ended 31 May 2014 in the second half of August 2014.

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For further Company details visit www.surfacetransforms.com