Surface Transforms Regulatory News (SCE)

13 Jan 2005 13:54

Surface Transforms PLC13 January 2005 RNS Release 13 January 2005 Trading Update The Company's half-year results for the six months to 30 November 2004 will beannounced in February 2005 and the Board takes this opportunity to updateshareholders on progress within our automobile and aircraft brake applicationmarkets, and the strengthening of the management team. The company's unique CFRC technology is used to make carbon ceramic materialbrake discs and pads and the products have been undergoing performance trialswith a number of end-user customers. First Commercial Sales of Road Car Brake Discs As announced in June 2004, Metek GmbH and Surface Transforms have signed aco-operative agreement to develop and market carbon ceramic brakes for road carapplications in Europe. Under the terms of the agreement Surface Transforms isproviding the ceramic brake discs and pads whilst Metek is supplying the brakecallipers and conventional pads as well as calibrating, testing and qualifyingthe brake systems. We reported to shareholders at our AGM in October 2004 of our attendance at theAutomotive Aftermarket Show in Essen, Germany last November. It is one of themost prestigious automotive aftermarket shows in Europe and it provided anexcellent venue to launch and showcase our "System ST" branded carbon ceramicbrake discs and pads. The show, which was attended by around 400,000 visitors, met our expectations.The Company received 150 enquiries, 20 of which were from European specialistvehicle tuning companies, a key market for our brakes and pads. We also tookfirm orders for 10 brake systems for despatch in the second quarter of 2005 andwe expect further orders for the brake systems during this year. The brake systems are fully professional upgrade kits, comprising the latestceramic brake technology, which can be fitted by specialist tuning companies orcompetent private individuals to a range of prestige and performance vehiclesincluding Ferrari, Porsche, Mercedes, BMW and Audi. Aircraft Brakes Agreements Dunlop Update As previously announced, Dunlop Aerospace has a Master Licence Agreement withthe Company, which covers the supply of braking materials for a range ofdifferent aircraft models. Over the past eighteen months, Surface Transforms andDunlop Aerospace have been working against tight timescales to develop andevaluate carbon ceramic materials for a new wide-bodied commercial aircraft. Unfortunately, the performance evaluation period required to fully develop,qualify and manufacture the brake discs for this model of aircraft will belonger than the aircraft's launch timetable and consequently ST's carbon ceramicbrakes will not be used during the initial years of the plane's operation.Surface Transforms will continue to work with Dunlop Aerospace under the termsof its Master Licence Agreement. New Aircraft Brake Agreement Surface Transforms has signed an agreement to commence carbon ceramic aircraftbrake disc evaluation with a major US-based aircraft brake supplier. The first stage of the development programme will commence immediately and willgenerate revenues which we expect will escalate with the satisfactory completionof a series of development milestones. Shareholders will be given furtherupdates as the project advances, subject to customer confidentiality. Executive Management Team Kevin Johnson PhD, MBA, who joined the Company in July 2004 as OperationsDirector, has been appointed to the Board of Surface Transforms with immediateeffect. In addition, Mr. Antoni Sznerch, BSc, MBA, has been appointed BusinessDevelopment Director. He will be responsible for sales and business developmentin the automotive applications market and has some 25 years' experience incomposite materials in the automotive market. He was formerly business managerof the high-performance automotive materials division within Cytec EngineeredMaterials Inc. (1982-2003) and European sales manager of Advances CompositesGroup Limited (now part of Umeco). General As at 31 December 2004 the Company had unaudited cash and cash deposits ofapproximately £2.95 million, equivalent to 21 pence per share. Details of the Company's business and financial performance, its share pricehistory and the latest published commercial news can be found onwww.armshare.com which can be reached via www.surface-transforms.com. Analystreviews of the Company are available on AmReview on the armshare.com website. Enquiries, please contact: Julio Faria Neil BoomManaging Director Managing DirectorSurface Transforms plc Gresham PR Ltd.01928 735498 020 7404 9000 Johnny TownsendJohn East & Partners Limited020 7628 2200 This information is provided by RNS The company news service from the London Stock Exchange