T42 Iot Track. Regulatory News (TRAC)

19 Nov 2007 07:02

Traction Technology PLC19 November 2007 Traction Technology Plc (AIM: TRAC) Agreement with Optare to develop and market hybrid buses Traction Technology Plc ("Traction" or the "Company"), a designer and delivererof environmentally friendly, low emission series diesel electric hybrid enginesystems, announces that it has signed a Memorandum of Understanding with TheOptare Group ("Optare"), one of the UK's leading bus and coach designers andmanufacturers, to jointly develop a range of single deck series hybrid vehiclesfor the UK bus market. It is planned to produce the first prototype vehicle based upon an Optare Versawith Traction's super capacitor powerpack by Spring 2008. Subject to the satisfaction of certain fuel economy and emissions targets,Optare has taken an option to build a minimum of 10 vehicles during 2008 forsale to various operators in the UK. Both parties are optimistic regarding thefurther sales opportunities for this new offering to the market. Traction's hybrid engine systems are already on trial with four separate buscompanies in Merseyside, Suffolk, Sussex and with Epsom coaches on behalf ofTransport for London. Nick Brayshaw, Chairman of Traction, commented: "This agreement with Optare is a major step forward for Traction and nowprovides us with a direct route to market. We look forward to providing Optarewith the proven technological advancements that we have made in our hybrid powerand control systems in its operational environment." Optare plays a leading role in UK bus design and manufacture and is one of themarket leaders for single deck vehicles in the UK bus industry. The businesscomprises of three divisions: Bus Manufacturing, Coach Sales and Unitec, itsdedicated after-sales and parts division. Optare employ 550 people across alldivisions and has an annual turnover of around £60m. For more information visithttp://www.optare.com. For further information please contact: Traction Technology PlcNick Brayshaw, Chairman +44 (0) 1403 791 392 Ambrian Partners LimitedRichard Brown/ Richard Greenfield +44 (0) 20 7776 6400 Parkgreen Communications Limited +44 (0) 20 7479 7933Paul McManus +44 (0) 7980 541 893 paul.mcmanus@parkgreenmedia.com This information is provided by RNS The company news service from the London Stock Exchange