Torotrak PLC Regulatory News (TRK)

1 Oct 2007 07:42

Torotrak PLC01 October 2007 Torotrak PLC New Licence Agreement with Tata Motors Limited 1 October 2007 Torotrak plc is pleased to announce that it has entered into a Licence Agreementwith Tata Motors Limited of Mumbai, India, providing Tata Motors with the rightsto apply Torotrak's full-toroidal traction drive technology to a wide range ofTata Motors' products. Under the terms of the licence, which is subject to formal approval by theIndian Government, Tata Motors Limited has purchased the non-exclusive rights todevelop and manufacture transmissions which contain Torotrak's technology forincorporation and sale in TATA branded and co-branded products. The licencecovers use of the Torotrak technology in four fields of application (passengercars, light commercial vehicles, medium & heavy commercial vehicles, andconstruction equipment) and also allows Tata Motors to manufacture and selltransmissions to other customers of Torotrak in the Indian market. The financial consideration payable by Tata Motors in relation to the licence isin line with the agreements contained in the Memorandum of Understanding whichwe reported in our 2007 Preliminary Results Announcement on May 15th this year,and is at a level where Indian Government approval is required. It is normal forthis process to take a number of months to complete at which point Torotrak willprovide further details of the financial terms of the licence. Commenting on the deal, James Batchelor - Commercial Director, Torotrak plc,said: "We are delighted to have secured Tata Motors as a new licensee for Torotrak'stechnology. Tata Motors is one of the most ambitious and forward thinking Indiancompanies and we are very much looking forward to working with the Tata Motorsteams in India and the UK as they use our technology to help with therealisation of their global ambitions." Dick Elsy - CEO, Torotrak plc added: "I'm very pleased that we have secured this important new licensee in theautomotive and commercial vehicle sector. This agreement marks an importantmilestone for Torotrak - our first licensee in fast growing emerging markets." For further information contact: Torotrak: Telephone 01772 900938Dick Elsy, Chief Executive Tavistock Communications: Telephone 020 7920 3150Simon HudsonLulu Bridges Notes to editors: About Torotrak Torotrak is a world leader in full-toroidal traction-drive transmissiontechnology, focused on the development of IVT (Infinitely Variable Transmission)and TCVT (Toroidal Continuously Variable Transmission) systems which deliveroutstanding levels of performance, functionality and commercial advantage inautomotive, truck, bus, outdoor power equipment, agricultural, off-highway andancillary drive applications. About Tata Motors Tata Motors is India's largest automobile company, with revenues of US$ 7.2billion in 2006-07. With over 4 million Tata vehicles plying in India, it is theleader in commercial vehicles and the second largest in passenger vehicles. Itis also the world's fifth largest medium and heavy truck manufacturer and thesecond largest heavy bus manufacturer. Tata cars, buses and trucks are beingmarketed in several countries in Europe, Africa, the Middle East, South Asia,South East Asia and South America. Tata Motors and Fiat Auto have formed anindustrial joint venture in India to manufacture passenger cars, engines andtransmissions for the Indian and overseas markets; Tata Motors also has anagreement with Fiat Auto to build a pick-up vehicle at Cordoba, Argentina. Thecompany already distributes Fiat-branded cars in India. Tata Motors'international footprint include Tata Daewoo Commercial Vehicle Co. Ltd. in SouthKorea; Hispano Carrocera, a bus and coach manufacturer of Spain in which thecompany has a 21% stake; a joint venture with Marcopolo, the Brazil-basedbody-builder of buses and coaches; and a joint venture with Thonburi AutomotiveAssembly Plant Company of Thailand to manufacture and market pickup vehicles inThailand. Tata Motors has research centres in India, the UK, and in itssubsidiary and associate companies in South Korea and Spain. This information is provided by RNS The company news service from the London Stock Exchange