Torotrak PLC Regulatory News (TRK)

19 Dec 2007 07:00

Torotrak PLC19 December 2007 19th December 2007 Torotrak PLC ("Torotrak" or "the Company") New Licence Agreement and Engineering Development Agreement with a Major European Truck and Bus Manufacturer Following the statement contained in Torotrak's Half-Yearly Results, publishedon 27th November 2007, that the Company had entered into a Memorandum ofUnderstanding with a major European truck and bus manufacturer, Torotrak plc ispleased to announce that it has now entered into a Licence Agreement and anEngineering Development Agreement relating to the use of Torotrak'sfull-toroidal traction drive technology in this client's commercial vehiclerange. The total value of the Licence Fee and subsequent payments relating to theEngineering Development Agreement is in excess of £7.0m, with more than half ofthis sum being payable during this financial year. Under the terms of theLicence Agreement the client has secured the right to use Torotrak's technologyto develop and manufacture transmissions for worldwide sales in their vehiclerange together with a period of exclusivity to develop Torotrak's technology foruse in the field of heavy commercial vehicles. In addition to the Licence Agreement, the parties have also entered into anEngineering Development Agreement whereby Torotrak will undertake a substantialprototype engineering programme for the client which will span a number ofyears. Torotrak and the client have agreed that, for reasons of commercial sensitivityand in order to protect the customer's competitive position, the new licensee'sidentity will remain undisclosed. Commenting on the agreements, Dick Elsy - CEO, Torotrak plc, said, "Theseagreements with this prestigious customer highlight the capability and economicbenefit of Torotrak's technology in the commercial vehicle market. We aredelighted to have secured this new client - recognised as a market leader andfor their world-class engineering skills in their field - as a Torotraklicensee. With these new agreements, we have taken a further, major step in therepositioning of Torotrak as a provider of toroidal transmission technology fora wide range of product and market applications. The successful implementationof our diversification strategy during the past three years has moved Torotrak along way from its single focus and dependency on the automotive market, and theCompany is substantially stronger as a direct result." For further information contact: Torotrak: Telephone 01772 900938 Dick Elsy, Chief ExecutiveJeremy Deering, Finance Director Tavistock Communications: Telephone 020 7920 3150 Simon HudsonLulu Bridges - ends - About Torotrak Torotrak is a world leader in full-toroidal traction-drive transmissiontechnology, focused on the technical and commercial development of IVT(Infinitely Variable Transmission) and TCVT (Toroidal Continuously VariableTransmission) systems which deliver outstanding levels of performance,functionality and commercial advantage in automotive, truck, bus, outdoor powerequipment, agricultural, off-highway and ancillary drive applications. This information is provided by RNS The company news service from the London Stock Exchange