Transense Regulatory News (TRT)

For Release: Friday 30th Sept 2011

Transense Technologies plc (the 'Company' or 'Transense')

Interim Results & Management Statement - For the half year ended 30 June 2011

Highlights

·; Increased activity with GM

·; Joint Development Agreement ("JDA") with McLaren

·; Establishment of new trading division, IntelliSAW

Chairman's Statement

Sales in the 6 months to 30 June 2011 amounted to £249,000 [2010:- £243,000] resulting in a pre-tax loss for the period of £793,000 [2010:- £825,000].

During the first 6 months of the year Transense made significant progress in transforming itself from a company dependent for its revenues upon royalties from licensees to a company having five revenue generating channels; Licensee royalty income, engineering consultancy, McLaren JDA, Translogik and IntelliSAW.

We continue to make progress in the automotive industry. In this context, we have varied our agreement with Honeywell, which has ceded its exclusivity for torque applications. This, in turn, enabled us to open a dialogue with a Tier 1 supplier who will manufacturer the flexplate sensor on behalf of the end-user; these Tier 1 discussions are at a relatively early stage, and no decision has yet been taken by GM as to whether the torque technology will be incorporated in future vehicles. Nevertheless, the re-negotiation of the Honeywell licence has undoubtedly opened up opportunities for us.

After lengthy negotiations, we have recently entered into a joint development agreement with McLaren Electronic Systems Limited ('McLaren Electronics') for the development of a product for specific motorsport applications, and it is anticipated that further use of Transense's Surface Acoustic Wave ("SAW") Sensor technology will follow.

Translogik has extended the marketing of its tyre testing systems and probes. Orders have been received from major tyre manufacturers. Testing continues with our iTrack system for monitoring tyre pressure, tread and temperatures, and which is of direct benefit to major mine operators worldwide, having regard to the extensive delays they experience in securing replacement tyres for their equipment.

Finally, we have re-negotiated our licensing arrangement with Vectron, which has enabled us to open a new trading division, IntelliSAW. IntelliSAW has received conditional orders and sales should shortly commence within the electrical distribution market.

Much remains to be done to secure the orders needed to achieve the breakthrough we envisage, but we are making important progress.

David Kleeman

Non-Exec Chairman

30th September 2011

CEO's Report

Transense

GM has been identified as the end-customer for the torque drive-line 'flexplate' sensor, using the Company's patented SAW technology. The Flexplate project for evaluation of Transense's SAW torque sensor technology began in 2004. Originally developed for use in eight-cylinder engines, GM has expanded the project to also include its four and six-cylinder family of engines. As part of this process Transense has successfully negotiated a variation of the otherwise exclusive licence to Honeywell, permitting Transense to deal directly with various named companies including GM preferred Tier 1 suppliers.

The flexplate is an integral part of the vehicle powertrain control system and has the potential to improve vehicle driveability, reduce fuel consumption and improve transmission shift quality. This will be the first time a propulsion system has been able to measure engine torque 'live', enabling optimal control to be maintained throughout a vehicle's life. Current torque management systems rely on simulated models derived from production engine testing which can differ from the actual engine torque output over time. The new flexplate technology provides continuous real-time torque measurement allowing actual torque measurement on a per-vehicle basis for maximisation of engine efficiency.

GM is currently evaluating further applications of the technology for real-time vehicle control.

McLaren

The recent signing of the new Joint Development Agreement ("JDA") with McLaren Electronics provides a new route to market for the Company's range of SAW sensing IP. It is also a resounding endorsement of the sensing technology. The initial project is for use in a major US motorsport series and the Board are hopeful that the JDA will provide a series of joint projects over the coming years.

Wind Turbine Project

In a further new application of Transense's torque sensing solutions, the Company is now part of a consortium of nine companies ("IntelWind") that has begun development on a major EU funded project to improve the efficiency of wind turbines. Transense will receive a grant to develop SAW torque sensors for the large diameter shafts required for this project and the work required to integrate these sensors into the newly developed wind turbine designs. Involvement in this project came about as a result of work already underway with a major wind turbine gearbox design house. There is an increasing demand for wind turbine monitoring systems and Transense is positioning itself to exploit this emerging high value market as it develops. Additionally, the expertise gained during the technical development work on these much larger shafts has applications in many other markets, such as marine and power generation. The IntelWind consortium projects turnover accruing to Transense of £700k for the year commencing Q4 2013 rising to £2.1m in 2017.

IntelliSAW

Transense has established a new trading division, IntelliSAW. The new business has been established to develop and market SAW based wireless sensor systems for Smart-Grid applications.

Smart-Grid is the broad term used to describe technologies that provide intelligent control and monitoring of the electrical power grid. IntelliSAW leverages existing Transense IP and R&D investment and uses the Company's patented SAW interrogation electronics to provide a state-of-the art wireless temperature monitoring system, initially targeted at the Electrical Switchgear market. Having accurate, continuous, real-time temperature data instantaneously available at key points in the power transmission network provides power companies with early warning of potential problems. Failures within the network can have catastrophic consequences, causing significant damage, power outages and potentially fatal accidents.

Currently available switchgear monitoring solutions, whether wired, infrared or RF based, all have inherent drawbacks such as the potential for arcing or flashover, lack of continuous monitoring or the requirement for batteries or other direct power sources in an inherently unsuitable environment. The IntelliSAW system addresses all these drawbacks and offers a uniquely versatile, scalable and low maintenance solution that is easier to install and commission. The currently estimated annual global spend on power transmission and distribution projects is $20 billion, and anticipated to rise to $30 billion by 2015.*

The Board believes that the market opportunity for IntelliSAW is significant, and in line with the Company's revised strategy of seeking out new routes to market for its wireless & battery-less sensing technology to generate additional near-term income, IntelliSAW will provide another complementary revenue stream. In order for Transense to sell IntelliSAW products directly and increase its potential revenues significantly over and above those available as royalties, Transense has varied its licensing arrangements with Vectron.

As a key aspect of the IntelliSAW business the Company has been able to engage several experts in the SAW sensing field who were previously employed by Vectron, as members of the IntelliSAW team. These individuals bring strong application expertise specific to industrial markets such as Smart-Grid which will greatly assist the scalability of this business.

Translogik

iTrack

Field trials of the iTrack tyre temperature and pressure monitoring system for OTR vehicles, targeted at the mining and earthmover markets are continuing. Feedback from these trials proves the value of the system to operators, and several new uses of the system for managing vehicles have been identified. We have continued to customise and improve the system at the request of our trial partners and look forward to updating shareholders on progress in due course.

Further development has also been undertaken on the iTrack tyre sensors. The new sensor is an in-house design and offers an improved level of environmental resilience by being fully vapour proof.

Tyre Inspection tools

Sales of the Translogik range of tyre inspection tools have continued to grow, with several repeat orders from major customers such as Goodyear Dunlop, Bridgestone Europe and Pirelli.

A new version of the iProbe, the iProbe+ is now available, including a TPMS sensor reader as standard. The iProbe+ has the ability to "wake" third party TPMS sensors, greatly expanding its potential market.

 As well as broadening the product range, Translogik has been developing its partner network, and in conjunction with Budini Incorporated, a South American tyre management software developer, has developed an Apple approved application for iOS devices that integrates with all versions of the tyre inspection probe. This development work was undertaken at the request of a major tyre manufacturer, and required Translogik to attain Apple approved hardware developer status. Budini supplies its tyre management systems to all the major tyre manufacturers in South America and provides Translogik with a major new distribution partner in the region.

Outlook

By broadening the range of markets and applications for our technology and establishing our own trading companies, the Transense Group has transformed itself from being a company reliant solely upon licensee royalty revenue with little control over the timing of commercial adoption and limited earnings visibility, into a company with much greater control over its own future and selling products utilising the Company's technology and IP directly into the market. We believe this more diversified base puts the Company on a much sounder commercial footing and allows considerably more scope for future growth.

…

Graham Storey

CEO

30 September 2011

* According to market research conducted by Morgan Stanley

Notes to the Interim results for the six months to 30 June 2011

1 Accounting Policies

The accounting policies and presentation applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2010, except as noted below.

2 Reporting Entity

Transense Technologies plc ("the Company") is a company incorporated in the United Kingdom under the Companies Act 2006. These condensed consolidated interim financial statements of the Company as at and for the six months ended 30 June 2011 comprise the Company and its subsidiary (together referred to as "the Group" and individually as "Group entities"). These condensed consolidated interim financial statements are presented in pounds sterling, rounded to the nearest thousand.

The consolidated financial statements of the Group as at and for the year ended 31 December 2010 are available upon request from the Company's registered office or at www.transense.co.uk.

These condensed consolidated interim financial statements are unaudited and also available on the Company's website.

3 Going Concern

The interim financial information has been prepared on a going concern basis, which assumes that the Company will have adequate resources to continue in operational existence for the foreseeable future.

4 Corporation tax and Deferred tax

The Company is entitled to a Corporation Tax credit in respect of expenditure on Research and Development. No deferred tax asset is recognised in these financial statements in respect of trading losses to date.

5 Consolidated Accounts

These accounts reflect the trading of Translogik for the six months to 30 June 2011 

For more information, please contact:

Transense Technologies plc Tel: +44 (0) 1869 238 380

Graham Storey, Chief Executive

Brewin Dolphin - Nomad

Neil Baldwin Tel: 0845 213 4726

Hybridan LLP - Broker

Claire Noyce Tel: +44 (0) 207 947 4350

Notes to Editors

About Transense

Transense Technologies is a technology transfer company based in Upper Heyford, Oxfordshire, UK.

Transense develops Surface Acoustic Wave (SAW), wireless, battery-less, sensor systems in partnership with its licensees and partners, Honeywell, Melexis, Michelin, SenGenuity, Stack, Tai-Saw, Texas Instruments, SCHOTT, McLaren Electronic Systems and Carbon Motors.

Current applications include Tyre Pressure Monitoring Systems (TPMS) and torque systems for Electrical Power Assisted Steering (EPAS) and driveline management.

Transense is listed on the Alternative Investment Market of the London Stock Exchange (TRT)

www.transense.co.uk

For more information on IntelliSAW, please visit the website: www.intellisaw.com