Re Agreement

25 Jun 2007 07:00

25 June 2007 Surface Transforms plc ("Surface Transforms" or "the Company")

Surface Transforms signs a Supply & Distributor agreement with Movit GmbH

("Movit")

Surface Transforms, makers of high-technology carbon fibre reinforced ceramic (CFRC) materials for the aerospace, defence and high end automotive markets, has signed a supply and distributor agreement with Movit, www.movit.de, a leading European supplier of braking systems to the after-market industry. Movit is based in Achern, Germany and supplies its automotive clients within Germany through 45 sub dealers. It also has distributors in 21 other countries. Last year Movit installed steel based brake disc systems onto over 2,000 high performance cars.

Movit was established in 1994 and its core product range comprises brake systems, based on high value steel brake discs. Movit will act as a distributor of System ST ceramic brake discs to the automotive tuning aftermarket in Europe. Surface Transforms expects to generate at least ¢â€š¬150,000 of sales during the first two years of the contract, equivalent to approximately 25 cars per annum. To date, Movit has ordered approximately ¢â€š¬31,000 worth of ceramic brake discs, the majority of which will be delivered over the next 30 days. The principal market for these specialist brakes sets are high-performance vehicles, fast heavy road cars and light race cars, for which their owners are seeking significantly enhanced braking performance.

Guido Frensemeyer owner and Managing Director of Movit GmbH, said:

"After many years of research and vehicle trials of ceramic rotors we believe that with System ST we now have a unique solution to take to the European automotive after-market. We are very excited about the prospects that this agreement offers"

For enquiries, please contact:

Surface Transforms plc Tel: +44 (0) 151 356 2141Antoni Sznerch, Business Development Director Dr Kevin Johnson, Managing Director

Movit GmbH Tel: +49 7841 50880Guido Frensemeyer John East & Partners Limited Tel: +44 (0) 20 7628 2200Simon Clements Teather & Greenwood Limited Tel: +44 (0) 20 7426 9000Sindre Ottensen

Details of the Company's business and financial performance and its share price can be found on www.armshare.com which is accessed from the Armshare icon on www.surface-transforms.com