Re Contract

9 Mar 2005 08:39

Surface Transforms PLC09 March 2005 RNS Release 9 March 2005 Surface Transforms signs second contract with METEK Surface Transforms plc, makers of high-technology carbon fibre reinforcedceramic (CFRC) materials for the aerospace and high end automotive markets, hassigned a further contract with METEK (Metallverarbeitung GmbH), a leadingEuropean supplier of braking systems to the automotive industry. The new METEKcontract is in addition to the one Surface Transforms announced on 28 June 2004. Under the terms of the new two-year contract, METEK will act as a distributor ofSystemST brake sets to the automotive tuning aftermarkets in France, Germany,Austria and Switzerland. Surface Transforms expect to generate at least Euro 200,000 of sales in the first two years. The principal market for thesespecialist brake sets are high-performance vehicles, for which their owners areseeking significantly enhanced braking performance. METEK believes that the annual automotive tuning aftermarket in Germany, whichis the largest in Europe, is estimated to consume approximately 4.4 millionsteel discs per annum. Surface Transforms estimates that the target market forcarbon ceramic brake discs would be approximately 5% of the steel disc market,equivalent to around 200,000 ceramic discs per year with potential revenue inthe order of Euro 200 million p.a. Julio Faria, Managing Director of Surface Transforms, said: "Based on the level of orders and enquiries received at the launch of ourSystemST automotive brakes in Essen late last year, there is strong appetiteamong performance car owners for carbon ceramic brakes. People are increasinglyaware that carbon ceramic brakes provide the most efficient stopping performanceavailable, while enhancing vehicle handling characteristics and acceleration, byvirtue of being some 70% lighter than traditional steel brake discs. We aredelighted to have signed this latest contract with METEK and we are continuingto seek and develop additional partners and contracts for the rest of theEuropean automotive aftermarket." For enquiries, please contact: Surface Transforms plc Gresham PR Ltd.Julio Faria 01928 735 498 Neil Boom 020 7404 9000Kevin D'Silva 07802 306956 Details of the Company's business and financial performance and its share pricecan be found on www.armshare.com which is accessed from the Armshare icon onwww.surface-transforms.com This information is provided by RNS The company news service from the London Stock Exchange