AGM Statement

19 October 2006

                            SURFACE TRANSFORMS PLC                             

                                ('the Company')                                

                                 AGM Statement                                 

At the Annual General Meeting of the Company, to be held at 11:30 a.m today,
the Chairman will welcome Mr. Ken Baker, OBE to the board and he will make the
following statement:

"The Company, having completed the initial development, has begun the
installation of its carbon densification process, CVIST, to reduce the process
times and lower the manufacturing costs associated with the production of a
carbon ceramic brake disc. The installation is expected to be completed by the
end of the financial year and the value of the capital expenditure will be
approximately £250,000 before the application of grants. The net cost of the
expenditure, after grants are applied, is estimated to be £155,000.

The contract to supply brake discs to Koenigsegg Automotive, manufacturer of
CCX, the 860 hp Swedish supercar which holds the record as Europe's fastest
production car, is making satisfactory progress and deliveries since the
beginning of this financial year are running at approximately 2 car sets per
month. These brake discs are installed on the CCX as a factory fitted option.

Work continues with three UK automotive OEMs who build high performance cars
and recently an initial, small order was received from a US brake system
supplier for a carbon ceramic brake set which will be on test and display at
the SEMA Convention in Las Vegas later this month."

For a further summary report of questions and answers at the AGM:

Visit www.surface-transforms.comClick on Armshare and then on Company Review.

For enquiries please contact:Telephone:

Surface Transforms Plc 0151 472 3733

Kevin Johnson, Managing Director

John East & Partners Limited (Nomad) 020 7628 2200

Johnny Townsend

Simon Clements

Teather & Greenwood Limited (Broker) 020 7426 9000

Sindre Ottesen