Koenigsegg AB Supply Agreement

Embargoed: not to be released until 7.00am on

                                                                  16 March 2006

                            Surface Transforms plc                             

                    ('Surface Transforms' or 'the Company')                    

                Supply Agreement with Koenigsegg Automotive AB                 

Surface Transforms plc, the manufacturer of carbon fibre reinforced ceramic
(CFRC) materials, is pleased to announce the signing of an agreement to supply
high performance, carbon ceramic automotive brake discs and components to
Koenigsegg Automotive AB ('Koenigsegg') of Sweden.

Based in Angelholm, Koenigsegg is an established European manufacturer with a
ten year history of producing high performance supercars. Koenigsegg has a
number of models in its product range with the most recent being the CCX, which
it launched at the 2006 Geneva Motor Show earlier this month. The list prices
of the cars are high, with the CCX typically selling for over €450,000 each -
the unique Koenigsegg engine produces over 800bhp with a 0-100 kph acceleration
of 3.2 seconds. The CCX can be fitted with SystemST ceramic brakes as an option
but Koenigsegg are of the view that most of its buyers will choose the new
ceramic brake system.

This supply agreement is for an initial term of 12 months with a 3 month notice
clause, and it has an annual value of up to £131,000. Ceramic brakes are also
being offered as an upgrade option to all pre-CCX model owners of Koenigsegg's
cars.

The Company's strategy is to be a pre eminent supplier of carbon ceramic disc
brakes to the leading manufacturers of high performance cars. SystemST has been
under development for over five years and the technical results show that these
ceramic carbon brakes have superior braking, wear and surface corrosion
characteristics when compared to `old' cast iron technology. SystemST typically
reduces the unsprung weight of car by approximately 20 kgs when compared to its
iron equivalent. This can lead to an improvement in fuel economy and a life
span five times longer than iron disc brakes.

Technical data and car case histories are available and user enquiries managed
on www.systemST.co.uk.

Dr.Kevin Johnson, Managing Director of Surface Transforms plc, said:

'This agreement represents a very welcome certification of SystemST carbon
ceramic brakes from a formidable designer and manufacturer of some of Europe's
most exciting supercars.'

Christian Koenigsegg, founder and Managing Director of Koenigsegg AB, said:

`We have worked closely with the Surface Transforms` teams to produce an
exceptional ceramic brake system which further enhances our car's performance.'

For enquiries, please contact:

Surface Transforms plc 0151 3737130

Dr. Kevin Johnson

Mr. Antoni Sznerch

John East & Partners Ltd (Nomad) 0207 628 2200

Simon Clements, Johnny Townsend

Teather & Greenwood (Broker) 0207 426 9000

Mark Dickenson, Sindre Ottesen

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. A webcast of the 2005 results is also available on 
www.surface-transforms.com/Investor and Media relations.