Fundraising & Appointment

Traction Technology PLC
29 November 2007





                            Traction Technology Plc

                                  (AIM: TRAC)



      Appointment of Managing Director to Traction Technology (UK) Limited

                                and Fundraising


Traction Technology Plc ('Traction' or the 'Company'), a designer and deliverer
of environmentally friendly, low emission series diesel electric hybrid engine
systems, announces the appointment of Andrew Walmsley as Managing Director of
its sole operating subsidiary, Traction Technology (UK) Limited, with effect
from 3rd December 2007 and a fundraising of £524,220 before expenses.



Managing Director appointment



Mr Walmsley, aged 55, has over 15 years experience in the global automotive
industry.  He has a strong operations and commercial background with a
successful track record of delivering results mainly in the sports car and
engineering consultancy sectors. It is this experience that the Company is
looking to Andrew to bring to bear alongside the existing Directors and senior
employees to exploit the true potential of Traction and its hybrid engine
systems as the Company enters the commercialisation phase of its development.



Previously Mr Walmsley has been Group Commercial Director of Lola Cars
International Limited and Managing Director of Lola Automotive.  From 1999 to
2004  Mr Walmsley worked as both Project Director and then Managing Director of
McLaren Cars Limited where he was responsible for all aspects of McLaren Cars'
activities, in particular the Mercedes Benz SLR McLaren sports car project.
Prior to joining McLaren Cars Limited Mr Walmsley was at Cosworth Engineering
and Group Lotus.  Until recently Mr Walmsley was a board member and Vice
Chairman of the Automobile Division of the Institution of Mechanical Engineers.



Fundraising



The Company is pleased to announce that it has raised a total of £524,220 before
expenses by means of a placing of 2,184,249 new ordinary shares of 3p each ('
Shares') at a price of 24p per share. The funds raised through the placing will
be used to support the fulfillment of the Optare order announced on 19 November
2007 and further orders anticipated in the near future.



Andrew Walmsley has participated in the placing and application will be made for
the 2,184,249 new Ordinary Shares issued today, which will rank pari passu with
the existing Ordinary Shares, to be admitted to trading on AIM. Admission is
expected to occur on 3 December 2007.



Nick Brayshaw, Chairman of Traction, commented:

'We are very excited to be welcoming Andrew to the Company.  With his broad
experience in the automotive industry, especially with blue chip names such as
McLaren, Cosworth and Lotus, Andrew will play a key role in advancing the
manufacturing and distribution of Traction's hybrid engine systems.  Since we
now have a direct route into the market through our new agreement with Optare
announced recently, and further funds raised in this latest placing to support
our current working capital needs, Andrew's role will be crucial to the
Company's future success.'





For further information please contact:


Traction Technology Plc
Nick Brayshaw, Chairman                               [phone]
Bob Dover                                             [phone]

                                                      [phone]


Ambrian Partners Limited
Richard Brown/ Richard Greenfield                     [phone]

Parkgreen Communications Limited                      [phone]
Paul McManus                                          [phone]
                                                      [e-mail]




                      This information is provided by RNS
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