Final Results

Transense Technologies PLC
5 April 2002


On behalf of:     Transense Technologies plc

Date:     5 April 2002

Chairman's statement and

Preliminary Results 2001

                              Chairman's Statement

Your company has made good progress during 2001 towards achieving its goal of
developing its sensor technology to be the leading product in its application to
Tyre Pressure Monitoring (TPM). Success has also been achieved with the signing
of a licence agreement with TT Electronics for the application of our technology
to Electric Power Steering (EPS).

The market opportunities for licensing Transense Technologies' Intellectual
Property (IP) remain highly attractive in terms of size and profitability and we
remain confident in the successful outcome of our current research and
development programmes which include TPM, EPS, driveline and gyroscopic
positioning systems.

These programmes have involved increased costs during the year causing losses to
rise from £450,000 to £884,000. The increase in costs arises from adding to our
highly skilled team, who play a crucial part in the development programme and
from the doubling of spend on the protection of our IP rights, the key asset of
the Company, reflecting licence registration and patent costs.

Our partnership with Michelin and the licence they acquired from us is clear
evidence of the importance they place on our approach to TPM and the
pre-eminence of our technology. Further evidence was provided in February this
year when SmarTire, the first of our TPM licensees, demonstrated our application
on their stand at the Tire Technology Expo 2002 exhibition in Hamburg. They
announced that their 'Battery-less Solution', developed around Transense IP
under licence from us to them, represents a major industry innovation.

The American TREAD Act calls for all new vehicles manufactured from November
2003 to be equipped with TPM systems. The time period for compulsory compliance
will not significantly impact our plans as we did not anticipate that
Transense's technology would take part in the first or second generation TPM
applications employing batteries which are being applied ahead of legislation.
We do expect our technology will start to be used in vehicles at the end of this
year.

The Company's plans anticipated and allowed for changes in the licensee
programme. One such change involved Sawtek, which we had licensed for the supply
of SAW devices. Their acquisition by TriQuint Inc resulted in the exclusive
licence being cancelled and a non-exclusive arrangement being offered in its
place. A parallel development programme taking forward this aspect of the
technology has enabled us to source high quality SAW devices for our application
licensees. This will lead to a new licence deal.

The cash resources of the Company were strengthened during the year with the
placing of authorised shares for £2 million to an institutional shareholder. The
Company commences 2002 in a strong cash position, which will allow for the
continuing development of its technology without the prospect of further
recourse to shareholders.

We have made important management additions during the year with the appointment
of Mr Stephen Clarke, who is now Director of Legal Affairs. Stephen Clarke's
background, originally with Allen & Overy and later with GEC and TI Group,
provides the experience to manage the Company's important and growing legal and
licensing workload. Dr Raymond Lohr who was until recently Vice President
Research & Development of Instron/Schenk, one of the world's leading automotive
test equipment manufacturers, and Visiting Professor of Engineering at Oxford
University and Deputy Chairman of High Temperature Mechanical Testing Committee,
will be joining our Company as Technical Director on 1st May. Anthony Lonsdale,
who pioneered the technical development of the Transense technology, will remain
as a Director.

The salaries needed to attract and retain the high calibre of people needed
within Transense are far outside that which the Company could currently afford.
The only way we have been able to achieve this to date has been through the
issue of share options, which has left insufficient options under our present
unauthorised scheme to enable us to offer any worthwhile stake in the future of
the Company to new employees. One of the resolutions you will be asked to vote
on, being the allotment of further shares for grant under the Unapproved Share
Option Scheme, will overcome this problem.

It goes without saying that accepting share options, and sacrificing the large
salaries they could earn elsewhere, says a great deal about how those joining
the Company view its future.

Under Mr James Perry's leadership Transense Technologies, together with an
exceptionally talented team, has the skills and determination to succeed in this
highly competitive, but attractive market.

The market for the application of your Company's technology continues to offer
exciting opportunities. Good progress has been made in 2001 towards commercial
exploitation and I am confident that successful outcomes from the development
programmes will be reflected in this year's results.


Sir Dominic Cadbury

Chairman                                              4 April, 2002



                         Transense Technologies plc
                     Consolidated Profit & Loss Account
                     for the Year ended 31 December 2001
                                                                                   2001                             2000
                                                                                   £000                             £000
Turnover                                                                            191                              166
Cost of Sales                                                                       (6)                             (11)
Gross profit                                                                        185                              155
Administration expenses                                                         (1,216)                            (721)
Operating Loss
(including Long Term Provision no longer required
£nil (2000, £200,000))                                                          (1,031)                            (566)
Net interest income/(expense)                                                       113                              116
Loss on ordinary activities before taxation                                       (918)                            (450)
Taxation                                                                             20                                0
Loss on ordinary activities after taxation                                        (898)                            (450)
Minority interest                                                                    14                                0
Loss on ordinary activities after minority interest                               (884)                            (450)
Dividends                                                                          ---                               ---
Loss per share: Basic                                                            (1.8p)                           (1.0p)
Fully diluted                                                                    (1.7p)                           (0.9p)


                         Consolidated Balance Sheet
                             at 31 December 2001
                                                                                   2001                       2000
                                                                     £000          £000                  £000       £000
Fixed Assets                                                                      1,167                              942
Current assets:        Debtors                                        317                                 187
                       Cash                                         3,177                               1,746
                                                                    3,494                               1,933
Less: creditors falling due within one year                            71                                 147
Net Current assets                                                                3,423                            1,786
Total assets less current liabilities                                             4,590                            2,728
Capital & reserves:    Share capital                                              5,046                            1,171
                       Share premium                                              2,333                            3,443
                       Other capital reserve                                          0                                5
                       Profit & Loss account                                    (2,783)                          (1,899)
Equity Shareholders' funds                                                        4,596                            2,720
Minority interest - equity                                                          (6)                                8
                                                                                  4,590                            2,728


                           Transense Technologies plc
           Cash Flow Statement for the Year to 31 December 2001
                                                                                   2001                           2000
                                                                                   £000                           £000
Net cash outflow from operating activities                                       (1,166)                         (1,095)
Returns on investments and servicing of finance                                      113                             116
Capital expenditure and financial investment                                       (308)                           (266)
Sale of tangible fixed assets                                                         32                               0
Acquisitions and disposals                                                             0                            (25)
                                                                                 (1,329)                         (1,270)
Equity dividends paid                                                                  0                               0
Cash outflow before financing                                                    (1,329)                         (1,270)
Management of liquid resources
        Payments to short term deposits                                          (1,410)                         (1,720)
Financing
        Issue of new ordinary shares                                               2,760                           1,089
Increase/(decrease) in cash in the year                                               21                         (1,901)
Reconciliation of operating loss to net cash outflow from
operating activities
        Operating loss                                                           (1,031)                           (566)
        Depreciation, amortisation etc                                                63                              64
        (Profit)/loss on disposal of fixed assets                                   (12)                               8
        Net movement in current debtors & creditors                                (186)                           (401)
        (Decrease)/Increase in provision for liabilities and charges                   0                           (200)
                                                                                 (1,166)                         (1,095)
Reconciliation of net cash flow to movement in net debt
        (Decrease)/increase in cash in the year                                       21                         (1,901)
        Net funds at 1 January                                                        26                           1,927
        Net funds at 31 December                                                      47                              26

In addition £3,130,000 of cash (2000 £1,720,000) was held on short term deposit


Notes to the Preliminary results for the year 2001

 1. The Accounts

    The summary of results for the year to 31 December 2001 does not constitute
    statutory accounts within the meaning of Section 240 of the Companies Act
    1985. The full statutory accounts, which will be available to shareholders
    shortly, have been reported on by the Group's auditors but have not yet been
    delivered to the Registrar of Companies. Full accounts in respect of the
    year to 31 December, 2000 have been delivered to the Registrar of Companies
    and the Audit Report on these accounts was unqualified.

 2. The Annual report and the AGM

The Annual report and Accounts will be posted to shareholders at the end of
April and the Annual General Meeting will be held on 24 May 2002.



                         Ends

For further information, please contact:

Jim Perry, Chief Executive

Transense Technologies plc       01869 238 380

John Mellett

Graeme Bayley

HSBC                             0207 336 9000

John Coyle

Clerkenwell Communications       0207 713 0900

                                 07770 687 370

                                 07699 727 796 (pager)


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