Final Results

Transense Technologies PLC
28 March 2003



Date:                      28 March 2003

On behalf of:              Transense Technologies plc

Embargoed until:           0700hrs





TRANSENSE TECHNOLOGIES PLC

Preliminary Results for the Year Ended 31 December 2002





CHAIRMAN'S STATEMENT



Transense recorded a loss of £1.2m in 2002, £318,000 more than in 2001.  This
was due to increased technical staff and patent costs.  We now have 20 full-time
employees compared with 15 last year and we spent £183,000 on existing and new
patent applications compared with £126,000 in 2001.  We now have 6 granted
patents and 25 new applications, which is a clear indication of the innovative
strength of the Transense development team.  We finished the year with cash
reserves of £1,850,000, which gives us adequate funding for at least another 12
months.



The expectation that we would earn royalty revenue early in 2003, which I
reported in my 2002 Interim Statement has not been achieved.  In February 2003
we informed shareholders of Michelin scaling back their testing programme of our
Tyre Pressure Monitoring Systems ('TPMS') which we had expected to represent
material production volumes and generate significant royalty income.  The test
programme in question is now based on substantially smaller volumes which
Michelin has indicated reflects a reduction in their perception of the technical
risk involved.



While this delay to achieving royalty income is a setback, it does not reflect a
reduction in interest in your Company's TPMS technology on the part of Michelin
or our other principal licencees.



We continue to work closely with Michelin, the leading tyre manufacturer in the
world, on commercial vehicle applications. An indication of Michelin's continued
confidence in our SAW technology is that it is now fully funding a Transense
developed drive-by interrogator and will make limited cash advances to your
Company in lieu of royalties in early 2004, supporting your Board's view that
volume production of TPMS is likely to commence in late 2004.



Further progress has been made on Electric Power Steering ('EPS') systems using
our technology.  Our team has designed and had manufactured an innovative SAW
device for which another patent application has been taken out.  On the basis of
tests carried out, we have confidence that it will form a future revenue source
for us.



Negotiations are in progress with a number of potential new licensees for both
TPMS and EPS applications and it is hoped that a number of these will reach
successful conclusion during 2003.



I would like to take this opportunity to welcome Jon Pither to the Board as a
non-executive director.  Jon has spent many successful years in building and
advising small companies and dealing with major City institutions.  His
experience in such matters will contribute to the broad expertise of your Board.
In recognition of Jon's appointment he has been granted 50,000 share options
under the Company's Unapproved Share Option Scheme, exercisable for two years
from March 2006, at a price of 26 pence per share.  Unfortunately, as Jon joins
us, Stephen Clarke is leaving.  Stephen's contribution whilst he was with the
Company will stand it in good stead and I wish him every success in the future.



On behalf of the Board I would like to thank all members of our highly talented
team for the very real progress that has been made in the past year.  Because of
the non-disclosure agreements we have signed with our licensee companies we
cannot report on the detail of the progress our team are making in respect of
our licensed technology, but they have a firm commitment to its implementation
and the market for the application of your Company's technology continues to
offer exciting opportunities.





Sir Dominic Cadbury
Chairman
28 March 2003




CONSOLIDATED PROFIT & LOSS ACCOUNT
For the year to 31 December 2002


                                                                                       2002             2001
                                                                                      £'000            £'000
Turnover                                                                                112              191
Cost of Sales                                                                          (27)              (6)

Gross profit                                                                             85              185
Administration expenses                                                             (1,449)          (1,216)

Operating Loss                                                                      (1,364)          (1,031)
Net interest income                                                                     100              113

Loss on ordinary activities before taxation                                         (1,264)            (918)
Taxation                                                                                 52               20

Loss on ordinary activities after taxation                                          (1,212)            (898)
Minority interest                                                                        10               14

Loss on ordinary activities after minority interest                                 (1,202)            (884)

Dividends                                                                                 0                0
Loss per share: Basic                                                                (2.4p)           (1.8p)
                Fully diluted                                                        (2.4p)           (1.7p)





CONSOLIDATED BALANCE SHEET
at 31 December 2002


                                                                     2002                              2001
                                                   £'000            £'000            £'000            £'000
Fixed Assets                                                        1,433                             1,167
Current assets: Debtors                              269                               317
                         Investments                  51                                 -
                         Cash                      1,850                             3,177

                                                   2,170                             3,494
Less: Creditors falling due within one year          175                                71

Net Current assets                                                  1,995                             3,423

Total assets less total liabilities                                 3,428                             4,590

Capital & reserves: Share capital                                   5,066                             5,046
                    Share premium                                   2,363                             2,333
                    Profit & Loss account                         (3,985)                           (2,783)

Shareholders' funds                                                 3,444                             4,596
Minority interest                                                    (16)                               (6)
                                                                    3,428                             4,590



CONSOLIDATED CASH FLOW STATEMENT
For the year to 31 December 2002


                                                                                     2002               2001
                                                                                    £'000              £'000
Net cash outflow from operating activities                                        (1,096)            (1,166)

Returns on investments and servicing of finance                                       100                113

Taxation UK Corporation tax                                                            20                  0

Capital expenditure and financial investment                                        (351)              (276)

                                                                                  (1,327)            (1,329)
Disposals and (acquisitions)                                                            0                  0
Equity dividends paid                                                                   0                  0

Cash outflow before management of liquid resources and financing                  (1,327)            (1,329)

Management of liquid resources
Receipts from/(payments to) short term deposits                                     1,430            (1,410)

Financing  Issue of new ordinary shares                                                 -              2,760

Increase in cash in the year                                                          103                 21

Reconciliation of operating loss to net cash flow from
operating activities
     Operating loss                                                               (1,364)            (1,031)
     Depreciation, amortisation                                                        85                 63
     (Profit)/loss on disposal of fixed assets                                          -               (12)
     Decrease/(increase) in debtors                                                    79              (110)
     Increase/(decrease) in creditors                                                 104               (76)

     Net cash outflow from operating activities                                   (1,096)            (1,166)

Reconciliation of net cash flow to movement in net funds
     Increase in cash in the year                                                     103                 21
     (Decrease)/increase in cash flow from liquid resources                       (1,430)              1,410
     Change in net funds resulting from cash flows                                (1,327)              1,431
     Conversion of trade debtor into current asset investment                          51                  -

     Movement in net funds in the year                                            (1,276)              1,431
     Net funds at 1 January                                                         3,177              1,746

     Net funds at 31 December                                                       1,901              3,177





Notes to the Preliminary Results for the Year 2002





1.             The Accounts

The summary of results for the year to 31 December 2002 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
2001 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 by 17 April, and
the Annual General Meeting will be held on 23 May 2003.





For further information,  please contact:


Jim Perry, Chief Executive                          Tel:  [phone]
Transense Technologies plc

Emma Kane/Katharine Sharkey                         Tel:  [phone]
Redleaf Communications Ltd                          Mob:  [phone]




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