Final Results

Transense Technologies PLC
30 March 2007

Transense Technologies PLC ('Transense')

Preliminary results for the year ended 31 December 2006



Chairman's Statement



Our results for the year show a 9% increase in turnover to £604,000 but a loss
for the year of £1,210,000, an increase of £164,000 over the restated loss of
£1,046,000 in 2005. One of the reasons for this is the new accounting standard
which requires the Company to make a charge to the profit and loss account for
share options. The calculated expense, which was £72,000 higher than last year,
is £244,000. Because this sum is non cash it is credited to reserves and has no
effect on the balance sheet.



In addition, following a detailed review, we have incurred a special £178,000
patent cost amortisation charge. Whilst continually updating our relevant
patents, we have eliminated those patents which are no longer of use, and
restricted those remaining to the geographic areas in which we shall earn our
income. The effects will be to reduce the cash costs of maintaining the patents
as well as incurring lower amortisation charges.



As ever this intellectual property is the foundation of our licence deals and
growth in shareholder value. We now have 20 granted patents and 12 new patent
applications in progress, as well as six trade mark and design registrations.



The past year was very eventful indeed especially in the second half when in
November Michelin announced it was marketing our tyre pressure monitoring
technology (TPMS) in commercial vehicle tyres under the name e-tire 2. This is
the first time our SAW technology has been commercialised after many years of
research and development. The existing programs we have on engine torque
measurement are now at an advanced stage, with one company in particular having
completed faultless dynamometer testing equivalent to circa two years of
driving. Testing is now taking place in-vehicle and so far the reports are
extremely good.



The North American vehicle manufacturers have reacted very positively to SAW
torque sensors and have indicated that they out-perform other forms of torque
sensors proposed for production fit to cars. A USCAR independent assessment
project carried out during 2006 recently confirmed the excellent performance of
SAW sensors applied to automatic transmission output torque sensing. Both
DaimlerChrysler and Ford now have granted US Patents which mention the use of
SAW torque sensors. A further torque program with a major European group is also
well underway and the reports we are receiving back are also positive. Honeywell
is actively promoting SAW torque sensors with a view to early volume supply.



Last year we mentioned that we were working with a South African company to put
our sensors into its Intelliband product. This program has taken longer than
planned, but one of our engineers is in South Africa to progress the development
of Intelliband with our TPMS technology.



We are at an advanced stage with another customer to incorporate our TPMS into
their existing car-monitoring black box, but we still need to sign a
satisfactory agreement before we can proceed further.



Our relationship with Lear has started with considerable confidence and our
joint teams of engineers are co-operating well. I can reveal that together we
have already demonstrated our TPMS technology in vehicles to two of the leading
car manufacturers in Europe. These demonstrations were well received and more
are actively being arranged for other manufacturers throughout the world.



Many shareholders will be aware that our working relationship with Honeywell
goes from strength to strength and that we have granted them a non-exclusive
licence to use our pressure SAW technology in fields outside the automotive
industry. Honeywell are the largest manufacturers of pressure sensors in the
world and see SAW sensors extending the horizon in this marketplace.



As the markets for tyre pressure monitoring and torque grow exponentially, more
and more companies, much larger than us, are trying to join the race. From
experience we know that, from the time of concept reporting to a fully working
technology, it takes many years to obtain acceptance in the markets with which
we are dealing.  Most of the so-called breakthroughs that are announced never
see the light of day and, as far as we and our associates are concerned, there
is nothing without a battery threatening us yet.



We will once again update our product presentation at the AGM and on our web
site to give you the best possible view of future progress by project. Last year
we anticipated commercial TPMS starting end 2006 and car TPMS and Torque
starting during 2008 with clearly the thrust of revenue growth likely to develop
in 2009 and beyond. As we always point out, the marketing and ramp-up of volume
production of our technology is in the hands of our licensees. They are far
larger than Transense and have their own internal confidential timescales, which
makes it difficult to predict when royalties are likely to flow in a major way.
However we are now more convinced that large revenues will develop over the
medium term.



As we approach our goals we are constantly aware that extra hands will be needed
to help us on our way and strengthen our management team. With this in mind I am
pleased to inform you that Rodney Westhead has agreed to join the board of
Transense as a non-executive director. Rodney is a Chartered Accountant by
training and until 2005 was Chief Executive of Ricardo, the major Automotive
consulting engineering group with sales of £150 million a year.



I can also report that we have appointed Noble & Company Limited as our
Nominated Advisor and broker. I would like to thank Bridgewell for all the
advice they have given us over the years and also KBC Peel Hunt for their input
as joint brokers to our company.



Many thanks to all the Transense team for their excellent supportive work and
responses over the past year.



Finally last year we described the future advent of electronic proxy voting. For
those who wish to use this facility, please see the details in the AGM notes of
the Annual Report which will be issued by end April.


Peter Woods                                                     March 29th 2007
Chairman


                                Transense Technologies plc
              Profit & Loss Account for the Year to 31 December, 2006
                                                                 2006                                           2005
                                                                                                       (restated see
                                                                                                             Note 2)
                                                                 £000                                           £000
Turnover                                                          604                                            553
Cost of sales                                                    (52)                                           (85)
Gross profit                                                      552                                            468

Administrative expenses                                       (1,966)                                        (1,672)

Operating loss                                                (1,414)                                        (1,204)

Net interest income                                                90                                             58

Loss on ordinary activities before taxation                   (1,324)                                        (1,146)

Taxation                                                          114                                            100
Loss for the year                                             (1,210)                                        (1,046)

Loss per share                                                 (2.1p)                                         (1.9p)

                                         Balance Sheet at 31 December, 2006

                                                                 2006                                           2005
                                                        £000     £000            £000                           £000
Fixed assets                                                    1,655                                          1,665

Current assets:      Debtors                             664                      598
                     Cash                              1,390                    2,399
                                                       2,054                    2,997
Less: Creditors falling due within one year              288                      288

Net current assets                                              1,766                                          2,709

Net assets                                                      3,421                                          4,374

Capital and reserves:
                     Share capital                              5,646                                          5,641
                     Share premium                              5,376                                          5,368
                     Profit and loss account                  (7,601)                                        (6,635)
Shareholders' funds                                             3,421                                          4,374


                                               Transense Technologies plc
                                  Cash Flow Statement for theYear to 31 December, 2006
                                                                                        Year                   Year
                                                                                        2006                   2005
                                                                                                  (restated see Note 2)
                                                                                        £000                   £000
Net cash outflow from operating activities                                             (944)                  (912)

Returns on investments and servicing of finance                                           90                    58

Taxation    Corporation tax received                                                     114                   100

Net capital expenditures                                                               (282)                  (168)
Cash outflow before management of liquid resources
            and financing                                                            (1,022)                  (922)

Management of liquid resources
            Receipts from / (payments to) short term deposits                          1,015                 (1,200)

Financing   Issue of new ordinary shares                                                  13                  2,160

Increase in cash in the year                                                               6                    38

Reconciliation of operating loss to net cash outflow from
operating activities
            Operating loss                                                           (1,414)                 (1,204)
            Depreciation and amortisation                                                292                    87
            Charge on share option schemes                                               244                   172
            Profit on disposal of fixed asset                                              0                   (5)
            Net movement in current debtors and creditors                               (66)                    38
Net cash outflow from operating activities                                             (944)                  (912)

Reconciliation of net cash flow to movement in net funds
            Increase in cash in the year                                                   6                    38
            Cash (inflow) / outflow from changes in liquid resources                 (1,015)                  1,200
            Movement in net funds in the year                                        (1,009)                  1,238
            Net funds at 1 January                                                     2,399                  1,161
            Net funds at 31 December                                                   1,390                  2,399

Analysis of net funds                                                                 Liquid
                                                                                   resources         Cash     Total
                                                                                        £000         £000      £000
            At 1 January                                                               2,300           99     2,399
            Cash flow                                                                (1,015)            6    (1,009)
            At 31 December                                                             1,285          105     1,390



Notes to the Preliminary results for the year 2006

1.      The summary of results for the year to 31 December, 2006 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 Company's auditors but have not yet been
delivered to the Registrar of Companies.  Full accounts in respect of the year
to 31 December, 2005 have been delivered to the Registrar of Companies and the
Audit Report on these accounts was unqualified.



2.      Administrative expenses includes a charge of £244,000 (2005 £172,000)
after valuation of the Company's employee share option schemes in accordance
with Financial Reporting Standard 20.  The 2005 comparative figures have been
adjusted accordingly.  These items have been added back in the statement of
Movement in shareholders' funds in the financial statements.  There are no other
recognised gains or losses for the current and prior year.



3.      The amortization charge of £275,000 (2005 £56,000) includes £178,000,
which eliminates all patents that are no longer of use, and limits the
constructive patents to the geographical areas in which royalty income will be
earned.



4.      No deferred tax asset is recognised in these financial statements in
respect of trading losses to date.



5.      The Annual Report and Accounts will be posted to shareholders by the end
of April and the Annual General Meeting will be held on 24 May, 2007.




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