Final Results

Transense Technologies PLC
22 March 2005

Transense Technologies plc - Final Results

22 March 2005



2004 was another excellent year for Transense with our technology base
significantly enriched and our routes to commercialisation materially
strengthened.  This represents a powerful step change for the Company and bodes
well for our shareholders over the long term.

I am pleased to report that with licence fees, engineering projects support, and
a small royalty contribution, our turnover last year rose 115% to £563,000.   At
the same time, our running overheads reduced from £1,432,000 to £1,358,000, with
virtually all activities lower than last year.  This left us with a reduced loss
for the year of £683,000 compared with £1,077,000 in 2003.

We continued to broaden our valuable intellectual property base and now have 20
granted patents (14 last year) along with 35 applications against 21 previously.
The costs of these new additions, and maintenance of those already granted,
came to £136,000 against £164,000 in 2003.

Our patent coverage now spans all the main constituent parts that make up our
tyre pressure monitoring system (TPMS) and Torque systems, from the surface
acoustic wave (SAW) devices and packaging to electronic interrogation and
antennas, to the application specific integrated circuit (ASIC), which was
delivered last November.  I am pleased to report that it is already working well
and has only a limited number of small changes needed before it can go into full
production.  Our technicians continue to impress us with their inventiveness and
tenacity in making sure that our technology will be protected for many years to
come.

The most significant event during 2004 was undoubtedly the signing of a
substantial further licence agreement with Honeywell.  Apart from a healthy
series of up-front payments the credibility and confidence this transaction,
with one of the world's largest sensor manufacturers, affords to Transense is
very significant.  Large automotive manufacturers need to be convinced that, at
the end of a long process of proving out the technology, there is an acceptable
Tier 1 supplier who can supply it in volumes at the highest automotive quality
standard.  It is not only the size and reputation of Honeywell but their ability
to manufacture and market complete systems that is such a powerful change in
support of Transense's technology.  Honeywell are now vigorously promoting SAW
technology.

As a result of our growing relationship with Honeywell, and the increased
confidence emanating from it, the stage is now set for the step change we had
been anticipating.  I can reveal that from this strengthening we now have
programs running with three of the top four car companies in the world, plus a
further two major Tier 1 suppliers for powertrain torque applications.

The funded torque driveline demonstration project, which I referred to last year
and which is included in the above, has started very well with the initial trial
exceeding expectations.  We anticipate that a follow on project, to take the
application to the next stage, will start shortly.

Our original lead customer for electric power steering systems has been awaiting
the availability of the ASIC, but working ASIC meetings have now been arranged
for April.  Meanwhile two much larger potential customers are also showing a
keen interest, one of which has already identified a car platform, which our
transducer would suit, which is scheduled for volume supply in model year 2008.

We have now finished our TPMS engineering development program for commercial
vehicle applications on behalf of a major licensee and we are advised that a
production batch of sensors has been ordered for delivery in 2005.  We have also
been informed that this same licensee has demonstrated our SAW technology to
passenger car manufacturers.

In addition to the above, we have now agreed with three of the world's leading
car companies to provide, in 2005, demonstration cars and trucks equipped with
our tyre pressure technology.  Some of these will be made available to the
National Highway Traffic Safety Authority (NHTSA).  This organisation, charged
with implementing the US Federal Tread Act, is requiring fitment of TPMS to all
vehicles up to 10,000 lb weight (including passenger cars) starting September
2005.  Along with the help of Honeywell and another large US Tier 1 supplier
(currently supplying battery TPMS systems), this will open up another channel to
commercialise our world beating technology.  The ongoing plan is that the
demonstration vehicle type will implement Transense's TPMS technology from model
year 2007.

Strengthened routes to commercialisation include assisting our licensee Tai-Saw
in qualifying at the very highest standard as a supplier in China to Honeywell;
particularly important as we were also working with Honeywell on the TPMS sensor
for volume production at Honeywell's Intellesense plant in China.

Also, with licensee Temex, we developed the production version of the torque SAW
for Honeywell to package.  A significant step for the torque sensor was the
development of a dedicated adhesive with a North American specialist adhesive
manufacturer which fixes the torque SAW in the sensor, and the sensor to the
metal component eliminating welding or soldering.

Another route to market will be through our agreement with Stack, which is well
known in Formula 1 racing circles.  The strategy is to introduce our technology
in one of the leading race teams during the 2005 racing season.  F1 is an
extremely hostile environment and will prove an excellent testing platform for
SAW sensors, which should help to open the door to leading European car
manufacturers.

Transense has, in line with accounting practice, followed a path of writing
down, or showing its assets at costs.  This is now having the effect of reducing
our net assets below 50% of our issued capital - a topic that will be addressed
at the AGM.  However, in the opinion of your directors, the Company's intangible
assets are worth well in excess of their book value.  This is borne out by the
licence agreements we have already entered into.

You will recall that last year shareholders agreed to our workforce being
granted further options to reflect all the effort they have put into the Company
over the years.  We are now asking you to agree to new options being granted to
the directors who also have seen the benefit of existing options being eroded
over the course of time.  The Remuneration Committee is conscious of the fact
that salary levels are low in comparison with like businesses and, based on the
performance conditions attached to these new options, we feel that both
shareholders and directors will benefit.

We continue to watch the market carefully for strategic partners to strengthen
our competence, broaden our product offering, reduce financial risk and improve
revenue and profit growth potential.

On behalf of the Board I would like to thank all in the Transense team for their
persistence, ingenuity and very hard work over the past year.  The market for
Transense's intellectual property rights continues to be highly attractive.

P.J. Woods
Chairman




Profit & Loss Account for the year to 31 December 2004
                                                                                2004              2003
                                                                                £000              £000
Turnover                                                                         563               262
Cost of Sales                                                                   (42)              (45)
Gross Profit                                                                     521               217

Administration expenses                                                      (1,358)           (1,432)

Operating Loss                                                                 (837)           (1,215)

Net interest income                                                               54                56

Loss on ordinary activities before taxation                                    (783)           (1,159)

Taxation                                                                         100                82
Loss on  ordinary activities after taxation                                    (683)           (1,077)

Dividends                                                                          -                 -

Loss per share                                                                (1.3p)            (2.1p)






Balance Sheet at 31 December 2004
                                                          2004             2004             2003             2003
                                                          £000             £000             £000             £000
Fixed Assets                                                              1,579                             1,492

Current assets:
Debtors                                                    590                               141
Cash                                                     1,161                             2,071
                                                         1,751                             2,212
Less: creditors falling due within one year                242                               112

Net Current Assets                                                        1,509                             2,100

Net Assets                                                                3,088                             3,592


Capital & reserves
Share capital                                                             5,376                             5,319
Share premium                                                             3,473                             3,351
Profit & Loss account                                                   (5,761)                           (5,078)
Shareholders' funds                                                       3,088                             3,592





               Cash Flow Statement for the Year to 31
               December 2004
                                                                                      2004                       2003
                                                                      £000            £000             £000      £000
               Net cash outflow from operating activities                          (1,079)                     (1,128)

               Returns on investments and servicing of                                  54                         56
               finance

               Taxation - Corporation tax received                                     100                        134

               Capital expenditure and financial                                     (164)                       (222)
               investment
               Cash outflow before financing                                       (1,089)                     (1,160)

               Management of liquid resources
               Receipts from / (payments to) short term                850                            (250)
               deposits
               Proceeds from sale of net current asset                   -             850               91      (159)
               investment

               Financing - issue of new ordinary shares                                179                      1,291

               Decrease in cash in the year                                           (60)                        (28)

               Reconciliation of operating loss to net
               cash outflow from operating activities
               Operating loss                                                        (837)                     (1,215)
               Depreciation, amortization etc                                           77                        132
               Profits on disposal of fixed asset and                                    -                        (41)
               current asset investment
               Net movement in current debtors &                                     (319)                         (4)
               creditors
               Net cash outflow from operating activities                          (1,079)                      (1,128)


               Reconciliation of net cash flow to
               movement in net funds
               Decrease in cash in the year                                           (60)                         (28)
               (Increase) / decrease in cash flow from                               (850)                         159
               liquid resources
               Change in net funds resulting from cash                               (910)                         131
               flows
               Gain on sale of current asset investment                                  -                          40
               Movement in net funds in the year                                     (910)                         171
               Net funds at 1 January                                                2,071                       1,900
               Net funds at 31 December                                              1,161                       2,071


               Analysis of net funds                                                Liquid             Cash      Total
                                                                                 resources
                                                                                      £000             £000       £000
               At 1 January                                                          1,950              121      2,071
               Cash flow                                                             (850)             (60)       (910)
               At 31 December                                                        1,100               61      1,161


Notes to the Preliminary results for the year 2004

1.       The Accounts

The summary of results for the year to 31 December, 2004 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, 2003 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 the end of
April and the Annual General Meeting will be held on 20 May, 2005.

For further information please contact:

Transense Technologies plc                                 01869 238380
Jim Perry, Chief Executive
Graham Eves, Commercial Director


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