Interim Results

Transense Technologies PLC
4 September 2001


On behalf of:     Transense Technologies plc
Date:             4 September 2001

Chairman's Statement and Interim Results
For the six months to 30 June 2001

The interim figures we report today, showing a loss of £529,000, are in line 
with market expectations and our budget and development plans.

Of particular significance to Transense in this period has been the signing of a
worldwide licence with Societe de Technologie Michelin, giving them exclusive 
rights to embed our SAW ('surface acoustic wave') sensor technology into 
automotive and aircraft tyres.

Along with SmarTire and 3DMI we have now signed licence agreements for our 
technology covering on-the-wheel, in-the-wheel and in-the-tyre applications.  
Opportunities continue to exist with other suppliers in the automotive industry 
for tyre pressure measurement.

As you will be aware, the driving force behind tyre pressure monitoring has been
the recall of over 20 million Firestone tyres.  This led to the American 
Government passing the TREAD Act which will require all new vehicles sold in the
USA from November 2003 to be equipped with tyre pressure warning systems.  We 
have read the first test results of the National Highway Traffic Safety 
Administration on existing and prototype systems already in the market which 
reinforces our belief that Transense's technology has the potential to become 
one of the world leaders in this application.

In addition, we have continued the development of products for potential 
licensees in other applications and have added to our small workforce to cater 
for the increased demands being put upon us.  This includes two new physicists 
whose task is to shorten the lead-time needed in writing the software and 
electronic simulation packages required in developing our customers' 
applications.


As we increase our workforce and continue to file new patent applications to 
protect our technology, costs are expected to increase.  As such, administrative
expenses have increased from £388,000 in the six months to 30 June 2000 (before 
release of a long term provision) to £634,000 in the six months to 30 June 2001.
Further one-off costs have been incurred in moving into larger premises on the 
same Upper Heyford site.  These new premises will provide better facilities and 
room for expansion at a cost which compares favourably to that which we were 
paying previously.  The expenditure is, however, in line with our projections 
and cash reserves remain satisfactory.

Your Board continues to work to ensure that risks are minimised with regard to 
the commercialisation of products exploiting Transense licences.  To this end, 
we are working with appropriate parties to ensure that procedures are in place 
to enable all the necessary components and processes relating to licences to be 
developed in an appropriate manner and timeframe.

Given the level of economic uncertainty globally and in particular in the US, we
are seeking to mitigate risks in production processes relating to products that 
exploit existing Transense licences, including working with and granting 
licences to additional and geographically diverse product manufacturers.

Transense has a range of interesting projects in development and, as soon as 
further licence agreements are signed, shareholders will be informed.

Sir Dominic Cadbury
Chairman



For further information, please contact:

Jim Perry, Chief Executive
Transense Technologies plc                         01869 238 380

John Mellett / Graeme Bayley
HSBC Investment Bank plc                           020 7336 9000

John Coyle
Clerkenwell Communications                         020 7713 0900
                                                   07770 687 370
                                                   07699 727 796 (pager)



Consolidated Profit &. Loss Account for the 6 months to 30 June 2001


                                                        6months      6months    
                                                     to 30 June   to 30 June
                                                           2000         2001
                                                           £000         £000

Turnover                                                      6           43

Cost of sales                                                (3)          (2)

Gross profit                                                  3           41

Administration expenses                                    (188)        (634)

Operating loss
(including long term provision 
no longer required £nil (2000: £200,000))                  (185)        (593)

Interest income                                              56           55

Loss on ordinary activities before taxation                (129)        (538)

Taxation                                                      -            -

Loss on ordinary activities after taxation                 (129)        (538)

Minority interest                                             -            9

Loss on ordinary activities after minority interest        (129)        (529)

Dividends                                                     -            -

Loss per share: Basic                                     (1.2p)       (4.3p)

Fully diluted                                             (1.0p)       (4.1p)



Consolidated Balance Sheet at 30 June 2001

                                  31 December 2000      30 June 2001  
                                        £000                £000

Fixed assets                                    934                      1,044
Current assets

              Debtors            187                    198
              Cash             1,746                  1,771
                               1,933                  1,969

Current liabilities

              Creditors           43                     21
              Accruals           104                     42
                                 147                     63

Net current assets                            1,786                      1,906

Net assets                                    2,720                      2,950

Capital and reserves

              Share capital                   1,171                      1,242
              Share premium                   3,443                      4,132
              Other capital reserve               5                          5
              Profit and loss account        (1,899)                    (2,428)

Shareholders' funds                           2,720                      2,951
Minority interest                                 -                         (1)
                                              2,720                      2,950


Consolidated Cash flow Statement for the 6 months to 30 June 2001

                                                        6months      6months    
                                                     to 30 June   to 30 June
                                                           2000         2001
                                                           £000         £000


Net cash outflow from operating activities                 (658)        (662)

Returns on investments and servicing of finance              56           55

Capital expenditure and financial investment               (149)        (128)

Cash outflow before financing                              (751)        (735)

Management of liquid resources

Payments to short term deposits                          (2,140)         (30)

Financing

Issue of new ordinary shares                                969          760

Decrease in cash in the period                           (1,922)          (5)

Reconciliation of operating loss to net cash 
outflow from operating activities

Operating loss                                             (185)        (593)

Depreciation and amortisation                                18           26

(Increase)/decrease in debtors                               10          (11)

Decrease in creditors                                      (301)         (84)

Decrease in provision for liabilities and charges          (200)           -

                                                           (658)        (662)

Reconciliation of net cash flow to movement in net debt

Decrease in cash in the period                           (1,922)          (5)

Net funds at 1 January                                    1,928           26

Net funds at 30 June                                          6           21

In addition, at 30 June 2001 £1,750,000 of cash was held on short term deposit 
(31 December 2000: £1,720,000)


The interim figures for the six months ended 30 June 2001 have been prepared on 
the basis of the accounting policies set out in the Annual Report and Accounts 
for the year ended 31 December 2000. The financial information contained in this
interim report does not constitute statutory accounts within the meaning of 
Section 240 of the Companies Act.

The Balance Sheet reproduced on page 3 as at 31 December 2000 is extracted from 
the published accounts for the year ended on that date. These accounts were 
reported upon by BDO Stoy Hayward and delivered to the Registrar of Companies. 
The report of BDO Stoy Hayward was unqualified and did not contain a statement 
under Section 237(2) or (3) of the Companies Act 1985.



Independent Review Report to Transense Technologies plc

Introduction

We have been instructed by the Company to review the financial information for 
the six months to 30 June 2001 set out in this interim report.  We have read the
information contained in the Chairman's interim statement in this report and 
considered whether it contains any apparent misstatements or material 
inconsistencies with the financial information.

Director's responsibilities

This interim report, including the financial information contained herein, is 
the responsibility of, and has been approved by, the Directors of the Company.  
The Directors are responsible for preparing the interim report and for ensuring 
that the accounting policies and presentation applied to the interim figures are
consistent with those applied in preparing the preceding annual accounts except 
where any changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom.  A review 
consists principally of making enquiries of group management and applying 
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation 
have been consistently applied unless otherwise disclosed.  A review excludes 
audit procedures such as tests of controls and verification of assets, 
liabilities and transactions.  It is substantially less in scope than an audit 
performed in accordance with United Kingdom Auditing Standards and therefore 
provides a lower level of assurance than an audit.  Accordingly, we do not 
express an audit option on the financial information.

Review conclusion

In the Cash Flow Statement within the Company's interim report for the six 
months ended 30 June 2000, cash deposits amounting to £2,140,000 were shown as 
part of cash funds.  In this report they have been included in short term 
deposits to reflect more appropriately the nature of the deposit.

On the basis of our review, we are not aware of any material modifications that 
should be made to the financial information as presented for the six months to 
30 June 2001.

BDO Stoy Hayward
Chartered Accountants

Bromley, Kent BR1 3WA

4 September 2001