Interim Results

Transense Technologies PLC
22 September 2006


Transense Technologies plc
Interim Results 2006

In the six months to June 2006 the Company loss was £809,000 (2005 amended:
£672,000). This reflects the impact of FRS 20, now requiring a charge for
employee share options of £126,000 (2005 £48,000) and the 2005 figure is amended
appropriately.  The share option charges have no effect on the balance sheet.
Turnover for the same period only totalled £17,000 (£52,000) but as in the past
two years the second-half will show a considerably higher turnover figure than
this.

Excluding this option scheme adjustment the loss was £683,000 (2005: £624,000). 
Actual costs rose from £686,000 to £735,000 explained by an increasing depletion
charge on patent costs, and higher staff travelling costs, reflecting Tier 1
requests for Transense to increase support for front line development.  Cash at
bank at the end of June was £2.1 million.

I am delighted to announce that, after many months of negotiations, Transense
has signed a non-exclusive licence agreement with Lear Corporation, a $19
billion turnover Tier 1 Group.  Lear already supplies 10 million battery tyre
pressure sensor systems in the US and Far East, which equates to over 15% of the
tyre pressure monitoring system (TPMS) market in America alone.  Under terms of
the agreement, Transense and Lear will work closely together over the next
twelve months to integrate Transense's batteryless TPMS that will also use our
SAW sensor technology to communicate with Lear's remote keyless entry receiver
(RKE) technology.

Having been a pioneer in the market, Lear is the world's leading supplier of RKE
systems, with an estimated 50% of that market.  Many of the current battery TPMS
suppliers' sensors operate with Lear's transceivers that are needed to collect
and display data from their individual tyre pressure monitors.  As a result,
Lear has an in-depth knowledge of the competition and price, as well as the
technology that is already out there, and is in an ideal position to capture a
large part of the fast growing TPMS market place.

I reported at the AGM earlier this year that the launch of our TPMS would take
place in the last quarter of 2006.  Although as you are well aware we do not
control the timing, I am pleased to report that we understand that this is still
on track.  We are looking forward to the publicity it receives and the
recognition it gives to our breakthrough technology.

The volume of sales reported in the first six months of 2006 bears little
reflection on the actual amount of activity that has been going on at Transense.
For instance, our engineers have been fully extended working on new torque
systems for two of the largest automotive manufacturers in the world.  Having
delivered systems to each of these companies for initial testing, they have
quickly placed orders for further systems to be delivered in the second half of
this year.

We are very proud of our small team for the effort that they have put in to make
the testing of these initial systems such a resounding success.  Your Board has
no hesitation in saying that, led by our Technical Director, Dr Ray Lohr, they
have achieved a major breakthrough in measuring in-vehicle, engine torque which
was not thought possible before.

Although this does not signal a raft of large orders in the short term, the
positive responses it has received bodes extremely well for the medium to long
term future success of Transense and its ability to commercialise the Company's
outstanding technology.


Peter Woods
Chairman
22 September 2006



                        Profit & Loss Account for the 6 months to 30 June, 2006

                                                     6 months to                            6 months to
                                                    30 June 2006                           30 June 2005
                                                                                  (restated see Note 3)
                                                            £000                                   £000
Turnover                                                      17                                     52
Cost of sales                                               (14)                                   (15)
Gross profit                                                   3                                     37

Administrative expenses (Note 3)                           (861)                                  (734)
Operating Loss                                             (858)                                  (697)

Interest income                                               49                                     25
Loss on ordinary activities before taxation                (809)                                  (672)

Taxation                                                       0                                      0
Loss for the period                                        (809)                                  (672)


Loss per share:                                           (1.4p)                                 (1.3p)



                                        Balance Sheet at 30 June, 2006

                                                    30 June 2006                               31 December 2005
                                                            £000                                           £000
Fixed assets                                               1,730                                          1,665

Current assets:           Debtors               94                                       598
                          Cash               2,064                                     2,399
                                             2,158                                     2,997

Current liabilities:      Creditors            128                                       175
                          Accruals              56                                       113
                                               184                                       288
Net current assets                                         1,974                                          2,709

Net assets                                                 3,704                                          4,374


Capital and reserves:
                          Share capital                    5,646                                          5,641
                          Share premium                    5,376                                          5,368
                          Profit and Loss account        (7,318)                                        (6,635)

Shareholders' funds                                        3,704                                          4,374



Notes:
     
1    The comparatives for the full financial year ended 31 December 2005 are not 
     the Company's full statutory accounts for the year.  A copy of the 
     statutory accounts for that year has been delivered to the Registrar of 
     Companies.

     The auditors' report on those accounts was unqualified and did not contain 
     a statement under Section 237 (2) - (3) of the Companies Act 1985.
     
2    The interim financial information has been prepared on a going concern 
     basis, which assumes that the Company will have adequate resources to 
     continue in operational existence for the foreseeable future.

3    Administrative expenses includes a charge of £126,000 (2005 £48,000) 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 will be added back in the Statement of 
     Total Recognised Gains and Losses in the annual financial statements. There 
     are no other recognised gains or losses for the current and prior period.
     
4    No deferred tax asset is recognised in these financial statements in 
     respect of trading losses incurred to date.



                          Cash Flow Statement for the 6 months to 30 June, 2006

                                                              6 months to                     6 months to
                                                             30 June 2006                    30 June 2005
                                                                                        (restated Note 3)
                                                                     £000                            £000
Net cash outflow from operating activities                          (271)                           (157)

Returns on investments and servicing of finance                        49                              25

Corporation tax                                                         0                               0

Capital expenditure and financial investment                        (126)                           (121)

Cash outflow before management of liquid resources
and financing                                                       (348)                           (253)

Management of liquid resources
            Receipts from short term deposits                         375                             215

Financing
            Issue of new ordinary shares                               13                               0
Increase / (decrease) in cash in the period                            40                            (38)


Reconciliation of operating loss to net cash outflow from
operating activities
          Operating loss                                            (858)                           (697)
          Depreciation and amortisation                                61                              44
          Decrease in debtors                                         504                             542
          Decrease in creditors and accruals                        (104)                            (94)
          Charge on share option schemes                              126                              48
                                                                    (271)                           (157)

Reconciliation of net cash flow to movement in net
debt
          Increase / (decrease) in cash in the                         40                            (38)
          period
          Cash inflow from changes in liquid                        (375)                           (215)
          resources
          Movement in net funds in the period                       (335)                           (253)
          Net funds at 1 January                                    2,399                           1,161
          Net funds at 30 June                                      2,064                             908


Analysis of net funds
                                                                   Liquid       Cash                Total
                                                                resources
                                                                     £000       £000                 £000
                               At 1 January                         2,300         99                2,399
                               2006
                               Cash flow                            (375)         40                (335)
                               At 30 June                           1,925        139                2,064
                               2006





                            INDEPENDENT REVIEW REPORT
                         To Transense Technologies plc


Introduction

We have been instructed by the Company to review the financial information for
the six months ended 30 June 2006 which comprises the profit and loss account,
balance sheet, cash flow statement, and related notes.  We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.

This report is made solely to the company in accordance with the terms of our
engagement.  Our review has been undertaken so that we might state to the
company those matters we are required to state to it in this report and for no
other purpose.  To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company for our review work, for
this report, or for the conclusions we have reached.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors.  The directors
are responsible for preparing the interim report in accordance with the AIM
Rules which require that the interim report must be presented and prepared in a
form consistent with that which will be adopted in the company's annual accounts
having regard to the accounting standards applicable to such annual accounts.

Review work performed

We conducted our review having regard to the guidance contained in Bulletin 1999
/4 issued by the Auditing Practices Board for use in the UK.  A review consists
principally of making enquiries of 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 International Statements on Auditing (UK and Ireland) and
therefore provides a lower level of assurance than an audit. Accordingly, we do
not express an audit opinion on the financial information.

Review conclusion

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
ended 30 June 2006.



KPMG Audit Plc
Chartered Accountants                                          22 September 2006



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