Licensing Agrmnt Signed

Transense Technologies PLC 6 June 2000 Transense signs world-wide licensing agreement with Sawtek Transense Technologies has signed an exclusive world-wide licensing agreement with Sawtek Inc, one of the fastest growing manufacturers of Surface Acoustic Wave (SAW) devices in the world, listed on NASDAQ with a market capitalisation yesterday of $3.1 billion. Under the terms of the agreement Microsensor Systems Inc (MSI), a wholly owned subsidiary of Sawtek, has the right to mass-produce Transense's SAW devices for sale to the application licensees of Transense's patented technology. Transense will receive a royalty on all sales of the licenced devices. In exchange for the exclusive licence and in addition to the royalty payments that Transense will receive, Sawtek will make the investment in tooling and production machinery that is necessary to produce the Transense SAW devices. Sawtek's production of SAW devices has grown more than four-fold over the past twelve months and currently the Company is producing at the rate of several million devices a month. Transense's SAW sensors are used to measure torque, strain and pressure in applications such as electric power steering, driveline and tyre pressure monitoring. These devices can measure minute changes in many automotive applications, and require no power source as they can be interrogated through wireless non-contact technologies. With vehicle sales running at over 50 million a year and the potential of 25 SAWs or more per vehicle, the market for Transense's SAW sensors could be on the same scale as that seen in mobile phones over the past five years. Jim Perry, Chief Executive of Transense, said last night, 'Transense's strategy is to licence its technology and not manufacture anything apart from prototypes. The company's strength rests in its patents, licencees and the enthusiasm and ability of its engineering team to make Transense a world leader in automotive sensors. 'We have identified Sawtek as the most suitable partner to mass manufacture the SAW device, which is the core element of our sensor technology. Sawtek was chosen because of its outstanding growth record over the past five years, and its on-going strategy to seek out other large potential markets which can offer dynamic growth similar to that seen in mobile phones'. 'A key element of our strategy is to licence manufacturing partners such as Sawtek for each element of our product range. This agreement represents another significant step towards achieving our goals'. Bill Drafts, Vice President and General Manager of MSI, stated: 'A strategic focus for MSI is to leverage acoustic wave technology into high volume markets not presently served by our parent company Sawtek. We feel that the automotive market meets our requirements and we are very excited to be selected as the exclusive manufacturer of SAW tire pressure and torque sensors utilising Transense's patented technology'. For further information, please contact: Jim Perry Chief Executive Transense Technologies plc 01869 238 030 John Coyle 020 7713 0900 Clerkenwell Communications 07770 687 370 Graeme Bayley Manager Growth Companies Team HSBC 020 7336 9000
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