Re Contract

30 June 2008 Surface Transforms plc ("Surface Transforms" or the "Company") Four year agreement to supply a leading global automotive brake system supplier Surface Transforms (AIM: SCE) is pleased to announce the signing of a four year sales agreement with a leading global automotive brake system supplier for the supply of carbon fibre preform discs. The directors believe, based on forecasts prepared by the brakes system supplier, that this contract could generate additional revenues of approximately £300,000 - £400,000 per annum over the life of the agreement and the Company has sufficient manufacturing capacity to meet this demand. The Company has delivered its first order under the terms of this agreement in the second quarter of 2008. Commenting, Dr Kevin Johnson, Chief Executive of Surface Transforms, said: "This agreement demonstrates that Surface Transforms has the expertise in advanced carbon fibres, and industrial fabrics which can provide a competitive edge in composite brake technology and takes our leading-edge products into the forefront of the international automotive performance brake market. The expected revenue from this agreement is significantly greater than the total revenue reported in the Company's audited accounts for the previous financial year and represents a significant endorsement of the Company's technology". Enquiries: Surface Transforms plc Dr Kevin Johnson, Dr Geoff Gould Tel: 0151 356 2141 Kevin D'Silva Tel: 07802 306956 John East & Partners Limited (Nomad and Broker) Simon Clements Tel: 020 7628 2200 Hansard Group (PR) Tel: 020 7245 1100 John Bick/Chris Roberts Redmayne Bentley (Private Client Broker) Lucy Clapham/Simon Flather Tel: 01943 886600 Notes to Editors Surface Transforms plc (AIM ticker: SCE) is the UK's leading manufacturer of `next-generation' carbon fibre reinforced ceramic composite materials (CRFCs). The Company's high-performance products are being commercialised with major industry partners, for an expanding range of innovative global applications - using cutting-edge technology developed by the company. SystemST is Surface Transforms' new Ceramic braking system for the performance and prestige car market. By combining cutting-edge aerospace technology with Formula 1 know-how tested to the highest specifications, this new product delivers the ultimate in high-performance brakes which can be designed to last the entire lifetime of a car. SystemST's features include: weight savings of up to 70 per cent, improved friction coefficient, high energy absorption capacity, reduced brake fade and improved brake wear.
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