Trading Statement

10 July 2008 Surface Transforms plc ("Surface Transforms" or the "Company") Pre-close trading update for the year ended 31 May 2008 Highlights * Turnover increased by 90 per cent. to £508,112 * Sales agreement with a leading global automotive brake system supplier * Order book increased by 138 per cent. to approximately £300,000 Update The Board of Surface Transforms, a manufacturer of high technology carbon ceramic materials for braking systems, is pleased to announce a trading update for the year ended 31 May 2008. As announced on 30 June 2008, Surface Transforms signed 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. The Company is pleased to announce that its financial performance for the year ended 31 May 2008 is broadly in line with market expectations. The Company expects to report turnover of approximately £508,000, which is equivalent to an increase of 90 per cent compared to the corresponding period in 2007 of £ 266,789. Losses after taxation for the year are expected to reduce by 8 per cent from £646,422 in the comparative period in 2007 to approximately £594,000. The cash position of the Company has increased to £1,112,719 (2007: £878,971), which is equivalent to approximately 5p per share. In addition, the Company's order book has increased by 137.91 per cent from £126,097 as at 31 May 2007 to approximately £300,000 as at 31 May 2008. The Company expects to announce its final results for the year ended 31 May 2008 on 16 September 2008. Commenting on the historic performance and outlook for the Company, Chairman, Kevin D'Silva, said: "The Board is pleased with the progress in the year to 31 May and believes further significant progress will be made in the forthcoming financial year and is particularly encouraged by the automotive brake contract announced on 30 June 2008". For further Company details visit ENQUIRIES: Surface Transforms plc Kevin Johnson Tel: 0151 356 2141 Geoff Hall John East & Partners Limited Simon Clements Tel: 020 7628 2200 Hansard Group (PR) John Bick/Chris Roberts Tel: 020 7245 1100 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.
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