DTI Grant Award

Embargoed: not to be released until 7.00am on

                                                                   5 March 2007

                            Surface Transforms plc                             

                    ("Surface Transforms" or "the Company")                    

              Award to a £1.34 million Collaborative R&D Project               
              by the UK Department of Trade and Industry ("DTI")               

Surface Transforms is pleased to announce the grant award for a three year, £
1.34 million collaborative research and development project. The DTI led
Technology Programme has funded a grant of £600,000 to a consortium of
companies led by Surface Transforms.

The purpose of the project is to develop new technology and products allowing
innovative recycling of carbon waste material for the production of carbon
ceramic brake systems for cars and longer wearing carbon brake friction
products for use on aircraft.

The Company's partners in this collaborative project are:-

  * Milled Carbon Limited (regenerated carbon waste )
   
  * AP Racing Limited (brake systems for high performance cars)
   
  * Dunlop Aerospace Braking Systems Limited (aircraft brake systems)
   
  * Federal-Mogul Friction Products Limited (brake pads)
   
  * The Witchita Company Ltd (industrial brake & clutch products )
   
  * University of Loughborough ( specifications, analysis, testing)
   
Loughborough University's contribution is funded by the Engineering and
Physical Sciences Research Council "EPSRC".

Airbus UK, whilst not a collaborative partner, will support the project both
technically and with the free supply of waste carbon products to serve as raw
materials.

Surface Transforms is the lead company and project co-ordinator and will be
supplying the proprietary technology relating to the manufacture of carbon
ceramic brake discs. The other industrial partners are all technology leaders
in their respective fields of innovative friction material technology for use
in the transport market and a number of them are already trading partners of
Surface Transforms.

The project commenced on 1 March 2007 and the financial impact of the grant
award, in terms of a reimbursement of overheads and in cash terms, is expected
to be significant. The Directors estimate that in each of the three years of
the project, Surface Transforms will benefit by way of a contribution to
overheads and improved cash flow of approximately £140,000 per annum.

The project is designed to have an improved economic and environmental impact
on the use of friction materials in transport. The levels of waste carbon fibre
are increasing rapidly on a global scale as a result of increasing carbon fibre
material usage in the design of civil engineering industrial structures,
aircraft and automobiles. Innovative recycling of waste carbon and its
conversion into more cost effective carbon friction products can have very
positive financial and environmental benefits especially for the car industry.

At 28 February 2007 the Company's cash resources were £1.22 million equivalent
to 9 pence per share and it has no borrowings.

Welcoming the new partnership, Science and Innovation Minister, Malcolm Wicks
said:

"The UK has a proud history of innovation in science and technology. We believe
that we must work with industry to develop the marketable products and services
of tomorrow, so that we can maintain our position as a leading global economy.

"That's why we're supporting this project, which could revolutionise the
recycling of carbon waste material, helping to benefit our environment. It
provides a great opportunity to harness the UK's world-class expertise."

Kevin D'Silva, Surface Transform's Chairman, commented: "This is another
material endorsement of the Company's technology and it will have a significant
impact on the Company's financial performance and cash flow. We are pleased
that the DTI has approved the Company as co-ordinator for this project."

For enquiries, please contact:

Surface Transforms plc 0151 356 2141

Dr. Kevin Johnson

Dr. Geoff Gould

John East & Partners Ltd (Nomad) 0207 628 2200

Simon Clements, David Worlidge

Teather & Greenwood (Broker) 0207 426 9000

Sindre Ottesen

Details of the Company's business and financial performance and its share price
can be found on the Armshare icon on www.surface-transforms.com. A presentation
of the 2006/7 interim results is also available on www.surface-transforms.com/
Investor and Media relations.

Notes to Editors

About the Technology Programme

The Technology Programme provides funding using two of the DTI's business
support products: Collaborative Research & Development and Knowledge Transfer
Networks. Over the period 2005-2008, £320 million in funding is being made
available from DTI to businesses to support research and development in
technology areas identified by the Government's Technology Strategy Board. This
funding is increased by contributions from other Government Departments such as
Defra (£30m), Regional Development Agencies and Devolved Administrations (£30m)
and Research Councils (£26m).

The Programme is investing directly in new and emerging technologies and has
been designed to help businesses work collaboratively with each other or with
academic partners to develop technologies that will underpin products and
services of the future.

In November 2006, DTI announced that, building on its success to date, the
Technology Strategy Board would in 2007 become an Executive Non Departmental
Public Body taking over responsibility for the delivery of the Technology
Programme.

Since 2004, the Technology Programme has supported over 600 projects across 40
technology areas with a combined business and Government investment worth over
£900m. 22 Knowledge Transfer Networks (KTNs) have also been established with
funding of around £40m over 3 years. For further information: http://
www.dti.gov.uk/innovation/technologystrategy.

Other websites:

Surface Transforms plc: www.surface-transforms.com

Dunlop Aerospace Braking Systems: www.dunlop-aerospace.com/braking

Federal Mogul Friction Products Ltd: www.federal-mogul.com/en/OurCompany/

AP Racing Ltd: www.apracing.com

Milled Carbon Ltd.: www.milledcarbon.com

The Wichita Company Ltd.: www.wichita.co.uk

Loughborough University : www.lboro.ac.uk/departments/iptme