Re Agreement

25 June 2007

                            Surface Transforms plc                             
                    ("Surface Transforms" or "the Company")                    

 Surface Transforms signs a Supply & Distributor agreement with Movit GmbH   
                                   ("Movit")                                    

Surface Transforms, makers of high-technology carbon fibre reinforced ceramic
(CFRC) materials for the aerospace, defence and high end automotive markets,
has signed a supply and distributor agreement with Movit, www.movit.de, a
leading European supplier of braking systems to the after-market industry.
Movit is based in Achern, Germany and supplies its automotive clients within
Germany through 45 sub dealers. It also has distributors in 21 other countries.
Last year Movit installed steel based brake disc systems onto over 2,000 high
performance cars.

Movit was established in 1994 and its core product range comprises brake
systems, based on high value steel brake discs. Movit will act as a distributor
of System ST ceramic brake discs to the automotive tuning aftermarket in
Europe. Surface Transforms expects to generate at least €150,000 of sales
during the first two years of the contract, equivalent to approximately 25 cars
per annum. To date, Movit has ordered approximately €31,000 worth of ceramic
brake discs, the majority of which will be delivered over the next 30 days. The
principal market for these specialist brakes sets are high-performance
vehicles, fast heavy road cars and light race cars, for which their owners are
seeking significantly enhanced braking performance.

Guido Frensemeyer owner and Managing Director of Movit GmbH, said:

"After many years of research and vehicle trials of ceramic rotors we believe
that with System ST we now have a unique solution to take to the European
automotive after-market. We are very excited about the prospects that this
agreement offers"

For enquiries, please contact:

Surface Transforms plc                                Tel: [phone]
Antoni Sznerch, Business Development Director                                  
Dr Kevin Johnson, Managing Director                                            
                                                                               
Movit GmbH                                                  Tel: [phone]
Guido Frensemeyer                                                              
                                                                               
John East & Partners Limited                          Tel: [phone]
Simon Clements                                                                 
                                                                               
Teather & Greenwood Limited                           Tel: [phone]
Sindre Ottensen                                                                

Details of the Company's business and financial performance and its share price
can be found on www.armshare.com which is accessed from the Armshare icon on 
www.surface-transforms.com