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 www.surface-transforms.com

ENQUIRIES:

Surface Transforms plc                                                       
                                                                             
Kevin Johnson                                              Tel: [phone]
                                                                             
Geoff Hall                                                                   
                                                                             
John East & Partners Limited                                                 
                                                                             
Simon Clements                                             Tel: [phone]
                                                                             
Hansard Group (PR)                                         
                                                                             
John Bick/Chris Roberts                                    Tel: [phone]                  
                                                                             
Redmayne Bentley (Private Client                                             
Broker)                                                                      
                                                                             
Lucy Clapham/Simon Flather                                  Tel: [phone]

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.