Re Agreement

Surface Transforms PLC
05 December 2003


News Release


5 December 2003



              Surface Transforms signs a major licensing contract

                             with Dunlop Aerospace


Surface Transforms plc, makers of high technology carbon ceramic materials, has
signed a major licensing contract with Dunlop Aerospace, one of the world's
leading suppliers of aircraft braking systems and services to the aerospace
industry. This is the most significant contract signed to date by Surface
Transforms.


Under the contract and subject to Surface Transforms's technology passing
certain technical milestones leading up to certification on a new commercial
aircraft, Dunlop Aerospace will be able to produce and sell carbon brake
materials transformed by Surface Transforms's proprietary technology from a
Dunlop facility located at its Coventry site. This new licensing contract is the
first application of Surface Transforms's carbon ceramic technology within the
global commercial aircraft industry.


Prior to signing the licensing contract, Surface Transforms has been receiving
regular payments for the design and specification of a plant, and for the
production of test batches of materials for new aircraft brakes using a Dunlop
pilot plant which was successfully installed in Surface Transforms's Ellesmere
Port plant in December 2002.


Managing Director of Surface Transforms, Julio Faria, commented:


'This is tremendous news. This concludes the first stage of nearly three hard
years of development by our team and Dunlop's team of scientists and engineers.
It has been a terrific effort by all parties, but I would like to pay particular
tribute to the dedication of the staff of Surface Transforms. While there still
is a lot of hard work to be done, this first major deal represents a great step
forward for Surface Transforms, and is positive proof of the strength of both
our technology and our commercial strategy to license the production to global
aerospace partners.'


John Whelan, Marketing & Business Development Director at Dunlop Aerospace,
said:


'This contract marks a key milestone in a joint collaboration between Dunlop
Aerospace and Surface Transforms towards making aircraft brakes that combine
demonstrable weight advantages and improved durability over existing rival
braking technologies. We are delighted this agreement is in place.'



Enquiries, please contact:

Julio Faria                                    Neil Boom
Managing Director                              Managing Director
Surface Transforms plc                         Gresham PR Ltd.
01928 735 498                                  020 7404 9000

Neil Baldwin
Brewin Dolphin Securities
0113 241 0126





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