Re Contract

Surface Transforms PLC
09 March 2005



RNS Release

9 March 2005

              Surface Transforms signs second contract with METEK

Surface Transforms plc, makers of high-technology carbon fibre reinforced
ceramic (CFRC) materials for the aerospace and high end automotive markets, has
signed a further contract with METEK (Metallverarbeitung GmbH), a leading
European supplier of braking systems to the automotive industry. The new METEK
contract is in addition to the one Surface Transforms announced on 28 June 2004.

Under the terms of the new two-year contract, METEK will act as a distributor of
SystemST brake sets to the automotive tuning aftermarkets in France, Germany,
Austria and Switzerland. Surface Transforms expect to generate at least 
Euro 200,000 of sales in the first two years. The principal market for these
specialist brake sets are high-performance vehicles, for which their owners are
seeking significantly enhanced braking performance.

METEK believes that the annual automotive tuning aftermarket in Germany, which
is the largest in Europe, is estimated to consume approximately 4.4 million
steel discs per annum. Surface Transforms estimates that the target market for
carbon ceramic brake discs would be approximately 5% of the steel disc market,
equivalent to around 200,000 ceramic discs per year with potential revenue in
the order of Euro 200 million p.a.

Julio Faria, Managing Director of Surface Transforms, said:

'Based on the level of orders and enquiries received at the launch of our
SystemST automotive brakes in Essen late last year, there is strong appetite
among performance car owners for carbon ceramic brakes. People are increasingly
aware that carbon ceramic brakes provide the most efficient stopping performance
available, while enhancing vehicle handling characteristics and acceleration, by
virtue of being some 70% lighter than traditional steel brake discs. We are
delighted to have signed this latest contract with METEK and we are continuing
to seek and develop additional partners and contracts for the rest of the
European automotive aftermarket.'

For enquiries, please contact:

Surface Transforms plc                     Gresham PR Ltd.
Julio Faria 01928 735 498                  Neil Boom 020 7404 9000
Kevin D'Silva 07802 306956

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

                      This information is provided by RNS
            The company news service from the London Stock Exchange