Trading Statement

Surface Transforms PLC
13 January 2005



RNS Release

13 January 2005
                                        
                                 Trading Update

The Company's half-year results for the six months to 30 November 2004 will be
announced in February 2005 and the Board takes this opportunity to update
shareholders on progress within our automobile and aircraft brake application
markets, and the strengthening of the management team.

The company's unique CFRC technology is used to make carbon ceramic material
brake discs and pads and the products have been undergoing performance trials
with a number of end-user customers.

First Commercial Sales of Road Car Brake Discs

As announced in June 2004, Metek GmbH and Surface Transforms have signed a
co-operative agreement to develop and market carbon ceramic brakes for road car
applications in Europe. Under the terms of the agreement Surface Transforms is
providing the ceramic brake discs and pads whilst Metek is supplying the brake
callipers and conventional pads as well as calibrating, testing and qualifying
the brake systems.

We reported to shareholders at our AGM in October 2004 of our attendance at the
Automotive Aftermarket Show in Essen, Germany last November. It is one of the
most prestigious automotive aftermarket shows in Europe and it provided an
excellent venue to launch and showcase our 'System ST' branded carbon ceramic
brake discs and pads.

The show, which was attended by around 400,000 visitors, met our expectations.
The Company received 150 enquiries, 20 of which were from European specialist
vehicle tuning companies, a key market for our brakes and pads. We also took
firm orders for 10 brake systems for despatch in the second quarter of 2005 and
we expect further orders for the brake systems during this year.

The brake systems are fully professional upgrade kits, comprising the latest
ceramic brake technology, which can be fitted by specialist tuning companies or
competent private individuals to a range of prestige and performance vehicles
including Ferrari, Porsche, Mercedes, BMW and Audi.


Aircraft Brakes Agreements

Dunlop Update

As previously announced, Dunlop Aerospace has a Master Licence Agreement with
the Company, which covers the supply of braking materials for a range of
different aircraft models. Over the past eighteen months, Surface Transforms and
Dunlop Aerospace have been working against tight timescales to develop and
evaluate carbon ceramic materials for a new wide-bodied commercial aircraft.

Unfortunately, the performance evaluation period required to fully develop,
qualify and manufacture the brake discs for this model of aircraft will be
longer than the aircraft's launch timetable and consequently ST's carbon ceramic
brakes will not be used during the initial years of the plane's operation.
Surface Transforms will continue to work with Dunlop Aerospace under the terms
of its Master Licence Agreement.

New Aircraft Brake Agreement

Surface Transforms has signed an agreement to commence carbon ceramic aircraft
brake disc evaluation with a major US-based aircraft brake supplier.

The first stage of the development programme will commence immediately and will
generate revenues which we expect will escalate with the satisfactory completion
of a series of development milestones. Shareholders will be given further
updates as the project advances, subject to customer confidentiality.

Executive Management Team

Kevin Johnson PhD, MBA, who joined the Company in July 2004 as Operations
Director, has been appointed to the Board of Surface Transforms with immediate
effect.

In addition, Mr. Antoni Sznerch, BSc, MBA, has been appointed Business
Development Director. He will be responsible for sales and business development
in the automotive applications market and has some 25 years' experience in
composite materials in the automotive market. He was formerly business manager
of the high-performance automotive materials division within Cytec Engineered
Materials Inc. (1982-2003) and European sales manager of Advances Composites
Group Limited (now part of Umeco).

General

As at 31 December 2004 the Company had unaudited cash and cash deposits of
approximately £2.95 million, equivalent to 21 pence per share.

Details of the Company's business and financial performance, its share price
history and the latest published commercial news can be found on
www.armshare.com which can be reached via www.surface-transforms.com. Analyst
reviews of the Company are available on AmReview on the armshare.com website.


Enquiries, please contact:

Julio Faria                                      Neil Boom
Managing Director                                Managing Director
Surface Transforms plc                           Gresham PR Ltd.
01928 735498                                     020 7404 9000 
                                  
Johnny Townsend
John East & Partners Limited
020 7628 2200




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