Interim Results

Transense Technologies PLC
20 September 2004

Date:                         20 September 2004
On behalf of:                 Transense Technologies plc
Embargoed until:              0700hrs


Transense Technologies plc
Interim Results for the six months to 30 June 2004

Chairman's Statement

Transense Technologies plc ('Transense' or the 'Company') has made major
progress in the first six months of 2004 on all its main areas of development -
tyre pressure monitoring systems (TPMS), electric power steering (EPAS) and
powertrain (engine, transmission, and driveline) systems.

The Company's first half turnover of £48,000 (£180,000 H1 2003) is a reflection
of the timing of development contract expenditure and does not reflect the
progress that has been made in the period.

All expense categories were held below budgeted levels and administrative
expenses are significantly below last year as suppliers take over increasing
amounts of development cost. Cash deposits are in line with budget at £1.48
million.

We received a royalty advance from our principal application licensee for TPMS
of $100,000, paid in Quarter 2, and this is held in the balance sheet as a
creditor. Today's announcement with Michelin extending their existing licence
with Transense is a further example of our strengthening relationships and
growing programme success with licensees and suppliers.

We also reiterate the view that as our licensees' products move nearer to market
launch, confidentiality strictures increase concerning their precise launch
timing because of competitive pressures. This does not make it easy to be
certain when the launch of these products will take place. However, it is
important our shareholders are given a reasonable idea of when our licensees'
products might come to market and we remain of the view that TPMS should
commence with our principal application licensee on commercial vehicles at the
end of 2004, with royalties due in 2005. As part of the ongoing testing
programme and we believe this is substantially complete, over 10,000 devices
have now been shipped to Honeywell.

We continue to develop multiple routes to market on TPMS and have excellent (big
three) OEM support for the main powertrain torque-monitoring programme. A major
American Tier 1 supplier is also working with us as a key partner supporting our
EPAS torque programme. As a further example of continuing development growth, we
have taken on board 13 new feasibility studies over the first half of 2004 on
EPAS and powertrain systems.

We now have an excellent supporting supply chain with Honeywell, Melexis, and
Temex and are confident that other major licensees will join us over the short
term to exploit our technology. The development of the torque and pressure ASIC
is on schedule with prototypes scheduled for testing in Q4. Whilst not needed
for the first customer TPMS programme it provides important support for other
companies working on passenger car tyres, and most torque applications including
EPAS and powertrain.

As ever, we urge caution regarding over-reliance on timings for
commercialization of our SAW technology, but we do feel confident that the
market for our growing property rights continues to be very significant,
attractive and vibrant and we remain confident of reaching success over the near
to medium term.

Peter Woods Chairman
20 September 2004

PROFIT & LOSS ACCOUNT
For the six months to 30 June 2004

                                                                      6 months to          6 months to
                                                                     30 June 2004         30 June 2003
                                                                            £'000                £'000
Turnover                                                                       48                  180
Cost of Sales                                                                (25)                 (29)

Gross profit                                                                   23                  151
Administration expenses                                                     (681)                (891)

Operating Loss                                                              (658)                (740)
Interest income                                                                29                   26

Loss on ordinary activities before taxation                                 (629)                (714)
Taxation                                                                        0                    0

Loss on ordinary activities after taxation                                  (629)                (714)

Dividends                                                                       -                    -
Loss per share:                                                            (1.2)p               (1.4)p



BALANCE SHEET
at 30 June 2004

                                                                           30 June                   31 December
                                                                              2004                          2003
                                                            £'000            £'000       £'000             £'000
Fixed Assets                                                                 1,507                         1,492
Current assets:  Debtors etc                                  129                          141
Cash                                                        1,485                        2,071
                                                            1,614                        2,212
Current liabilities:  Creditors (Note)                        124                           51
Accruals                                                       34                           61
                                                              158                          112
Net Current assets                                                           1,456                         2,100
Net assets                                                                   2,963                         3,592
Capital & reserves:  Share capital                                           5,319                         5,319
Share premium                                                                3,351                         3,351
Profit & Loss account                                                      (5,707)                       (5,078)
Shareholders' funds                                                          2,963                         3,592


Note: Creditors includes £56,000 royalty fees received in advance (2003 £nil).


CASH FLOW STATEMENT
For the six months to 30 June 2004


                                                                                6 months to          6 months to
                                                                               30 June 2004         30 June 2003
                                                                                      £'000                £'000
Net cash outflow from operating activities                                            (554)                (604)
Returns on investments and servicing of finance                                          29                   26
Corporation tax received                                                                  0                   52
Capital expenditure and financial investment                                           (61)                (152)
Cash outflow before financing                                                         (586)                (678)
Management of liquid resources                                                          550                    0
Decrease in cash in the period                                                         (36)                (678)
Reconciliation of operating loss to net cash outflow from
operating activities
Operating loss                                                                        (658)                (740)
Depreciation & amortisation                                                              46                   67
Impairment in value of investment                                                         0                   17
Decrease in debtors                                                                      12                   67
Increase/(decrease) in creditors                                                         46                 (15)
                                                                                      (554)                (604)
Reconciliation of net cash flow to movement in net debt
Decrease in cash in the period                                                         (36)                (678)
Cash outflow from changes in liquid resources                                         (550)                    0
Decrease in value of current asset investment                                             0                 (17)
Movement in net funds in the period                                                   (586)                (695)
Net funds at 1 January                                                                2,071                1,900
Net funds at 30 June                                                                  1,485                1,205

Analysis of net funds
                                                                 Liquid                Cash                Total
                                                              resources
                                                                  £'000               £'000                £'000
At 1 January 2004                                                 1,950                 121                2,071
Cash flow                                                         (550)                (36)                (586)
At 30 June 2004                                                   1,400                  85                1,485



INDEPENDENT REVIEW REPORT
to Transense Technologies plc

Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 June 2004 on pages 4 and 5. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.

Our report has been prepared in accordance with the terms of our engagement to
assist the company in meeting the requirements of the rules of the London Stock
Exchange for companies trading securities on the Alternative Investment Market
and for no other purpose. No person is entitled to rely on this report unless
such a person is a person entitled to rely upon this report by virtue of and for
the purpose of our terms of engagement or has been expressly authorised to do so
by our prior written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we hereby expressly
disclaim any and all such liability.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. Where a company
is fully listed, the directors are responsible for preparing the interim report
in accordance with the Listing Rules of the Financial Services Authority which
require that the accounting policies and presentation applied to the interim
figures should be consistent with those applied in preparing the preceding
annual accounts except where any changes, and the reasons for them, are
disclosed. The directors of Transense Technologies plc have voluntarily complied
with this requirement in preparing the interim report.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom by auditors
of fully listed companies. A review consists principally of making enquiries of
management and applying analytical procedures to the financial information and
underlying financial data and based thereon, assessing whether the accounting
policies and presentation have been consistently applied unless otherwise
disclosed. A review excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions. It is substantially less
in scope than an audit performed in accordance with United Kingdom Auditing
Standards and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2004.

BDO Stoy Hayward Registered Auditors
Chartered Accountants
Bromley, Kent BR1 3WA
20 September 2004

Enquiries to:

Transense
James Perry, Chief Executive
[e-mail]               Tel: [phone]
www.transense.co.uk

Redleaf Communications
Emma Kane, Chief Executive                Tel:  [phone]
[e-mail]                          Mob: [phone]

Notes to Editors:

•   Transense was founded in 1991 and its shares were listed on AIM in 1999;
•   Transense's technology is divided into two business streams:  Torque   
    measurement and Pressure measurement;
•   Current licensees of Transense's technology include SmarTire, 3DM,
    Michelin, Honeywell, Temex Microsonics, Tai-Saw and TT electronics;
•   Further information on Transense is available at the Company's
    website at www.transense.co.uk


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