Re Agreement
Transense Technologies PLC
16 December 2003
Date: 16 December 2003
On behalf of: Transense Technologies plc ('Transense' or 'the Company')
Embargoed until: 0700 hrs
Transense Technologies plc
Expansion of Tyre Sensor Licence Agreement with 3DM
Transense Technologies plc, developer and licensor of wireless sensor technology
for the automotive industry, today announces that it has signed a supplemental
agreement with 3DM Worldwide plc ('3DM'). The agreement with 3DM, a leader in
plastics technology intellectual property, extends the scope of the field-of-use
allowed under its tyre sensor licence agreement.
3DM's original licence agreement with Transense restricted 3DM to only using
sensors that were moulded into the actual wheel. This new agreement extends the
potential field-of-use to any part of an overall wheel.
3DM's licence is non-exclusive licence, although Transense has also agreed that
it will not grant a similar licence to any company whose primary business is
wheel manufacturing before 30 September 2004.
On 24 November 2003, 3DM announced that, with the consent of Transense, it had
agreed to grant to Global Tech International Inc. ('GTII') a sub-licence for the
use of the SAW tyre sensor technology. Under that agreement, GTII will pay
£150,000 to 3DM as well as a royalty equal to 115% of the royalty payable by 3DM
to Transense under the terms of the head licence. The sub-licence will apply
for the duration of the head licence, which is for the life of the patents and
know-how and of any improvements, but only to the NAFTA area, with 3DM retaining
rights to the rest of the world. This widening of the licence could be of
particular advantage to GTII, which is currently in discussions with one of the
leading US automotive groups.
3DM will pay £50,000 to Transense for widening the head licence's field-of-use,
and 3DM will in turn receive £100,000 from GTII for extending the field-of-use
change to the sub-licence agreement. GTII is currently being acquired by
Longborough Capital plc which is 20% owned by 3DM.
James Perry, Chief Executive of Transense, said:
'I am very pleased that 3DM has requested the extension of the scope of its tyre
pressure monitoring licence to include sensors attached to the wheel and to the
valve. We have been testing a new in-valve system developed over the past year
and, having successfully demonstrated it to 3DM recently, 3DM decided to broaden
its licence to enable 3DM's sub-licensee to progress its discussions with a
leading US automotive manufacturer.'
Ken Brooks, Chairman of 3DM Worldwide plc, said:
'With the imminent introduction of new tyre sensor legislation in the USA, this
agreement could be extremely valuable for GTII in its discussions with a major
US auto company and, in addition to the additional sub-licence fee, 3DM would
directly benefit from any contract wins through both royalty income and our 20%
stake in Longborough.'
Further information about Transense can be found at: www.transense.co.uk
Further information about 3DM can be found at the new website -
www.3dmworldwide.com
For further information:
Transense Technologies plc
James Perry, Chief Executive Tel: +44 (0) 1869 238380
james.perry@transense.co.uk
Redleaf Communications (Media enquiries re Transense) www.redleafpr.com
Emma Kane/Nick Lambert Tel: +44 (0) 207 955 1410
3DM Worldwide PLC
Ken Brooks, Chairman Tel: +44 (0) 1993 779 468
kenb@3dmworldwide.com
Bankside Consultants Ltd (Media enquiries re 3DM) www.bankside.com
Ariane Vacher/Chris Munden Tel: +44 (0) 744 4140
Notes to Editors:
About Transense Technologies plc
• 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, Melexis Microelectronic Integrated Systems NV, Temex
Microsonics, Tai-Saw and TT electronics;
• From 1 January 2004, it will be mandatory for tyre sensors to be attached
to all vehicles manufactured in the USA that weigh 10,000 pounds or less.
This legislation has been driven by a mixture of safety and environmental
concerns. Tyre problems are one of the most common causes of vehicle
breakdowns, while hundreds of thousands of accidents each year in the USA
are attributed to low tyre pressures. Under inflated tyres also produce
greater road resistance, more rapid tyre wear and higher fuel consumption.
Surface Accoustic Wave sensors deliver accurate pressure readings quickly
and directly to the driver, they are small and inexpensive to manufacture,
and they do not need batteries.
• Further information on Transense is available at the Company's website at
www.transense.co.uk
About 3DM Worldwide plc
3DM Worldwide plc is a leader in plastics technology intellectual property, and
was admitted to AIM in October 2002.
3DM acquired two plastics manufacturing processes in 2001: Powder Impression
Moulding ('PIM') and 3-Dimensional Blow Moulding, the latter giving 3DM its
name.
The PIM process allows the production of a strengthened plastic composite that
has the strength and other comparable properties of metal. It is a low pressure
moulding process suitable for the production of very large parts. There are
many varied applications in industry where there is a need for overall strength
and rigidity combined with weight savings. Significant capital and tooling
savings can be made, because the methodology of the process utilises a
non-pressure method. There are many and varied potential PIM applications and
it is ideal for those wishing to produce parts that may be large, light weight
and durable. Specific applications include manufacturing of a wide range of
products in high volume global markets such as Building Products, Construction,
Automotive, Marine, Aviation, and White Goods.
3DM's strategy with the PIM process is to offer this technology as an
alternative means of making large complex moulds, but also as a means of
replacing alternative materials like metal or fibreglass. 3DM also believes
that the PIM process offers the potential for a significant rise in the use of
recycled material to make a product which itself would be recyclable at the end
of its useful life.
The 3-Dimensional Blow Moulding process facilitates the manufacture of complex
components or component sub-assemblies of differing materials in a single mould.
This reduces the number of parts in manufacturing, creating significant cost
savings through diminished labour operations and attendant costs as well as a
reduction in the weight of cumulative parts. In addition, there is the
opportunity to add non-plastic materials, and to vary the formula appropriate to
customer requirements. Most of the exploratory work with this process has been
with the automotive industry, where there is a constant need for more complex
assemblies. This also applies to the medical industry, where similar
opportunities exist, but with a wider spectrum of products.
3DM is not a manufacturing company. 3DM exploits its Intellectual Property
assets through licencing agreements and subsequent royalty revenues. In some
cases, 3DM also takes a minority equity stake in the licensee company. This
business model offers a low cost entry into target markets with significant
upside potential, but without the intense capital investment of developing a
design and manufacturing function.
Prior to 3DM's involvement in polymers, its main businesses were industrial
activities in the Kyrgyz Republic. These have been reduced, but 3DM retains a
small industrial portfolio and an interest in a woollen mill.
- Ends -
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