Trading Statement

Transense Technologies PLC
5 March 2002



Trading update


The Board of Transense expects the Company's technology to go into volume
production in 2002, and it is expected that there will be certain announcements
about manufacturing licences in the near future. Accordingly the Board considers
it is appropriate to update shareholders on certain developments that have taken
place to existing manufacturing licences ahead of announcements of other
manufacturing licences with major suppliers, all of whom are well suited to
serving Transense's long term growth potential and the time-scale requirements
of the Company's application licensees.


Transense announces the following changes to its exclusive licences for the
manufacture of the Surface Acoustic Wave ('SAW') and the Applications Specific
Integrated Circuit ('ASIC') components of Transense's specialised sensor
systems. These changes have been due, inter alia, to market pressures of volume
and timescale, dual-sourcing requirements, improvements in the technology and
corporate reorganisations.


SAW Manufacture

In June 2000 Transense granted the Sawtek Inc. ('Sawtek') subsidiary,
Microsensor Systems Inc., an exclusive licence for the manufacture of the SAW
component of Transense's specialised sensor system. The subsequent
reorganisation between Sawtek and Triquint Semiconductor, Inc. brought about the
divestment of Microsensor Systems Inc. and led to Sawtek asking Transense for a
termination of the exclusive manufacturing licence held by Microsensor Systems.
This has been mutually agreed and Transense has offered to work with Sawtek on a
non-exclusive basis.


With the expectation of a number of non-exclusive SAW manufacturing licences in
the future, the individual SAW manufacturers will be able to customise their SAW
devices using their manufacturing processes and know-how. Some will offer
'packaged' SAW devices and others just the SAW dies. This will give Transense
more flexibility in meeting the needs of its application licensees and also
allow the Company the opportunity to enter into packaging licences where
appropriate.


ASIC Manufacture

Under the terms of the exclusive agreement announced in July 2000, Atmel
Grenoble ('Atmel') has committed considerable funds and resources to the
development of torque ASICs. A recent Atmel reorganisation has designated
Atmel's German subsidiary as the supplier to the automotive industry and
consequently Transense is changing its licensee to this subsidiary. Furthermore
in order the meet the urgent requirement for tyre pressure sensors, Transense
has developed a patented 'interim' electronic control technology which involves
taking components 'off-the-shelf' from other major electronic suppliers. As a
result, it has been agreed that the pressure ASIC supply shall be non-exclusive
and the licence agreement has been varied accordingly.




Commenting, Transense Chief Executive, Jim Perry, says:


'When raising money in 1999, prior to our admission to AIM, we stated that
manufacturing would start in 2002. We are delivering on our promise and this
will be further reinforced by future announcements. The way we negotiate our
licence deals enables the parties to cope with unforeseen events and ensures
that our technology is driven forward to meet not only our targets, but those of
our application licensees and shows the good working relationships between the
parties.


Two weeks ago, on the SmarTire stand at TIRE TECHNOLOGY EXPO 2002 in Hamburg,
Transense's tyre pressure technology was demonstrated to the public for the
first time. It created a great stir in the industry and SmarTire intends to make
further statements about this shortly. In line with Company policy, it is for
our licensees to make announcements about their products that incorporate
Transense's technology and not us. We would like to emphasise that we do not
manufacture any product ourselves and we only license the technology that makes
the product possible.


We believe the commercial potential of applications utilising Transense's
technology is considerable and we remain confident that the Company will deliver
its first significant royalty revenues and become cash positive during 2002.'




For further information, please contact:


Transense Technologies plc                                   01869 238 380

Jim Perry, Chief Executive

www.transense.co.uk


Clerkenwell Communications                                   020 7713 0900

John Coyle                                                   07770 687 370



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