Trading Update

Gas Turbine Efficiency PLC
23 January 2008


23 January 2008


               Gas Turbine Efficiency plc ('GTE' or 'the Group')
                Pre-close trading and industrial strategy update

     Strong growth achieved in 2007 led by industrial revenue, up six-fold

GTE, a leading provider of advanced systems to enhance performance of aviation
and industrial turbines, is pleased to announce strong growth in 2007 led by an
almost six-fold increase in industrial based revenues and a robust order backlog
for 2008.

This reflects increasing global demand for GTE's solutions for reducing fuel
costs, carbon emissions and equipment downtime.

After successfully establishing the business in the aviation segment with its
exclusive partner, Pratt & Whitney during 2006, GTE achieved tremendous success
in the industrial segment last year with a major expansion of this business and
the successful completion of four agreements with major Original Equipment
Manufacturers (OEMs).

Industrial revenues increased approximately 505% to $12.7m (2006: $2.1m). The
aviation business also continued to perform strongly by doubling its revenues to
$5.2m in 2007. As a result, the Group expects its total revenue for 2007 to
increase over 270% to $17.8m compared with the corresponding period last year
(2006: $4.7m). Due to a continued strong order book, the total current order
backlog is up 36% to $7.7m compared with January 2007. Full year results for
2007 are expected to be released in April.

Sales to leading OEMs increased more than three-fold from $3.9m to $13m and end
user sales increased from $0.8m to $4.8m.

GTE achieved this success by following a bold strategy to extend the business
model by completing four OEM qualifications in parallel. The Group also expanded
its solutions portfolio with the acquisition of Control Center, LLC and ARES
Technology, LLC during the year.

GTE added great depth and expertise to its presence in the energy services
sector with the recruitment of a number of senior level industry experts, each
with more than 20 years track record with global turbine manufacturers.

The combined strategy of acquisitions alongside organic Research & Development
has significantly expanded GTE's core product lines as seen below:

                2006                                 2007

Compressor Cleaning Systems          Compressor Cleaning Systems
                                     Compressor Power Augmentation
                                     Fuel Systems And Metering
                                     Control Systems and Panels
                                     Combustion Monitoring Systems
                                     Aftermarket Parts / Supply Chain
                                     On-Site Installation Services
                                     Combustion Repairs
                                     Combustion Design & Modeling
                                     Combustion Flare Modeling


GTE's enhanced capabilities have established a powerful platform for long term
growth and will continue to drive the Group in three key ways:

  • it moves GTE up the 'value chain' and closer to integrated solutions,
    positioning the Group for long term growth in the gas turbine aftermarket
    segment which is valued at up to $10 billion;
  • it opens up additional high value products to sell through existing
    channels and customer relationships; and finally
  • it creates a broader technology team and patent portfolio.

During the year GTE successfully concluded discussions with several major OEMs
to sign long term commercial contracts which in some cases have been expanded to
include several new product lines. These include: five-year agreement with
Solar, a Caterpillar company, which specialises in manufacturing small to
mid-range turbines; a three-year extension of GTE's exclusive agreement with
Siemens, AB; the three-year contract extension with Rolls Royce and a new
three-year contract with the world's largest OEM in the sector.

Looking forward, GTE plans to continue this successful strategy. The Group will
look to bolster its technology breadth and development through organic R&D and
opportunistic acquisitions. The Group will continue to focus on high value
solutions in the gas turbine aftermarket segment and move to higher value
integrated product and service solutions.

Steven Zwolinski, Chief Executive Officer of GTE, commented: 'The benefits of
GTE's long term strategy for the industrial segment of the business have
resulted in tremendous progress in 2007, positioning the business for long term
growth. The integration of Control Center, LLC and Ares Technology, LLC and
recruitment of industry leading technology players has exceeded expectations,
significantly enhancing the Group's capabilities, foundation for future growth,
and diversification of product lines.'



Enquiries:

Gas Turbine Efficiency plc
Steven Zwolinski, CEO                   [phone]

Libertas Capital
Aamir Quraishi, Matthew Hindhaugh       [phone]

Corfin Communications
Neil Thapar, Harry Chathli              [phone]


About GTE

Gas Turbine Efficiency plc, whose shares are traded on London Stock Exchange's
AIM market (Ticker: GTE), designs, manufactures and markets advanced integrated
solutions for environmental, process and asset optimisation of gas turbines
primarily in the aerospace, industrial and oil & gas sectors. These solutions
include cleaning systems, performance monitoring, fluid and control sub-systems
that improve turbine performance and availability, fuel efficiency and parts
life, resulting in increased profits for our clients and a cleaner environment.
The Group sells its products to blue chip customers worldwide from operational
centres in Europe and the USA.




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