Admission to AIM

Traction Technology PLC
21 December 2006

For release


21 December 2006






                            Traction Technology Plc



                                Admission to AIM



  Subscription of 3,010,462 Ordinary Shares at 28p per share to raise £843,000





Traction Technology Plc ('Traction' or 'the Company'; TIDM: TRAC), the designer,
developer and manufacturer of hybrid and all-electric vehicle propulsion
systems, was today admitted to trading on AIM following a Subscription of
1,964,286 Ordinary Shares at 28p per share ('the Issue Price') to raise £550,000
gross.  On Admission, certain existing shareholders and other private
shareholders have agreed to subscribe for a further 1,046,176 new Ordinary
Shares at a price of 28p per Ordinary Share to raise £293,000.  On Admission,
the Company will have a market capitalisation of approximately £9,333,000.
Beaumont Cornish Limited is acting as the Company's Nominated Adviser and Gall
and Eke Corporate Partners Limited is acting as the Company's Broker.

Traction's hybrid and all-electric propulsion systems are aimed at transport
applications in the inner city where vehicles have high stop-start duty cycles.
The technology is ideally suited to buses, taxis, refuse and postal vehicles and
does not compete directly with the major passenger vehicle manufacturers.

Increasing pressure from environmental regulatory bodies on carbon and other
emissions is being addressed by transport providers, such as Transport for
London who themselves stated in November 2006 that hybrid buses are a key part
of its plan to meet emission reduction targets.

Small scale trials with Epsom Coaches, who operate vehicles on behalf of
Transport for London, have confirmed that improvements in miles per gallon and
emissions reductions can be achieved using Traction Technology's hybrid
products.

Traction has a Board with substantial relevant industry experience:

Nick Brayshaw OBE, Non-Executive Chairman, was Group Chief Executive of Wagon
Plc as well as being an independent member of the Department of Trade and
Industry Enterprise and Business Group.  He is currently Chairman of AIM-Listed
Stadium Group plc and of the CBI National Manufacturing Council.  Traction's
Group Chief Executive, Bob Dover, has over 30 years' automotive experience with
the likes of Jaguar Cars, Land Rover and Aston Martin Lagonda, having held the
position of Director of Manufacturing for both Jaguar and Land Rover.

Technical Manager, Richard Cooke, has been a Chartered Engineer for over 14
years and has over 20 years' experience managing the development of complex
automated electro-mechanical machines, as well as being a drive systems and
control specialist.

Commenting, Nick Brayshaw, Chairman of Traction Technology, said:

'The successful Subscription has secured the necessary resources for the Company
to come to AIM and provide significant working capital.  Admission will not only
give the Company greater visibility but also allow potential investors to share
in the future of a demonstrably successful technology that delivers proven,
substantial environmental benefits.'



Ends



Enquiries:
Traction Technology Plc                 Beaumont Cornish Limited           Parkgreen Communications
Nick Brayshaw, Chairman                 Roland Cornish                     Ben Knowles / Brendan McNamara
[phone]                    [phone]               [phone]
www.ttplc.co.uk

Editors Notes

About the Company

Traction was formed to exploit the growing demand for environmentally friendly
technology.  In May 2006 it acquired the assets, including the intellectual
property, of Eneco Limited, a company in administration, which had previously
operated in this sector as a designer and manufacturer of hybrid power packs for
installation into buses.

How the technology works

Traction's series hybrid power pack technology used in Hybrid electric vehicles
('HEVs') differs from the parallel hybrid technology currently used in some
passenger cars.  Under Traction's system, the vehicle's wheels are driven by an
electric traction motor powered by battery and recharged by diesel engine.  A
control system determines how much power comes from the battery and how much
from the engine/generator at any one time.  In parallel hybrids, there is a
direct link between the engine and the wheels, where a normal internal
combustion engine is supplemented by an electric motor.

The significant advantage of Traction's system is that, because the engine is
not directly connected to the wheels, it does not have to provide the widely
varying power demands of the stop-start cycle; it is therefore able to operate
in a narrow power range at close to optimum efficiency.


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