Annual Report and Accounts

Traction Technology PLC
31 March 2008



                            Traction Technology Plc
                                  (AIM: TRAC)


                              Report and Accounts

Traction Technology Plc ('Traction' or the 'Company'), which designs and
supplies environmentally friendly, low emission series diesel electric hybrid
engine systems, announces that the Report and Accounts for the seven month
period ended 31 December 2007 has today been sent to shareholders and is now
available to be downloaded from the Company's website at www.ttplc.co.uk.

The period under review has included the following operational highlights:


  • TRIBRID power-pack launched in July 2007 - the first commercially
    available 'supercap' powered hybrid bus in the UK. This vehicle has the
    ability to draw on three separate power sources - the diesel engine,
    batteries or super-capacitors.

  • Memorandum of understanding signed with The Optare Group in November 2007
    to jointly develop a range of single deck supercap hybrid vehicles for the
    UK Market. Subject to satisfactory trials of the first vehicle, Optare has
    taken an option on up to a further 10 vehicles.

  • Contract signed with Merseytravel to supply four supercap hybrid Optare
    Solo buses during 2008. This followed extensive competitive evaluation by
    Merseytravel and stands the Company in very good stead for future trials in
    London where the Company will be running against the same competition and
    others.

  • Four vehicles are in current service with operators; to date these
    vehicles have completed over 80,000 miles, gaining real time experience and
    operational data on their performance with Traction's hybrid engine system.

  • Technical capability increased during the period and the Company is
    currently designing the next generation of hybrid engine control system
    which will be flexible and scalable to larger and smaller vehicles as well
    as provide more effective energy management and further increase
    reliability.


Chairman, Nick Brayshaw commented:

'Having demonstrated our capability on hybrid buses in the UK our Board believes
that Traction is now the most technologically advanced developer of series
hybrids in the UK and is now pursuing a number of other opportunities within the
low carbon vehicle and energy recovery markets as well as looking to develop
business opportunities overseas.'


Contacts:

Traction Technology plc             Ambrian Partners Ltd           Parkgreen Communications Ltd
Nick Brayshaw, Chairman             Richard Brown                  Paul McManus
01403 791392                        Richard Greenfield             020 7479 7933
www.ttplc.co.uk                     020 7634 4700                  07980 541 893
                                                                   [e-mail]


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