Merseytravel contract win

Traction Technology PLC
17 January 2008

                            Traction Technology Plc
                                  (AIM: TRAC)

               Traction Technology confirms agreement with Merseytravel
                        for Supercapacitor Hybrid Buses


Traction Technology Plc ('Traction' or the 'Company'), a designer and deliverer
of environmentally friendly, low emission series diesel electric hybrid engine
systems, announces that it has confirmed a contract with Merseytravel to supply
four hybrid Optare Solo buses. Each will be powered by a Traction hybrid diesel
and supercapacitor power pack and are to be delivered during 2008.

This follows extensive competitive trial evaluation by Merseytravel of an
existing Traction Technology offering. This is the first time that Traction has
been part of a head to head evaluation of its hybrid system and the success in
this trial is seen as a very important indicator in Traction's plans for the
adoption of its offering in the UK market and beyond.

In addition to the vehicle already running, Traction continues to gain valuable
experience on active routes with its hybrid technology and is running vehicles
for Transport for London operator Epsom Coaches, for Merseytravel with Arriva
North West, with Arriva Southern Counties in West Sussex and with Ipswich Buses
Limited.

Nick Brayshaw, Chairman of Traction, commented:

'This is a very important day for Traction as this contract gain shows the
market our technological leadership in the area.  To win this contract in such a
competitive environment stands us in very good stead for future trials in London
where we will find ourselves running against the same competition and others.
We are confident that Traction will continue to prove itself as a leader in its
field of technology in future competitive trials'.

Contacts:

Traction Technology plc             Ambrian Partners Ltd           Parkgreen Communications
Nick Brayshaw, Chairman             Richard Brown                  Paul McManus
01403 791392                        Richard Greenfield             020 7479 7933
www.ttplc.co.uk                     020 7776 6400                  07980 541 893
                                                                   [e-mail]




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