AGM Statement

Transense Technologies PLC
24 May 2002




On behalf of:  Transense Technologies plc

Date:  24 May 2002



Chairman's statement for AGM

You would have seen that soon after the accounts were posted to you last month
we were delighted to announce that we had signed a licence agreement with
Honeywell, the largest manufacturer of pressure sensors in the world. Total
sales of that group are $30 billion a year.


Under terms of the licence, which is non-exclusive, Honeywell will pay us a fee
followed by a royalty on all sensors they sell incorporating the Transense
technology. We have been working on this project with Honeywell since last
November and following the successful production of prototype devices this
month, larger batches will be shipped to customers over the coming months.
Subject to on-going tests continuing to be successful, this will be followed by
volume production at the end of this year. This licence overcomes the challenge
that SAW manufacturers have in packaging their devices and selling direct to the
automotive market where product liability is always a key factor. The time and
money being invested by Honeywell in developing a packaging solution for the SAW
device is another clear endorsement of our technology.


The confidentiality agreements we enter into with all our licensees prevent me
from going into details of exactly what plans are being made by our licensees.
Neither can I reveal how much royalty we receive on sales. What I can say
however is that we are satisfied with the contracts we have and are confident
that shareholders will feel likewise when our royalty income starts to come in
at the end of this year. Our licence holders have been busy developing processes
and products incorporating our technology, and we have been working closely with
them to assist them as appropriate. Significant progress is being made behind
the scenes, and as an example of this I would like to tell you about some of the
work being undertaken by two or our licensees, SmarTire and Michelin.


Last week, SmarTire, another of our licensees, announced that it had signed an
agreement with Visteon to 'develop and market tyre monitoring solutions for
vehicle manufacturers' worldwide. Only two months ago at a tyre show in Germany,
SmarTire demonstrated their new product which incorporates our battery-less tyre
pressure monitoring technology. It attracted considerable attention. Visteon,
which is a spin off from the Ford Motor Company, is a major tier one system and
component supplier to the automotive industry. Ford have made it clear to all
potential suppliers that their wish list includes a battery-less tyre pressure
warning system.


In September last year, Michelin, another of our licensees, announced a link-up
with Bosch. This Company is a major tier one supplier of electronic systems to
the automotive industry including vehicle stability systems (ABS braking,
traction control, etc). Our technology enables tyre pressure monitoring to be
used for the enhancement of a vehicle's stability system, as well as providing
other information that may be required by legislation.


Although there has been a delay in the US TREAD ACT definition of tyre pressure
monitoring by NHTSA, vehicle manufacturers are not waiting for this and are
progressing their own programmes. The delay has been caused by White House
objections to the cost of the current battery tyre pressure systems.


I would like to reiterate that our technology is not for tyre monitoring alone.
It lends itself to many other applications such as electric power steering,
where TT electronics have already taken a licence, crank and drive shaft torque
measurement and braking to name but a few.


All these areas are being addressed and at any given time we are in discussions
with a significant number of potential licensees. Some of these will undoubtedly
come to fruition, some will not. However, as many of these companies are very
large international corporations, negotiations can take a considerable time to
conclude and as such the time between announcements can be somewhat lengthy.


I would like to confirm that commercial production is scheduled to have started
by the end of the year, which will generate our first royalty income.



                         Ends

For further information, please contact:

Jim Perry, Chief Executive

Transense Technologies plc    01869 238 380

John Coyle

Clerkenwell Communications    0207 713 0900

07770 687 370

07699 727 796 (pager)



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