Final Results

Transense Technologies PLC
29 March 2004

Date:                          29 March 2004
On behalf of:                  Transense Technologies plc
Embargoed until:               0700hrs



CHAIRMAN'S STATEMENT

I am pleased to advise you that this has been an excellent development year for
Transense, with a strengthening of the technology and a quickening of pace as we
approach product programme start dates.



It is important to state at the outset that we are a technology research
licensing company with only modest income at this stage in the development
cycle. This income comes from engineering and license payments but the
substantial royalties we foresee will not commence until our licensees bring
their product to the market place. We continuously give commercial, engineering
and technological support to encourage them forward with their specific product
programmes.



This development phase of the cycle often seems very slow and frustrating but as
I describe later we believe our two main projects are on target. The tyre
pressure monitoring system 'TPMS' should commence with trucks at the end 2004,
with royalties due in 2005, and on cars for the 2006 Model Year, while the
electric power assisted steering 'EPAS' should commence in 2005.  Many other
applications for our surface acoustic wave (SAW) technology have the potential
to succeed and I refer to some of these in the following review.



The year under review was one of increased activity in supplying engineering
development services to our licensees, with increased turnover from £123,000 to
£262,000. Though the loss of £1,077,000 was £183,000 lower than last year, we
still have some considerable way to go before entering positive cash flow
territory. Our staff numbers increased to 22 compared to 20 last year, but
strict control was kept on overheads with cash control remaining a priority. At
the end of December 2003 cash balances were £2.1 million, boosted by the 5%
equity placing in August last, which raised £1.2 million. At the end of March
this year they stand at £1.8 million.



We have made substantial progress in the last year. We signed two more
significant manufacturing licence agreements during the course of the year. The
first, with Temex in February, to make pressure 'SAW' devices for us, and the
other, with Melexis in November, to make the application specific integrated
circuits (ASIC) needed to interrogate our SAW sensors.



Shareholders will recall that the previously announced licences with Sawtek and
Atmel should have exploited these two very important manufacturing aspects of
our business. Unfortunately, because of restructuring, both licensees failed to
perform and this could have caused a severe setback for us. As it is, our
remedial actions succeeded and the delays were not serious. The new
manufacturing licensees are now supporting the on-going programmes of our
application licensees in tyre pressure monitoring and electric power-assisted
steering.



Our recent engineering and commercial files record a further eight projects for
development while our existing total projects list already number 16 with
revenue potential over the coming years.



The SAW devices for TPMS being produced by Temex have been under intensive
testing for over two years and the performance now being achieved is
exceptional. After manufacture, these devices are shipped to Honeywell for
packaging into a sensor and then shipped on to our respective licensees. By the
end of the year to December 2003 3,000 devices had been shipped to Honeywell as
part of the on going testing programme and this is expected to rise
substantially through the current financial year. The ASIC design is now close
to completion and product is anticipated to be ready for testing in the last
quarter of this year. Meanwhile, our discrete component approach will allow us
to cater for the initial volume sales.



One of the major break-throughs by our technical team has been to incorporate
both the pressure and torque requirements into a single ASIC. In the past, two
devices would have been required, but this new single ASIC gives us advantages
in development speed, reduced complexity and cost/economy of scale. A number of
other significant advances have been made for which we have filed patent
applications. Last year, we reported a total of 6 granted patents and 25
applications. We now have 14 patents granted and 21 applications filed. The cost
of maintaining and filing new applications was £164,000 (2002: £183,000).
Overall, I am pleased to state that the development of our technological base
and staff has continued to grow strongly, giving us renewed confidence for the
future.



As our licensees' products with Transense's patented technology draw near to
market launch, confidentiality strictures increase concerning their precise
launch timing because of competitive pressures.  Forever a difficulty of
licensing development companies, this secrecy does not make it easy to be
certain when the launch of these products will take place.  However it is
important, regardless of this, for our shareholders to be given a reasonable
idea of when our licensees' products might be coming to market, and this can be
summarised as follows:



•      TPMS    Proceeding well with three key routes to market over time.
               Our earlier statement on this programme referring initially to 
               trucks was that volume production was unlikely to commence until 
               late 2004, with cash receipts becoming due in early 2005. On 
               cars, the indication was of 2006 Model Year start.  At this 
               point, we have no reason materially to change these timings.

•      EPAS    Proceeding well, our licensees are still on target for
               systems incorporating our technology to go into production during 
               2005.

I must caution against over-reliance on these timings. However, we feel
confident that at least one of our licensees will announce its marketing
intention publicly before the end of this year, adding to the momentum to
market. If any confirmed material change occurs in these above timings, we will
advise the market with an appropriate trading statement.



Last year Wheelsure was taking up too much of our technical time and we
appointed a dedicated management team to spin out the Company as an independent
concern. This was successfully accomplished. Shareholders of Transense were
offered preferential rights to subscribe for shares in Wheelsure at 10p a share,
which came down to 8p if you took EIS relief into consideration. Wheelsure is
making good progress and as at March 26th the shares were changing hands with JP
Jenkins Limited on a matched bargain basis of approximately 24p each. Under the
terms of the transaction, Transense recovered its outlay, and also retained a
12% shareholding in the enlarged Company at nil cost.



In addition to discussions taking place to broaden our licensee base for capital
TPMS and EPAS, we are pleased to announce a funded, demonstration project is
about to start with a major vehicle manufacturer to use our technology in torque
systems for powertrain (engine & transmission), driveline and vehicle stability
applications.

This is an important extension of our product licensing, since, for the first
time, we now have a large OEM looking to integrate a series of our sensors into
their vehicles. We have also received, from a senior level in another major
vehicle manufacturer, a request to present our technologies for similar
applications.



All companies need constantly to review the challenges facing them. Our key
challenge is protecting our patent base and developing technological growth in
depth. We are strong on this score.  We need to track competitive technology
offerings and evaluate any threats they might pose - and although new offerings
can always surface, it was worthy of note that TPMS battery-less offerings of
late have reduced rather than increased.



As we approach the market, we need to continue our search for strategic partners
to strengthen our competence, broaden our product offering, reduce financial
risk and improve revenue growth. We need to review our organisation structure
and how it must be developed and strengthened, as well as our staff needs and
rewards structure, in order to support this increase in growth.



On behalf of the Board, I would like to thank all in the developing Transense
team for their dedication and hard work over the past year. We value their
contribution highly and look forward with them to the exciting opportunities
ahead as we drive our way to market. The market for Transense's broadening
intellectual property rights remains very significant and highly attractive. I
am confident that with our strong team, we will reach very successful outcomes
as our development programmes reach fruition over the coming years.



Peter Woods
Chairman                                                          29 March, 2004




Profit & Loss Account for the year to 31 December 2003

                                                                                      2003            2002
                                                                                     £'000           £'000
Turnover                                                                               262             123
Cost of Sales                                                                         (45)            (27)
Gross profit                                                                           217              96

Administration expenses                                                            (1,432)         (1,508)

Operating Loss                                                                     (1,215)         (1,412)

Net interest income                                                                     56             100

Loss on ordinary activities before taxation                                        (1,159)         (1,312)


Taxation                                                                                82              52
Loss on ordinary activities after taxation                                         (1,077)         (1,260)

Dividends                                                                                -               -

Loss per share                                                                      (2.1p)          (2.5p)




Balance Sheet at 31 December 2003
                                                                2003                            2002
                                               £'000           £'000          £'000            £'000
Fixed Assets                                                   1,492                           1,401

Current assets:   Debtors                        141                            302
                  Investments                      -                             51
                  Cash                         2,071                          1,849
                                               2,212                          2,202
Less: creditors falling due within one           112                            175
year

Net Current assets                                             2,100                           2,027

Net Assets                                                     3,592                           3,428
Capital & reserves:
                  Share capital                                5,319                           5,066
                  Share premium                                3,351                           2,363
                  Profit & Loss                               (5,078)                         (4,001)
                  account
Shareholders' funds                                            3,592                           3,428



Cash Flow Statement for the Year to 31 December 2003
                                                                                      2003            2002
                                                                                     £'000           £'000
Net cash outflow from operating activities                                         (1,128)         (1,105)

Returns on investments and servicing of finance                                         56             100

Taxation         Corporation tax received                                              134              20

Capital expenditure and financial investment                                         (222)           (343)
                                                                                   (1,160)         (1,328)

Disposals and (acquisitions)                                                             -               -

Equity dividends paid                                                                    -               -
Cash outflow before financing                                                      (1,160)         (1,328)

Management of liquid resources                                                       (159)           1,430

Financing        Issue of new ordinary shares                                        1,291               -

(Decrease)/increase in cash in the year                                               (28)             102

Reconciliation of operating loss to net cash flow from operating activities
Operating loss                                                                     (1,215)         (1,412)
   Depreciation, amortisation etc                                                      132              84
   Profits on disposal of fixed assets & current asset investment                     (41)               -
   Net movement in current debtors & creditors                                         (4)             223
Net cash outflow from operating activities                                         (1,128)         (1,105)


Reconciliation of net cash flow to movement in net funds
  (Decrease)/increase in cash in the year                                             (28)             102
   Increase/(decrease) in cash flow from liquid resources                              159         (1,430)
  Change in net funds resulting from cash flows                                        131         (1,328)
  Gain on sale of current asset investment                                              40               -
  Conversion of trade debtor into current asset investment                               -              51
  Movement in net funds in the year                                                    171         (1,277)
  Net funds at 1 January                                                             1,900           3,177
  Net funds at 31 December                                                           2,071           1,900


Analysis of net funds
                                                                                     Current
                                                            Liquid                     asset
                                                         Resources      Cash     investments     Total
                                                              £000      £000            £000      £000
  At 1 January                                               1,700       149              51     1,900
   Cash flow                                                   250      (28)            (91)       131
  Non cash charges                                               -         -              40        40
  At 31 December                                             1,950       121               -     2,071



Notes to the Preliminary Results for the Year 2003

1.   The Accounts

     The summary of results for the year to 31 December, 2003 does not 
     constitute statutory accounts within the meaning the Section 240 of the 
     Companies Act 1985. The full statutory accounts, which will be available to 
     shareholders shortly, have been reported on by the Company's auditors but 
     have not yet been delivered to the Registrar of Companies. Full accounts in 
     respect of the year to 31 December, 2002 have been delivered to the 
     Registrar of Companies and the Audit Report on these accounts was 
     unqualified.


2.   Subsidiary Undertaking

     Wheelsure Limited, a 75% owned operating subsidiary undertaking at the 
     beginning of the year, was acquired by Wheelsure Holdings plc on an 
     exchange of shares basis. After completion of an offer for sale in August 
     2003 by Wheelsure Holdings plc, the Company's investment reduced to 12%. 
     Accordingly, as the Company no longer retains a controlling interest in 
     Wheelsure Limited or Wheelsure Holdings plc, consolidated financial 
     statements are no longer required to be reported. The 2002 comparative 
     figures shown in the financial statements are also not consolidated.


3.   The Annual Report and the AGM

     The Annual Report and Accounts will be posted to shareholders by the end of
     April and the Annual General Meeting will be held on 21 May, 2004.



For further information please contact:

Jim Perry, Chief Executive
Transense Technologies plc               01869 238380

Emma Kane, Chief Executive               020 7955 1410
Redleaf Communications Ltd               07876 338339


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