Interim Results

Transense Technologies PLC
14 September 2000


Chairman's Statement and Interim Results
for the 6 months to 30 June 2000.

I am pleased to report that the first six months of this year
marked  a  major  milestone  in the  company's  history  with
manufacturing licensing agreements being agreed with  two  of
the  largest  companies in their field. In May we  signed  an
exclusive  agreement with Sawtek one of the  fastest  growing
manufacturers of Surface Acoustic Wave (SAW) devices  in  the
world  with  unit sales running at 150 million a year.   This
licence has already brought us exciting new opportunities.

We followed this up in July signing an exclusive licence with
Atmel  Grenoble.  This  company is  the  merged  business  of
Thomson-CSF  the  French integrated chip  manufacturers,  and
Atmel  Corporation of America.  Atmel are one of the  largest
integrated chip manufactures in the world and as such make  a
formidable partner.

Under  the terms of these two agreements the high cost burden
of  developing components in these respective  fields  is  no
longer  a  liability of Transense. In addition  to  Transense
receiving a royalty on sales of all products relating to  our
patented  core  technology we can also  offer  our  potential
customers  a  high  quality,  high  volume  component  supply
resource.

Actual  sales revenues remain low, but this is no  reflection
on  our  efforts nor the potential users' enthusiasm for  our
technology.   Many  of  our customers are  now  awaiting  the
Application  Specific Integrated Circuit (ASIC),  which  will
house  all  our  electronics. After two  years  of  intensive
design  and development work the first prototype devices  are
now  expected  at the end of this year. Many new  doors  have
also  been  opened  and, in line with our  strategy,  we  are
working towards potential future licence deals.

From a management point of view our expenses at the half-year
stage  are running true to internal forecasts.  We have spent
more  than  anticipated on new highly skilled personnel,  but
less than expected on R&D as a large part of these costs  are
now  to  be  absorbed by our new partners. We are  of  course
still  actively  involved in developing  our  technology  for
other  potential applications such as gyros for mapping.   As
you  are  aware  we  try  to  do  this  in  partnership  with
Government which gives rise to associated Government grants.

I  am  sure you will be pleased to see from the balance sheet
that we have ended the first half of the year with more funds
than  when we started. You will recall that in December  last
year we raised a total of £1.9 million after expenses to meet
our funding needs. Since then, as a result of the exercise of
options and strong cost management, cash at our disposal  has
risen to £2.1 million.

We  continue  to  believe  that  the  Company's  strategy  of
licensing   its   technology  without   being   involved   in
manufacturing is the right course to take.

The  Directors  consider  that the Company  can  successfully
exploit  the  opportunities that are being presented  and  is
well positioned for the future.


Graham Jarrett
Chairman
13 September 2000



Transense                                                     
Technologies plc
Profit & Loss                                                 
Account for the 6
months to 30 June
2000
                                                             
                                    6 months to              6 months to      
                                     30-Jun- 99               30-Jun- 00 
                                        £000                     £000   
                                                              
Turnover                                      54                       6 
Cost of Sales                                (16)                     (3) 
Gross profit                                  38                       3 
                                                              
Administration                                                 
expenses                                    (192)                   (188)
                                                              
Operating Loss                                           
(including Long                                           
Term Provision no
longer required
£200,000 (1999 £ nil)                       (154)                   (185) 
             
                                                              
Interest income               0                          56          
Interest expense            (15)             (15)         0           56 
                                                              
Loss on ordinary                                                     
activities before
taxation                                    (169)                   (129)
                                                              
Taxation                                       0                       0 
Loss on ordinary                            
activities after
taxation                                    (169)                   (129)
                                                              
Dividends                                      0                       0 
                                                              
Loss per share: Basic                       (2.3)p                  (1.2)p 
Fully Diluted                               (2.0)p                  (1.0)p 
                                                              
                                                              
Balance Sheet at 30                                           
June 2000
                                                              
                                     31-Dec- 99        30-Jun- 00 
                                        £000              £000
                                        
                                                              
Fixed Assets                                 713                     844 
                                                              
Current assets                                           
Debtors                           54                      44       
Cash                           1,928                   2,146
                                                
                               1,982                   2,190  
        
Current liabilities                                           
Creditors                        195                       93      
Accruals                         219                       20          
                                 
                                 414                      113 
         
Net Current assets                         1,568                   2,077 
                                                              
Total assets less                    
current liabilities                        2,281                   2,921
                                                              
Provision for                    
liabilities and
charges                                     (200)                       0
                                                              
Total assets less                    
total liabilities                          2,081                    2,921
                                                              
Capital & reserves                                           

Share capital                              1,038                    1,161
Share premium                              2,487                    3,333 
Other capital                                  5                        5 
reserve
Profit & Loss         
account                                   (1,449)                  (1,578)
Shareholders' funds                        2,081                    2,921 



Transense                                                          
Technologies plc
Cash Flow Statement                                                
for the 6 months to
30 June 2000
                                                                  
                                         6 months to        6 months to       
                                          30-Jun- 99         30-Jun- 00  
                                            £000               £000   
                                                                   
Net cash outflow from                          
operating activities
Returns on                                              
investments and
servicing of finance                               (63)              (658)
                          
Interest received                       0                  56          
Interest paid                         (15)                  0          
                              
                                                                   
Net cash(outflow)                                              
from returns on
investments
and servicing of                         
finance                                            (15)                56
                                                                   
Taxation  UK                                            
Corporation tax                                                         0
                                                                   
Capital expenditure                                              
Payments to acquire                                (90)               (81)    
intangible fixed assets
Payments to acquire                     0                 (68)          
tangible fixed assets
Payments to acquire                     0          (90)      0       (149) 
investments
                                                                   
                                                  (168)              (751) 
                                                                   
Equity dividends paid                                0                  0 
                                                                   
Cash outflow before financing                      (168)             (751) 
Financing                                              
Issue of new ordinary                 283                  969          
shares
Short term loans                       34           317      0        969 
                             
                                                                   
Increase cash in the                                149               218 
period
                                                                   
                                                                   
Reconciliation of                                              
operating loss to net
cash outflow from
operating activities
                                                                   
Operating loss                                     (154)             (185) 
Depreciation and                                      4                18 
amortisation
Decrease in debtors                                  45                10 
Increase / (Decrease)                                40              (301) 
in creditors
Decrease in               
work in progress                                      2                 0
Decrease in                                           0              (200) 
provision for
liabilities
and charges
                                                    (63)             (658) 
                                                                   
Reconciliation of net                                              
cash flow to movement
in net debt
                      
Increase/(decrease) in             
cash in the period                                  149               218
Net funds at 1 January                                4             1,928 
Net funds at 30 June                                153             2,146 
                         



NOTE:

At  31  December  1999, the Company had made a  provision  of
£200,000  for  the  Employer's National Insurance  charge  on
outstanding   employees'  share  options   should   they   be
exercised.   At  30 June 2000, the Company has reversed  this
provision  on  the  basis that legislation has  now  received
Royal  Assent  which will enable the company to transfer  the
Employer's  National Insurance liability  onto  the  relevant
employees.  The elections to transfer the liability have been
signed  by the Company and the employees concerned  but  have
not yet been formally approved by the Inland Revenue.

In  the  event that Inland Revenue approval is not ultimately
obtained, for whatever reason, then, depending upon the share
price  at  the dates on which the options are exercised,  the
Company  would  be  required to meet the Employer's  National
Insurance  liability which, based on the share  price  at  30
June 2000, would have necessitated a provision to the maximum
potential liability of £2.2 million.


Independent Review Report to Transense Technologies plc

Introduction

We have been instructed by the company to review the
financial information set out on pages 2 to 4 and we have
read the other information contained in the interim report
and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information
contained therein, is the responsibility of, and has been
approved by, the directors.  The Listing Rules of the
Financial Services Authority request that the accounting
policies and presentation applied to the interim figures
should be consistent with those applied in preparing the
preceding annual accounts, except where any changes, and the
reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained
in Bulletin 1999/4 issued by the Auditing Practices Board.  A
review consists principally of making enquiries of management
and applying analytical procedures to the financial
information and underlying financial data and based thereon,
assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed.  A
review excludes audit procedures such as tests of controls
and verification of assets, liabilities and transactions.  It
is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a
lower level of assurance than an audit.  Accordingly, we do
not express an audit opinion on the financial information.

Review conclusion

Included in the Cash Flow Statement and the Profit & Loss
Account summary are comparative figures for the six-month
period ended 30 June 1999.  These figures are unaudited and
have not been subject to review.

On the basis of our review, we are not aware of any material
modifications that should be made to the financial
information as presented for the six months ended 30 June
2000.


BDO Stoy Hayward
Chartered Accountants
Bromley, Kent, BR1 3WA
13 September 2000


For further information, please contact:

Jim Perry
Chief  Executive, Transense Technologies              01869 238 030

John Coyle
Clerkenwell Communications                            020 7713 0900
                                                      0370 687 370
                                                      07699 727 796 (pager)

Graeme Bayley
Manager, Growth Companies Team, HSBC                  020 7336 9000