Interim Results

Transense Technologies PLC
03 September 2003


Date:                3rd September 2003
On behalf of:        Transense Technologies plc ('Transense' or 'the Company')
Embargoed until:     0700hrs


Transense Technologies plc
Interim Results for the six months ended 30 June 2003

Chairman's Statement

The first half-year of 2003 has been a period of stability and consolidation for
Transense after the world uncertainties of 2001/2. The improvement in six-month
turnover from £37,000 in 2002 to £180,000 in 2003 was comprised primarily of
contributions from our licensees for our technical support and also includes a
first, albeit very small, contribution from royalties resulting from our tyre
pressure monitoring system technology (TPMS). Our costs for the year are under
strict control and will be in line with budget.

I am pleased to say that the thorough testing being carried out on TPMS is
proving our technology to be very robust and reliable and your Directors are
still of the opinion that it continues to demonstrate itself to be the leading
non-battery system available.

It came as no surprise to us on 6 August that a Federal Court in America ruled
the use of an ABS-based indirect TPMS to be unsafe. This overturned the National
Highways Traffic Safety Administration (NHTSA) decision that indirect should be
used alongside direct interrogation methods. It is now expected that NHTSA will
issue a new rule by next Spring requiring only direct monitoring.  Although
using the ABS to 'deduce' tyre pressure was potentially cheaper than existing
direct systems, we did not view this as a threat since it only worked when tyre
pressures were well below the recommended safety levels and not at all at
certain speeds.

The major push forward for TPMS starts in November this year when it will be
obligatory in America for certain categories of new vehicles such as passenger
cars to start using pressure warning systems. Undoubtedly, larger commercial
vehicles, which are outside current legislation, will also fall into line
because of those safety and operating costs associated with tyre blowouts. The
first of these systems, which is already in the market place, is battery
operated.  We feel the Transense TPMS still gives us a major edge over these
competing products.

The Company also continues to make steady progress in other areas such as
electric power steering and has recently developed and patented a new SAW
device, which will extend our patents in this area for a further 20 years. Our
licensees are still on target for systems incorporating our technology to go
into production in 2005.

Although negotiations with a number of new potential licensees are going well
and we hope to announce further agreements this year, progress has been somewhat
slower than anticipated, due mainly to world market conditions.  As a result,
investors were naturally beginning to question whether we would have need of
further funds - before products using our technology would reach the market
place and the expected royalty streams start to flow.

We still have over £1 million on deposit, but it would be imprudent of your
Directors to let matters reach a stage where we had no alternative but to ask
shareholders for further funds.  To reassure our investors and the market
therefore, we announced last week that we have raised £1.23 million net of
expenses through a placing of approximately 2.5 million new ordinary shares of
which 1.5 million were placed with First State Investments, a new shareholder,
and the balance with two of our existing investment institutions. The placing,
at 50p per share was at a 6% premium to the then market price. Given earlier
market turbulence and share price movements this is a satisfactory conclusion
leaving us well placed for the medium term.

Peter Woods
Chairman
3rd September 2003


Enquiries:

James Perry, Chief Executive                                 Tel:  [phone]
Transense Technologies plc

Emma Kane                                                    Tel:  [phone]
Redleaf Communications Ltd


Notes to Editors:

•    Transense was founded in 1991 and its shares were listed on AIM in 1999;

•    Transense's technology is divided into two business streams:  Torque 
     measurement and Pressure measurement;

•    Current licensees of Transense's technology include SmarTire, Michelin, 
     Honeywell and TT electronics;

•    Further information on Transense is available at the Company's website at 
     www.transense.co.uk



CONSOLIDATED PROFIT & LOSS ACCOUNT
For the six months to 30 June 2003

                                                                            6 months to          6 months to
                                                                           30 June 2003         30 June 2002
                                                                                  £'000                £'000

Turnover                                                                            180                   37
Cost of Sales                                                                      (29)                 (21)

Gross profit                                                                        151                   16
Administration expenses                                                           (916)                (678)

Operating Loss                                                                    (765)                (662)
Interest income                                                                      26                   56

Loss on ordinary activities before taxation                                       (739)                (606)
Taxation                                                                              0                    0

Loss on ordinary activities after taxation                                        (739)                (606)
Minority interest                                                                     6                    6

Loss on ordinary activities after minority interest                               (733)                (600)

Dividends                                                                             0                    0
Loss per share: Basic                                                            (1.4p)               (1.2p)
                Fully diluted                                                    (1.4p)               (1.1p)



CONSOLIDATED BALANCE SHEET
at 30 June 2003

                                                                   30 June                       31 December
                                                                      2003                              2002
                                                   £'000             £'000          £'000              £'000

Fixed Assets                                                         1,516                             1,433
Current assets: Debtors                               94                              269
                Investments                           34                               51
                Cash                               1,205                            1,850
                                                   1,333                            2,170
Current liabilities: Creditors                       125                              125
                     Accruals                         35                               50
                                                     160                              175

Net Current assets                                                   1,173                             1,995

Net assets                                                           2,689                             3,428

Capital & reserves: Share capital                                    5,066                             5,066
                    Share premium                                    2,363                             2,363
                    Profit & Loss account                           (4,718)                           (3,985)

Shareholders' funds                                                  2,711                             3,444
Minority interest                                                     (22)                              (16)
                                                                     2,689                             3,428

CONSOLIDATED CASH FLOW STATEMENT
For the six months to 30 June 2003

                                                                          6 months to           6 months to
                                                                         30 June 2003          30 June 2002
                                                                                £'000                 £'000

Net cash outflow from operating activities                                      (621)                 (531)
Returns on investments and servicing of finance                                    26                    56
Corporation tax received                                                           52                    20
Capital expenditure and financial investment                                    (152)                 (218)
Cash outflow before financing                                                   (695)                 (673)

Financing
Issue of new ordinary shares                                                       50                     0

Decrease in cash in the period                                                  (645)                 (673)

Reconciliation of operating loss to net cash outflow from
operating activities

     Operating loss                                                             (765)                 (662)
     Depreciation, amortisation                                                    69                    40
     Impairment in value of investment                                             17                     0
     Decrease in debtors                                                           73                    62
     Decrease/increase in creditors                                              (15)                    29

                                                                                (621)                 (531)

Reconciliation of net cash flow to movement in net debt

     Decrease in cash in the period                                             (645)                 (673)
     Decrease in value of current asset investment                               (17)                     0

     Movement in net funds in the period                                        (662)                 (673)
     Net funds at 1 January                                                     1,901                 3,177

     Net funds at 30 June                                                       1,239                 2,504


Analysis of net funds
                                                Liquid           Cash        Current asset              Total
                                             resources                         Investments
                                                  £000           £000                 £000               £000
At 1 January 2003                                1,700            150                   51              1,901
Cash flow                                        (600)           (45)                                   (645)
Non cash charges                                                                      (17)               (17)

At 30 June 2003                                  1,100            105                   34              1,239



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