Licensing Agreement Signed

Transense Technologies PLC
5 July 2000


Transense signs world-wide 
Licensing agreement with Atmel.

Transense Technologies has signed an exclusive world-wide licensing agreement
with Atmel Grenoble, which was formed as a result of the merger between the
Atmel Corporation (Atmel) of America and Thomson Semiconducteurs Specifiques,
part of the giant French defence group.  Under terms of the agreement 60% of
the new company is owned by Atmel and 40% by Thomson-CSF.  Atmel is quoted on
NADAQ and at the close last night had a market capitalisation of $8.6 billion
and is one of the largest semiconductor manufacturers in the world.

Under terms of the agreement Atmel will fund the development and manufacture
of the Application Specific Integrated Circuits (ASIC), which will form the
electronic core of Transense's patented Surface Acoustic Wave (SAW)
technology.  Transense will receive a royalty on sales of all the licensed
devices to the application licensees of its technology.  Each SAW sensor
requires one ASIC.

Transense's SAW sensors are used to measure torque, strain and pressure in
applications such as electric power steering, driveline and tyre pressure
monitoring.  These devices can measure minute changes in many automotive
applications and require no power source as they are interrogated through a
non-contact wireless technology.  With vehicle sales running at 50 million a
year and the potential of 25 SAWs or more per vehicle, the market potential
for these devices is considerable.

Jim Perry, Chief Executive of Transense said this morning, 'Last month I
reported that we had signed an exclusive license agreement with Sawtek, to
manufacture the SAW devices that are the core to our technology.  This
agreement with Atmel  completes the jigsaw of who will manufacture the
electronics that are vital to interrogate and extract the information measured
by the SAW sensors.

We chose Atmel as our most suitable partner because of their expertise in
mixed signal ASICs.  The Transense technology enables you to interrogate and
read the SAW sensor in a non-contact way.  This is achieved by sending a
specific radio frequency wave (RF) at the SAW and listening to the return
signal.  Any change in the RF will be proportional to the strain or pressure
on the device.  Atmel is one of the world's leading specialists in the field
of RF circuits and as such, success can be assured in the manufacture of our
devices.

What we have now successfully achieved, by signing these two licence
agreements, are effective partnerships, with two of the most dynamic companies
in the world, in SAWs and ASICs, without any of the constraints and financial
problems that a joint venture could bring.  The savings that can be attributed
to such arrangements are considerable for Transense shareholders because the
Company will not be burdened with the large costs associated with designing
and manufacturing such highly sophisticated devices.

It is also very important that we can now show the automotive industry that
two major component manufacturers believe in our technology enough to commit
to the mass production of devices based on our patented technology.  Now that
we have such commitments, I have every confidence that more application
licenses will follow'.

Jean Vaylet, Chief Executive of Atmel Grenoble said this morning, 'The most
innovative part of the Transense concept is that all applications of it are
based on the same ASIC core.  As such many high volume application products
can be developed and produced within a short lead-time.  This includes the RF
and digital building blocks of the ASIC and the handheld interrogation unit
proposed for some applications.  Large automotive end users are also very
enthusiastic in developing tyre pressure monitoring, EPAS and drive line
sensing systems with this new sensing technology which gives us a high level
of confidence'.


For further information, please contact:

Jim Perry
Chief Executive, Transense Technologies plc             01869  238 030

John Coyle
Clerkenwell Communications                              020 7713 0900
                                                        07770 687 370
                                                        07699  727 796 (pager)

Graeme Bayley
Manager Growth Companies Team. HSBC                     020 7336 9000