Traction Technology Plc



Admission to AIM



Subscription of 3,010,462 Ordinary Shares at 28p per share to raise #843,000





Traction Technology Plc ("Traction" or "the Company"; TIDM: TRAC), the designer,
developer and manufacturer of hybrid and all-electric vehicle propulsion
systems, was today admitted to trading on AIM following a Subscription of
1,964,286 Ordinary Shares at 28p per share ("the Issue Price") to raise #550,000
gross. On Admission, certain existing shareholders and other private
shareholders have agreed to subscribe for a further 1,046,176 new Ordinary
Shares at a price of 28p per Ordinary Share to raise #293,000. On Admission,
the Company will have a market capitalisation of approximately #9,333,000.
Beaumont Cornish Limited is acting as the Company's Nominated Adviser and Gall
and Eke Corporate Partners Limited is acting as the Company's Broker.

Traction's hybrid and all-electric propulsion systems are aimed at transport
applications in the inner city where vehicles have high stop-start duty cycles.
The technology is ideally suited to buses, taxis, refuse and postal vehicles and
does not compete directly with the major passenger vehicle manufacturers.

Increasing pressure from environmental regulatory bodies on carbon and other
emissions is being addressed by transport providers, such as Transport for
London who themselves stated in November 2006 that hybrid buses are a key part
of its plan to meet emission reduction targets.

Small scale trials with Epsom Coaches, who operate vehicles on behalf of
Transport for London, have confirmed that improvements in miles per gallon and
emissions reductions can be achieved using Traction Technology's hybrid
products.

Traction has a Board with substantial relevant industry experience:

Nick Brayshaw OBE, Non-Executive Chairman, was Group Chief Executive of Wagon
Plc as well as being an independent member of the Department of Trade and
Industry Enterprise and Business Group. He is currently Chairman of AIM-Listed
Stadium Group plc and of the CBI National Manufacturing Council. Traction's
Group Chief Executive, Bob Dover, has over 30 years' automotive experience with
the likes of Jaguar Cars, Land Rover and Aston Martin Lagonda, having held the
position of Director of Manufacturing for both Jaguar and Land Rover.

Technical Manager, Richard Cooke, has been a Chartered Engineer for over 14
years and has over 20 years' experience managing the development of complex
automated electro-mechanical machines, as well as being a drive systems and
control specialist.

Commenting, Nick Brayshaw, Chairman of Traction Technology, said:

"The successful Subscription has secured the necessary resources for the Company
to come to AIM and provide significant working capital. Admission will not only
give the Company greater visibility but also allow potential investors to share
in the future of a demonstrably successful technology that delivers proven,
substantial environmental benefits."

Traction Technology plc
Total Voting Rights

In conformity with the Transparency Directive's transitional provision 6 the
Board of Traction Technology plc (the 'Company') is required to notify the
market of the following:

As at the date of this announcement, the Company's issued share capital consists
of 33,333,333 ordinary shares with a nominal value of 3p each, with voting
rights ('Ordinary Shares'). The Company does not hold any Ordinary Shares in
Treasury.

Therefore the total number of Ordinary Shares in the Company with voting rights
is 33,333,333.

The above figure of 33,333,333 Ordinary Shares may be used by shareholders in
the Company as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change to their
interest in, the share capital of the Company under the Financial Service
Authority's Disclosure and Transparency Rules.

ENDS

For further information, please contact:
Traction Technology plc
Nick Brayshaw
Tel +44 (0) 1403 791 392
Beaumont Cornish Limited
Roland Cornish
Tel +44 (0) 20 7628 3396