Surface Transforms recently was over-subscribed on their offering - the potential for the products seems good, progress is good and the market for the products is big business. Any comments on the possible transformation of this potential shining surface ?

Surface Transforms PLC
10 May 2004


RNS Release

10 May 2004

Surface Transforms plc signs new contract with the UK Ministry of Defence

Surface Transforms plc, manufacturer of high-technology carbon ceramic
materials, has been awarded its first contract valued at around 40,000 by the
UK Ministry of Defence (MoD). The contract is for Surface Transforms to develop
its unique carbon fibre reinforced ceramic (CFRC) materials for use in body and
vehicle armour.

The brief is for materials that will protect individuals and vehicles against
repeat hit high-power rifle and cannon fire. This work is expected to be
completed within approximately nine months. Subject to satisfactory product
performance further contract work is expected, leading eventually to full-scale
commercial orders within three years.

Confirmation of the new MoD contract follows Surface Transforms' recent
conditional institutional placing which raised 2.7m after expenses. The placing
provides the Company with the capital to increase its number of development
programmes, including the new MoD body and vehicle armour programme, and to
continue to invest in its technology advantage, staff and production capacity.

Current UK combat armour incorporating ceramic plates is a number of years old
and is becoming dated, particularly in relation to new threats specifically
designed to defeat conventional ceramics.

Preliminary work already completed over the past six months at the Royal
Military College of Science has shown that Surface Transforms' standard CFRC has
dramatically increased close shot-to-shot multi-hit performance compared with
standard alumina ceramic armour plates.

The MoD contract represents a new application for Surface Transforms' CFRC
materials which until now have been predominantly used in friction applications
within the automotive and aerospace industries. Based on current prices for
standard performance ceramic plates, the value of the UK market for body armour
for both replacement (maintenance) and new classified protection requirements is
approximately 0.6m per annum, excluding any larger NATO requirements. For
vehicle armour, the UK market value for replacement ceramics is estimated at
0.4m per annum and 1.4m per annum for the new Future Rapid Effects System
(FRES) vehicles which are expected to be commissioned from 2007, both excluding
any larger NATO requirements.

The Ministry of Defence commented:

'There is a worldwide concern to provide increased but affordable ballistic
protection to military assets, at decreased weights. A particular problem with
current lightweight solutions which incorporate ceramic materials is one of
limited multi-hit performance.'

Julio Faria, Managing Director of Surface Transforms, commented:

'We are pleased to have won this important contract from the MoD. This
demonstrates the versatility of our materials for uses beyond aircraft and car
brakes. With new funds being injected from the placing, we are now well
positioned to incorporate our materials in a wider range of programmes, as well
as increasing our presence in the key aerospace and automotive markets.'

For enquiries please contact:

Julio Faria Neil Boom/Sophie Betts
Surface Transforms plc Gresham PR Ltd.
01928 735 498 020 7404 9000

Johnny Townsend/Simon Clements
John East & Partners Limited
020 7628 2200

Details of the Company's business and financial performance and its share price
can be found on the Armshare icon on
www.surface-transforms.com

Notes to Editors

Cheshire-based Surface Transforms manufactures and develops high-tech carbon
ceramic materials such as brakes and discs which are for use in high-performance
cars and aeroplanes and in other non-friction applications such as rocket
propulsion systems. Surface Transforms' ceramic materials are lightweight yet
very strong and able to withstand very high temperatures (up to 3000degreesC).



This information is provided by RNS
The company news service from the London Stock Exchange

Hi Barnymam

Great news from ST today. The contract is for Surface Transforms to develop
its unique carbon fibre reinforced ceramic (CFRC) materials for use in body and
vehicle armour. This is a growth sector with a worldwide market.

Commercial orders not expected for 3 years and the value of this initial research contract is only 40k. Does anybody know if this is before costs or if this will be the end-profit figure?

This news is good as shows diversification of the uses for the products, in general if you look at purely the aerospace and car braking usage, if this goes to plan, it would make SCE around 3GBP per share, based on the markets of other companies in this sector, with the further applications in different market segments, I can only see that there will be a realisation of a much higher share price within a not too long period of time, all being well.

'in general if you look at purely the aerospace and car braking usage,...'? I'm not sure what you mean. At the moment, under KDS, the company has shifted its direction and now concentrates on research contracts.

Still looking good, keep holding, its time is coming.

seeing as if we are making brief comments and not qualifying them, my quick reply is that the shares are trading at about the right level now but will head up in the near future, slowly first but then quicker when the big boys get a bit more courage... I think!

simonchaplin - I would agree with your comments, given the present little dip down I am going to be adding more.

Surface Transforms PLC
28 June 2004


RNS Release

28 June 2004

Surface Transforms signs a Cooperative Agreement with METEK
(Metallverarbeitung GmbH) of Meckenheim, Germany

Surface Transforms plc ('the Company'), makers of high-technology carbon fibre
reinforced ceramic (CFRC) materials for the aerospace and high-performance
automotive markets, has signed a two-year Cooperative Agreement with German
automotive parts supplier METEK. The agreement with METEK, one of Europe's
leading suppliers of braking systems to the automotive industry and owner of
Advanced Materials Lanxide LLC of the USA, is for the design, development and
supply of carbon ceramic brake discs and pads to the European automotive
industry.

Under the terms of the agreement, the Company expects to generate revenues of
Euro 60,000 during the initial testing and development phase of the cooperation.
During later phases of the contract, further income will be derived from road
car model specific licence and supply agreements.

Over the past twelve months Surface Transforms and METEK have completed an
initial period of evaluation and road car testing of carbon ceramic brake discs
and pads. The tests, undertaken at METEK, show that CFRC materials give a
significant improvement in performance over traditional steel brake discs and
organic pads. A 60% reduction in weight and a 50% improvement on stopping force
has been achieved. The three-dimensional structure of the carbon ceramic discs
contributes to very good wear characteristics whilst retaining significant disc
integrity when compared to the competition. These properties have also been
demonstrated in the wear and integrity tests undertaken on Surface Transforms'
aircraft brake discs.

The European steel brake disc and pad market is currently estimated to be
360 million units per annum at a supplier market value of Euro 3.5 billion per
annum. The directors of Surface Transforms estimate that once carbon ceramic
brake technology is accepted by the automotive majors initially up to 1-3% of
the market (principally a proportion of the executive and luxury segments of the
road car market) will adopt the new technology brakes with their superior
braking, handling and environmental performances.

The main points of the Cooperation Agreement, which is in three phases, are:

Phase 1: model specific road car development and testing

Phase 2: extensive model testing of the carbon ceramic braking system and
finalisation of production disc and pad specifications

Phase 3: design, construction and commission of a carbon ceramic
production plant at METEK, subsequent supply of brake discs by METEK to the
automotive industry under licence agreement with Surface Transforms

Commenting on today's announcement, Managing Director of Surface Transforms,
Julio Faria, said:

'This is tremendous news. It has long been the Company's stated objective to
supply parts to the automotive industry for high-performance vehicles. This
first fully-commercial contract to provide METEK with brake discs and pads
represents an important landmark for Surface Transforms, and is especially good
news following on so recently from our prestigious contract with the UK Ministry
of Defence to supply CFRC material for both body and vehicle armour.'

Enquiries, please contact:

Julio Faria Neil Boom/Sophie Betts
Managing Director Gresham PR Ltd.
Surface Transforms plc 020 7404 9000
01928 735 498

Johnny Townsend/Simon Clements
John East & Partners Limited.
020 7628 2200

Further Investor Relations information is available on the Armshare icon on

www.surface-transforms.com
Further information on METEK can be accessed at its website
www.metek-gmbh.de



This information is provided by RNS
The company news service from the London Stock Exchange

Has anyone got any more up to date info please?

trying to work out how bad the news is regarding the delay to the Dunlop agreement...any comments ?

I am not concerned over it, perhaps I should be, but am not. At least things are moving forward and thats good enough for me. Its one of those companies that just needs some good news and away it flies, and there are plenty of good news irons in the fire.

Surface Transforms in agreement with US-based aircraft brake supplier
AFX


LONDON (AFX) - Surface Transforms PLC said it has signed a revenue generating agreement with a major US-based aircraft brake supplier to evaluate carbon ceramic aircraft brake discs.

In half year trading update, the company warned, however, that its agreement with Dunlop Aerospace to develop carbon ceramic materials for a new commercial aircraft model has stalled.

ST, which makes carbon fibre reinforced ceramic (CFRC) materials, said the evaluation period for fully developing the aircraft's brake discs will be longer than the plane's launch timetable.

'Consequently ST's carbon ceramic brakes will not be used during the initial years of the plane's operation,' it said.

The group, which had cash of about 2.95 mln stg on Dec 31 last year, said it has clinched orders for 10 automobile brake systems and expects further orders during the course of the year.

newsdesk@afxnews.com

ma

Surface Transforms PLC
27 January 2005

RNS Release

27 January 2005

Notice of interim results

Surface Transforms plc, manufacturer of high-technology carbon ceramic
materials, will announce its interim results for the six months ended 30th
November 2004 on Wednesday 23rd February 2005.

Enquiries, please contact:

Julio Faria Neil Boom
Managing Director Managing Director
Surface Transforms plc Gresham PR Ltd.
01928 735 498 020 7404 9000



This information is provided by RNS
The company news service from the London Stock Exchange

Price Data
Currency UK Pounds
Price 52.50p
Change Today 0.00p
Volume 1,000
02-Feb Close 52.50p
Shares Issued 13.42m
Market Cap 7.05m
Year End 31-May

What The Brokers Say
Strong Buy 0
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 1

Doesn't seem to be a reason for the fall does there? In that respect I think it's people taking advantage of the situation and hoping to buy back later. However, it's odd that these activities are....... all bunch together.......
However, I still believe in this co and in the product. What we have heard (so far it's 2pm Tuesday) - is that one aircraft won't have their kit fitted at launch. But if I was a betting mad I'd be pretty sure the disign will take into account the benefits - so maybe a retro-fit once everything is sorted out.
This way (sticking with the conventional brakes) they have a known item and can adjust the design to allow for the lower specification. In effect there will be some "extra" braking margin for 'whenever' the ceramic brake kits are used -
Odd though, that Sells are so strong on one day.....oh dear.

Says Bill Johnston of WatsHot.com

Surface Transforms (SCE) is a leading-edge developer of carbon-fibre reinforced ceramic braking and friction materials; the aim of which is reduced wear, improved thermal properties, weight-saving and better performance. It has a patented transformation process, and made early moves to ensure quality control in manufacturing by the time-honoured method of doing it itself. The driving force and major shareholder is Managing Director Julio Faria, whose involvement at the technical forefront is of long standing. Although he had initiated the move from the stage of having a pilot plant to that of the establishment of in-house production facilities, he determined that whilst the company would produce for small-batch markets itself, he would not hesitate to align it to powerful players in the global markets he sought, if this was the best way forward.

At the time of the initial capital raising (on OFEX) Surface Transforms had expected its technology to be utilised as early as the 2001 Formula 1 motor-racing season and the shares were suspended in August 2001 to allow publicity for a commercial materials development agreement to be co-ordinated. But, on return from suspension, the company merely announced that the other party to the agreement was an unnamed Formula 1 team. That agreement was subsequently discontinued, but in the interval the company had entered into a development agreement with BAE Systems. The directors believed that should this programme be ultimately successful, it would result in sales in excess of 2 million per annum over a minimum of a 10-year period.

Another kick in the teeth came when the organizers of Formula 1 decided to restrict the competing cars to one supplier of braking system - in December 2002 but the following month the company announced that the successful initial order to supply a brake plant to the aerospace brake specialist was likely to be followed by another, larger, order from the same source. "A great way to start the year" said the Chairman. And before the month end, an order for brake discs and pads from an Indy racer must have cheered him up even more. The truth was that there was little appetizing to the small investor in any aroma which had emanated from the direction of Formula 1 anyway. Now, aerospace and automotive markets writ large - that's different. And throw in rocket-motor systems and railways too if you must. But something tangible was required, and 2003 an initial 12-month contract from the US Air Force Research Laboratory, and an announcement of a Master Licences Agreement with Dunlop Aerospace helped provide it.

The ebb and flow of fortune had been faithfully reflected in the share price, and against the original placing price of 50p, Surface Transforms had first raised 200,000 more at 115p, and then 185,000 at 123.5p. But on the transfer to AIM, seeking 2.5 million, the board faced the highest hurdle yet. And that hurdle was clipped, as Surface Transforms garnered only 1.3 million (at 90p) more than 1 million below target. And in April last year 2.7 million in new monies was raised at 70p; the task eased no doubt by reports of tangible progress on the ground (or in the air if it comes to that), in production techniques, and in probing for additional uses for the technology. A few days later and one of these, in respect of body and vehicle armour, was confirmed by the granting of a development contract from the Ministry of Defence.

For the record, the May 2004 full-year outcome was a loss of only 250,000, including 125,000 of development expenditure. In June the company signed a two-year agreement with German braking specialist Metek, following an initial period of evaluation. Surface Transforms will provide the ceramic brake discs and pads, with Metek providing callipers and conventional pads - and calibrating, testing and qualifying the systems.

Yesterday, reporting on the launch which took place at the Automotive Aftermarket Show in November in Germany, the company told of 150 enquiries having been received, 20 of which were from the European specialist vehicle-tuning companies of the type required to fit the advanced upgrade kits. 10 initial orders were received. The price of the kits is material in relation to Surface Transform's size if reasonable volume can be attained, bringing in as it does about 3,500 per kit.

The same announcement contained disappointment of a sort, as Dunlop confirmed that the evaluation period in respect of the material exceeded the launch timetable for a new wide-bodied aircraft which it was hoped would utilise it. But Surface Transforms continues to work with the British aerospace company, and has signed an agreement (a revenue-generating agreement) with a US-based aircraft-brake supplier. The shares stand at 53.5p, which capitalizes the company at a shade under 7 million. There is 3 million in the bank.

Will the company make it? Make it by making money? Lots of money? I don't know, and God knows I am no fan of technology stocks. But for investors with the right combination of nerve and patience, the odds seem better than for many other companies that I have looked at. And those with shorter time horizons can hope for an event - in September 2003 for example the shares rose 30% in a single day when the US Air Force put in its appearance. So, a speculative buy.

Teather & Greenwood 14-02-05 BUY

Latest broker info on 14th Feb 2005.

Expecting into profit in 2006.

Any news from now on should see this one go from strength to strength. Now is the time to keeping adding more and more, and watch them gradually keep moving up as the time for profit appears on the horizon. One big contract will see this leap as well, so there is always the fun of the RNS :)

Surface Transforms PLC
23 February 2005


23 February 2005


Interim results for the six months ended 30 November 2004

Surface Transforms plc, manufacturers of carbon fibre reinforced ceramic (CFRC)
materials, announces its interim results for the six months ended 30 November
2004.


Financial and business highlights:

Turnover increased to 208,422 (30 November 2003: 175,481)

Increased investment in CFRC technology, management and technical
infrastructure of the Company contributed to increased operating losses of
301,147(30 November 2003: 161,742)

New development agreement signed with leading US-based aircraft brake
systems supplier

Strengthened management team

Strong cash position, 3,035,932 at 30 November 2004


Kevin D'Silva, Chairman of Surface Transforms, comments:

'The strategy to develop a Company with world class technical, product and
business development capabilities remains unchanged despite the short term
revenue loss associated with the wide-bodied aircraft brake contract.

'Revenues are expected to reduce in the second half of the financial year ending
May 2005, reflecting the loss of income from the Dunlop partnership. However,
the Company is developing new business revenue streams in the automotive and
aircraft brake markets, and is maintaining its increased investment in operating
and development activities.'


For enquiries, please contact:

Surface Transforms plc Gresham PR Ltd.
Julio Faria 01928 735 498 Neil Boom 020 7404 9000
Kevin D'Silva 07802 306956

Details of the Company's business and financial performance and its share price
can be found on
www.armshare.com
which is accessed from the Armshare icon on

www.surface-transforms.com



Chairman's Statement

The Company has made further progress in its principal markets since I last
reported financial results to shareholders. This includes starting development
work with a second global aircraft brake partner.

In January we announced the disappointing news that the materials we have been
jointly developing with Dunlop Aerospace for a new wide-bodied commercial
airliner would not be available in time for 2006. Despite this short-term
setback, the prospects in the automotive brakes market and in our other aircraft
brake partnership have enabled us to maintain the positive momentum developed in
2003/4.

Following the share placing that raised 2.7 million, the Company has increased
research and development expenditure relating to its proprietary new generation
carbon fibre ceramics, and appointed experienced executives and technical
personnel across the management and staff teams.

Financial Review

Turnover for the six-months ending 30 November, 2004 increased to 208,422 (
2003: 175,481), while operating losses on ordinary activities were higher at
301,147 (2003: 161,742).

The increased operating losses were largely due to a substantial increase in
development costs relating to the board's decision to accelerate investment in
carbon fibre reinforced ceramic technology, in the management team and in
technical personnel.

Losses after tax were higher at 180,277 (2003: 39,424) reflecting lower
research and development tax credits and grants of 58,562 (2003: 119,685).

The Company's cash and working capital position remains healthy demonstrating
the strong financial disciplines of the business despite continued investment in
the development of the CFRC technology. At 30 November 2004, the Company held
cash and deposits of 3,035,932 (May 2004: 2,707,839) representing in excess of
21 pence per share. Surface Transforms continues to have no bank borrowings.

The strong cash position will allow the board to continue its strategy of
developing and commercialising its technology across its chosen market
applications, notably automotive and aircraft brakes and aerospace components.

Management

As previously announced Dr Kevin Johnson, Operations Director, and Antoni
Sznerch, Business Development Director, have joined Julio Faria, Dr Geoff Gould
and Johannah Stretton as executive officers. To meet the challenging targets in
aircraft and automotive brake business development, together with goals in
operations and technology, non-executive director Peter Holland has agreed to
co-ordinate management activities for a six-month period to June 2005. Peter has
a 25-year record of successful management in an industrial chemical company,
which he sold in 2002.

Science and Technology Group

The Company has re-organised internally, to form a new Science and Technology
Group, headed by Julio Faria. This group will focus on maintaining the Company's
lead in CFRC technology and continues to draw on the scientific expertise of n
on-executive director, Professor David Clark. In September 2004, the board
initiated investment in a next generation CFRC siliconisation plant to replace
the Company's existing process technology. The new plant is expected to be
commissioned at the end of 2005 and it should substantially improve the
operating characteristics of the CFRC technology.

Operating Activities

Automotive Brake Systems

Surface Transforms has invested heavily in the past six months in the automotive
brake market, specifically the high-performance road car segment. The
co-operation agreement with METEK was signed in May 2004 and orders were taken
for the 'System ST' brake & pad, which was successfully launched in November
2004 at a major automotive aftermarket trade show in Essen.

A number of European car manufacturers who produce high-performance, low volume
cars, have shown interest in evaluating 'System ST'. Shareholders will be
updated once material progress has been made.

The High Performance Road Car market offers significant commercial opportunities
for carbon ceramic brakes and the Company's strategy for European market entry
has recently been revised. It involves using System ST products for:

entry into the automotive aftermarket for brake system upgrades

entry into the automotive Original Equipment Manufacture (OEM) market for
high volume, peformance car models

entry into the automotive OEM market for low volume, performance car
models

The high volume OEM market is substantial and the time for material evaluation
and qualification for a new brake is necessarily long. The Company is
cooperating with METEK in this field.

The low volume OEM market is attractive as there are a number of car producers
considering carbon ceramic brakes to improve the braking power, performance and
attraction of their cars.

The performance car aftermarket

The automotive aftermarket for brake discs is large and there is increasing
interest in carbon ceramic brakes. Surface Transforms is seeking opportunities
to supply the performance car aftermarket within Europe and will inform
shareholders of developments at the appropriate time.

Aircraft Brakes

The Company has separate development programmes for carbon ceramic aircraft
brake discs with two global suppliers of aircraft braking systems. Dunlop
Aerospace is the European supplier and development work commenced some three
years ago, accelerating when a Master Licence agreement was signed in November
2003. As already stated, the Company's CFRC brake materials will not be included
on a new, wide-bodied European aircraft being certified for flight in 2006. The
performance evaluation period required to fully evaluate, qualify and
manufacture brake discs for this aircraft model exceeded the aircraft's launch
timetable.

This will reduce expected 2005 revenues by approximately 150,000 and will
cancel projected licence income scheduled to start in 2008. The Company
continues to work with Dunlop under the Master Licence Agreement.

In January 2005, Surface Transforms signed a materials development programme
with a leading US-based aircraft brake systems supplier. The programme is at an
early stage and the risks that relate to a high-performance technology project
are always an important consideration. Nevertheless, the goals of both parties
are to qualify carbon ceramic brake discs for use on selected, new and existing
aircraft models.

Aerospace Components and Anti Ballistic Materials

Roxel UK and Roxel France are the principal customers for Surface Transforms'
non-friction materials for use in rocket motors. Co-operation between the two
companies continues to expand.

The 12-month development contract with the US Airforce Research Laboratory
(AFRL) was completed during the period under review. The feedback from AFRL is
that material testing has been very successful. The Company has submitted
proposals for a substantial expansion to the development programme but award is
subject to the AFRL's budget constraints.

The contract with the UK Ministry of Defence to develop and evaluate anti
ballistic materials continues to progress and results should be available in the
next six months.

Outlook

The strategy to develop a company with world class technical, product and
business development capabilities remains unchanged despite the short term
revenue loss associated with the wide-bodied aircraft brake contract.

Revenues are expected to reduce in the second half of the financial year ending
May 2005, reflecting the loss of income from the Dunlop partnership. However,
the Company is developing new business revenue streams in the automotive and
aircraft brake markets, and is maintaining its increased investment in operating
and development activities.

The new business contract awarded to the Company during the period
under review reflects the hard work and dedication of all employees. I would
like to express my thanks to them and again extend a warm welcome to those new
colleagues who have joined us recently.

Kevin D'Silva
Chairman
22 February 2005