Torotrak plc, Annual General Meeting, Jul 28, 2009

Torotrak plc reported earnings results for the full year ended March 31, 2009. For the year, revenues increased by 25% to GBP 4.6 million from GBP 3.7 million in 2008, with a growth in operating cash flow to GBP 1.0 million compared to GBP 0.5 million in 2008 and with a reduction in operating loss to GBP 2.4 million compared to GBP 2.8 million in 2008. The company expects to continue to deliver both revenue growth and bottom-line improvement in the financial year ending March 31, 2010.

Torotrak plc has entered into a license and exclusivity agreement with Allison Transmission, Inc. Under the terms of the agreement, Allison has purchased initial license rights valued at approximately GBP 8.44 million of which approximately GBP 4.69 million has already been paid. The initial license payment has provided Allison with non-exclusive license rights to use Torotrak's full-toroidal traction drive technology in the medium-sized commercial vehicle market, together with options to secure manufacturing and sales exclusivity in this sector as well as the right to secure further licenses for applications in large commercial vehicles at a later date. Allison will pay the remaining GBP 3.75 million in 2010.