Agreement with Univance Corporation

21 May 2012

("Torotrak" or the "Company")

Torotrak plc (LSE: TRK) is pleased to announce the signing of a new co-operation and licence agreement ("the Agreement") with Univance Corporation (TSE: 7254.T), a leading developer and manufacturer of passenger and industrial vehicle transmission units and other automotive parts, headquartered in Japan.

The new, non-exclusive license agreement allows Univance Corporation ("Univance") to develop, manufacture and supply core variator components (discs and rollers) and variator assemblies to Torotrak licensees. Univance has committed substantial investment to support the development and initial industrialisation of core component manufacture. Torotrak will contribute its engineering support and intellectual property and knowhow; and in return, it will earn an effective revenue share on all sales of Torotrak related parts or sub assemblies. The agreement also supports a joint marketing programme and provides for the supply of components and systems branded under the Torotrak name.

The arrangement supports the industrialisation of Torotrak technology in both the commercial vehicle (on and off highway) and passenger car markets. The Agreement provides the Company and its licensees with a reliable production source of cost effective and quality validated parts and sub assemblies.

Univance is an excellent partner for Torotrak, with a clearly defined strategy to create value through a focus on innovative technology. It has a reputation for excellence in terms of quality, with a focus on commercial vehicles and passenger cars that is closely aligned with Torotrak's.

Prior to this new agreement, Torotrak has been working with Univance on a shared cost basis over the last two years to develop production processes for the manufacture of discs and rollers. Univance has developed its processes over several iterations and Torotrak has been testing the components produced on its dedicated rigs at Leyland. Univance has reached full conformity within 12 months.

Dick Elsy, Torotrak CEO, commented: "Engaging a component manufacturer of Univance's calibre and market reach is a significant step for Torotrak in our strategy to bring our technology to market. Ensuring a high quality and reliable production source for our key parts, discs and rollers, is essential to building confidence in our technology."

Michiyasu Muramatsu, Univance President said: "We are very pleased to have entered this joint agreement. Torotrak is a dedicated and ambitious company to work with, and our programme is already yielding promising results. This is the first step towards providing high efficiency drive technologies together in the future."

For more information, please visit www.torotrak.com or contact:

Notes to Editors

About Torotrak plc

Torotrak is the global innovator in gearless traction drive technology to reduce CO2 emissions in vehicles. Our technology substantially improves fuel economy in vehicles, harnesses the power of supercharging to reduce engine size and enables waste energy to be recovered efficiently through flywheels.

About Univance Corporation

Univance is a vertically integrated company with full R&D through to mass production capability. It manufactures products ranging from drive, braking and control units and other parts that support automotive operation, to machine tooling and assembly. Univance targets innovative technology and has four primary businesses: manual transmissions; automotive parts; four wheel drive units; and industrial and agricultural transmissions. It is headquartered in Kosai City, Japan, with overseas presence in USA, China, Indonesia and Thailand. It is listed on the Tokyo Stock Exchange.

Its major customers are: Nissan Motor Co., Ltd., Suzuki Motor Corporation, JATCO Ltd, CNH America LLC (U.S.A.), Mazda Motor Corporation, UD Trucks Corporation, Isuzu Motors Limited, Kayaba Industry Co., Ltd., Buhler Versatile Inc. (Canada), Aichi Machine Industry Co.,Ltd., Fuji Heavy Industries Ltd., Honda Motor Co., Ltd., AISHIN AW CO., LTD., Yutaka Giken Co., Ltd., Exedy Corporation, Nissan Shatai Co., Ltd., DAIHATSU MOTOR CO., LTD., Hitachi Automotive Systems, Ltd., Mitsubishi Motors Corporation.

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