Board and Management Changes

31 August 2012

("Torotrak" or the "Company")

Board and Management Changes

Torotrak (LSE: TRK) announces that Dick Elsy is today stepping down as Chief Executive and will leave the board of Torotrak and the Company on 28 September 2012. Dick is succeeded by Jeremy Deering, Torotrak's Finance and Commercial Director, who has been appointed as CEO. Jeremy has been with Torotrak since 2006 and has been instrumental in the strategic and commercial development of the Company. He has developed strong personal relationships with Torotrak's key clients and licensees and is leading Torotrak's current business development activities. He has been the driving force behind Torotrak's key licence and commercial agreements.

Dick is leaving to take up a new role as the first Chief Executive of the UK's High Value Manufacturing Catapult, the Government's flagship programme designed to transform the UK's capability for innovation and to help drive future economic growth.

Torotrak also announces the appointment of a new member of the senior management team who brings additional expertise in project delivery and growth management that supports the stated objectives of this phase of Torotrak's development. Garry Wilson joins Torotrak as Group Director - Engineering and Programme Delivery.

Prior to joining Torotrak in June 2012, Garry was the Director responsible for implementing significant global growth in engineering capability for Delphi Diesel Systems Aftermarket, part of the top-twenty global vehicle technology supplier Delphi Automotive. He has also held senior positions at Land Rover and at major engineering consultancies, delivering high-value powertrain programmes. At Roush Technologies, Garry led European engineering activities across a range of automotive and non-automotive sectors including cars, commercial vehicles, agriculture, and defence, increasing profitable engineering services income fourfold.

A search process has commenced for the role of Finance Director and shareholders will be updated on this in due course.

Commenting on the changes, John Weston, Chairman said: "Torotrak's Board would like to thank Dick for leading the substantial changes in our Company which have ensured that we now have a strong business with an outstanding leadership team. We see his new role as making a vital contribution to the development of world-class technology businesses in the UK and wish him the very best of luck in this prestigious new position.

"We are delighted that Jeremy Deering has agreed to bring his considerable energy and vision to the position of CEO. The Board has asked Jeremy to continue driving forward the delivery strategy that he has played a key part in developing, and to accelerate the development of our long-term growth strategy. I'd also like to welcome Garry to the senior management team, an appointment that adds great depth of experience in areas perfectly aligned with our focus on delivery."

Dick Elsy said: "It's not an easy decision to leave Torotrak at such an exciting time when our plans are really starting to deliver, but I've been asked to take a leading role in the Government's aims to rebalance the UK economy towards high value manufacturing and it's something I want to do on a personal level. I am leaving Torotrak in good shape, in good hands and with very clear direction. Jeremy and I have worked well together for many years and I know that he is ideally placed to lead the next stage of Torotrak's route to full commercial roll-out".

Jeremy Deering added: "I have enjoyed working with Dick on both a personal and a professional level. Torotrak has been fortunate to have had his energy and expertise for the last ten challenging years. He will make a superb advocate for British technology in his new role, which allows him to make a substantial contribution to a cause about which he is genuinely passionate.

"I am excited by my appointment as Chief Executive Officer. Torotrak today has significant market opportunities and has restructured itself to exploit those effectively. We have a dedicated and innovative team in place at Torotrak, strengthened further by today's appointment of Garry Wilson as Group Director - Engineering and Programme Delivery. There is still much to be done to capitalise on our opportunities, focusing on the key applications of our technology and on markets where our technology has the greatest impact and value."

For more information, please visit www.torotrak.comor contact:

Notes to Editors

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.

-ends-