Traction Drive Components Supply Chain Project

26 February 2014

Torotrak plc

("Torotrak" or the "Group")

Traction Drive Components Supply Chain Project

Technology Strategy Board Funding for Torotrak-led Project

Torotrak (LSE: TRK) announces the award of a Technology Strategy Board grant, under its competition 'Building an automotive supply chain for the future - IDP10'. The award relates to the development of an optimised supply chain for manufacturing discs and rollers, key components of Torotrak's leading variable drive transmission, engine boosting and kinetic energy recovery systems for vehicles. The project, 'The Supply Chain Optimisation of Traction drive Core Component Technology' ("S-CONTACCT"), has a total value of £3.8 million and will be significantly funded by the award of £2.4 million from the Technology Strategy Board. The value of work undertaken by Torotrak directly will be approximately £2.6 million.

Torotrak will lead the three year project, commencing on 1 April 2014, which will form an innovative supply chain and which engages two centres from the High Value Manufacturing Catapult, including The Advanced Forming Research Centre (AFRC). The other consortium members are Tata Steel (TATA) and South Wales Forgemasters (SWF). A project Steering Committee will include, a global automotive Tier 1 and Productiv (lead partner of the Government and Industry funded Proving Factory), as well as the consortium members and support by a UK OEM.

The anticipated outcome of S-CONTACCT will be a supply chain for the components with steel optimised for the production process, specifically for innovative cold rotary forging and enhanced grain flow hot forging processes, an end-to-end manufacturing process, new process models and tools to optimise the supply chain and a detailed factory model including equipment specifications and supply chain for manufacturing the components.

Jeremy Deering, Torotrak's Chief Executive said: "S-CONTACCT enables the very latest advanced manufacturing techniques to be applied to the volume supply of Torotrak's core technology components - the discs and rollers that are at the heart of our products that substantially reduce carbon emissions in vehicles. This is significant in terms of support for our and our licensees' commercialisation plans by building a cost effective supply chain.

"This very welcome support from the Technology Strategy Board is an example of the really innovative ways in which the UK is currently supporting the resurgence of British engineering and, most importantly, ensuring the supply chain capability to deliver it into widespread world markets."

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

About Torotrak

Torotrak is a leading developer and supplier of variable drive transmission, engine boosting and kinetic energy recovery systems for vehicles. Our portfolio of technology solutions substantially improves fuel economy and reduces CO2 emissions in vehicles through harnessing the power of supercharging to enable engine downsizing, capturing and recycling energy that would otherwise be lost and managing the engine at the optimum point. Torotrak completed the acquisition of Flybrid in January 2014.

Technology Strategy Board and Integrated Delivery Programme

The Technology Strategy Board is the UK's innovation agency. Its goal is to accelerate economic growth by stimulating and supporting business-led innovation. Sponsored by the Department for Business, Innovation and Skills (BIS), the Technology Strategy Board brings together business, research and the public sector, supporting and accelerating the development of innovative products and services to meet market needs, tackle major societal challenges and help build the future economy. For more information please visit www.innovateuk.org.

The "building an automotive supply chain for the future" competition is the tenth competition run under the Technology Strategy Board's Integrated Delivery Programme (IDP), part of the Low Carbon Vehicles Innovation Platform (LCVIP) set up in 2007 to promote research, design, development and demonstration of low carbon vehicles in the UK. The programme aims to integrate the low carbon vehicle innovation chain, from the science base through collaborative R&D to fleet-level demonstration.

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