New Licence Agreement and Engineering Development Agreement with a Major
European Truck and Bus Manufacturer
Following the statement contained in Torotrak's Half-Yearly Results, published
on 27th November 2007, that the Company had entered into a Memorandum of
Understanding with a major European truck and bus manufacturer, Torotrak plc is
pleased to announce that it has now entered into a Licence Agreement and an
Engineering Development Agreement relating to the use of Torotrak's
full-toroidal traction drive technology in this client's commercial vehicle
range.
The total value of the Licence Fee and subsequent payments relating to the
Engineering Development Agreement is in excess of £7.0m, with more than half of
this sum being payable during this financial year. Under the terms of the
Licence Agreement the client has secured the right to use Torotrak's technology
to develop and manufacture transmissions for worldwide sales in their vehicle
range together with a period of exclusivity to develop Torotrak's technology for
use in the field of heavy commercial vehicles.
In addition to the Licence Agreement, the parties have also entered into an
Engineering Development Agreement whereby Torotrak will undertake a substantial
prototype engineering programme for the client which will span a number of
years.
Torotrak and the client have agreed that, for reasons of commercial sensitivity
and in order to protect the customer's competitive position, the new licensee's
identity will remain undisclosed.
Commenting on the agreements, Dick Elsy - CEO, Torotrak plc, said, "These
agreements with this prestigious customer highlight the capability and economic
benefit of Torotrak's technology in the commercial vehicle market. We are
delighted to have secured this new client - recognised as a market leader and
for their world-class engineering skills in their field - as a Torotrak
licensee.
With these new agreements, we have taken a further, major step in the
repositioning of Torotrak as a provider of toroidal transmission technology for
a wide range of product and market applications. The successful implementation
of our diversification strategy during the past three years has moved Torotrak a
long way from its single focus and dependency on the automotive market, and the
Company is substantially stronger as a direct result."
For further information contact:
Torotrak: Telephone 01772 900938
Dick Elsy, Chief Executive
Jeremy Deering, Finance Director
Tavistock Communications: Telephone 020 7920 3150
Simon Hudson
Lulu Bridges
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