Have any of you guys seen this?
Torotrak PLC
("Torotrak" or "the Company")
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."
