Fundraising & Appointment

Traction Technology PLC 29 November 2007 Traction Technology Plc (AIM: TRAC) Appointment of Managing Director to Traction Technology (UK) Limited and Fundraising Traction Technology Plc ('Traction' or the 'Company'), a designer and deliverer of environmentally friendly, low emission series diesel electric hybrid engine systems, announces the appointment of Andrew Walmsley as Managing Director of its sole operating subsidiary, Traction Technology (UK) Limited, with effect from 3rd December 2007 and a fundraising of £524,220 before expenses. Managing Director appointment Mr Walmsley, aged 55, has over 15 years experience in the global automotive industry. He has a strong operations and commercial background with a successful track record of delivering results mainly in the sports car and engineering consultancy sectors. It is this experience that the Company is looking to Andrew to bring to bear alongside the existing Directors and senior employees to exploit the true potential of Traction and its hybrid engine systems as the Company enters the commercialisation phase of its development. Previously Mr Walmsley has been Group Commercial Director of Lola Cars International Limited and Managing Director of Lola Automotive. From 1999 to 2004 Mr Walmsley worked as both Project Director and then Managing Director of McLaren Cars Limited where he was responsible for all aspects of McLaren Cars' activities, in particular the Mercedes Benz SLR McLaren sports car project. Prior to joining McLaren Cars Limited Mr Walmsley was at Cosworth Engineering and Group Lotus. Until recently Mr Walmsley was a board member and Vice Chairman of the Automobile Division of the Institution of Mechanical Engineers. Fundraising The Company is pleased to announce that it has raised a total of £524,220 before expenses by means of a placing of 2,184,249 new ordinary shares of 3p each (' Shares') at a price of 24p per share. The funds raised through the placing will be used to support the fulfillment of the Optare order announced on 19 November 2007 and further orders anticipated in the near future. Andrew Walmsley has participated in the placing and application will be made for the 2,184,249 new Ordinary Shares issued today, which will rank pari passu with the existing Ordinary Shares, to be admitted to trading on AIM. Admission is expected to occur on 3 December 2007. Nick Brayshaw, Chairman of Traction, commented: 'We are very excited to be welcoming Andrew to the Company. With his broad experience in the automotive industry, especially with blue chip names such as McLaren, Cosworth and Lotus, Andrew will play a key role in advancing the manufacturing and distribution of Traction's hybrid engine systems. Since we now have a direct route into the market through our new agreement with Optare announced recently, and further funds raised in this latest placing to support our current working capital needs, Andrew's role will be crucial to the Company's future success.' For further information please contact: Traction Technology Plc Nick Brayshaw, Chairman +44 (0) 1403 791 392 Bob Dover +44 (0) 1403 791 392 +44 (0) 7969 887 889 Ambrian Partners Limited Richard Brown/ Richard Greenfield +44 (0) 20 7776 6400 Parkgreen Communications Limited +44 (0) 20 7479 7933 Paul McManus +44 (0) 7980 541 893 paul.mcmanus@parkgreenmedia.com This information is provided by RNS The company news service from the London Stock Exchange