Transense Technologies PLC
6 June 2000
Transense signs world-wide licensing
agreement with Sawtek
Transense Technologies has signed an exclusive world-wide licensing agreement
with Sawtek Inc, one of the fastest growing manufacturers of Surface Acoustic
Wave (SAW) devices in the world, listed on NASDAQ with a market capitalisation
yesterday of $3.1 billion. Under the terms of the agreement Microsensor
Systems Inc (MSI), a wholly owned subsidiary of Sawtek, has the right to
mass-produce Transense's SAW devices for sale to the application licensees of
Transense's patented technology. Transense will receive a royalty on all
sales of the licenced devices.
In exchange for the exclusive licence and in addition to the royalty payments
that Transense will receive, Sawtek will make the investment in tooling and
production machinery that is necessary to produce the Transense SAW devices.
Sawtek's production of SAW devices has grown more than four-fold over the past
twelve months and currently the Company is producing at the rate of several
million devices a month.
Transense's SAW sensors are used to measure torque, strain and pressure in
applications such as electric power steering, driveline and tyre pressure
monitoring. These devices can measure minute changes in many automotive
applications, and require no power source as they can be interrogated through
wireless non-contact technologies. With vehicle sales running at over 50
million a year and the potential of 25 SAWs or more per vehicle, the market
for Transense's SAW sensors could be on the same scale as that seen in mobile
phones over the past five years.
Jim Perry, Chief Executive of Transense, said last night, 'Transense's
strategy is to licence its technology and not manufacture anything apart from
prototypes. The company's strength rests in its patents, licencees and the
enthusiasm and ability of its engineering team to make Transense a world
leader in automotive sensors.
'We have identified Sawtek as the most suitable partner to mass manufacture
the SAW device, which is the core element of our sensor technology. Sawtek
was chosen because of its outstanding growth record over the past five years,
and its on-going strategy to seek out other large potential markets which can
offer dynamic growth similar to that seen in mobile phones'.
'A key element of our strategy is to licence manufacturing partners such as
Sawtek for each element of our product range. This agreement represents
another significant step towards achieving our goals'.
Bill Drafts, Vice President and General Manager of MSI, stated: 'A strategic
focus for MSI is to leverage acoustic wave technology into high volume markets
not presently served by our parent company Sawtek. We feel that the
automotive market meets our requirements and we are very excited to be
selected as the exclusive manufacturer of SAW tire pressure and torque sensors
utilising Transense's patented technology'.
For further information, please contact:
Jim Perry
Chief Executive
Transense Technologies plc 01869 238 030
John Coyle 020 7713 0900
Clerkenwell Communications 07770 687 370
Graeme Bayley
Manager Growth Companies Team
HSBC 020 7336 9000
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