Key Points:

Loss before tax of £ 3.061m in line with expectations
Development costs and administration expenses increase to £3.048 (£2.143m)
Company remains focused on the commercialisation of its technology
Significant progress achieved in pursuit of strategy to broaden product portfolio and develop wider market potential.

Products:

DCA ("Dual Clutch Antonov") initial development phase completed, with MG Rover 75 prototype construction beginning in early 2005. Initial production expected to commence in late 2007
Production licence signed with tier 1 partner, Powertrain Limited, the UK's largest independent motor engine and transmission manufacturer
Strategic Heads of Agreement signed with Powertrain Limited to develop the six-speed AAD technology. Series production planned to commence in early 2007
A fifth generation six-speed AAD prototype gearbox installed in an MG Rover Streetwise car and demonstrated at the Paris Motor Show in September 2004
Heads of Agreement signed with Rotrex A/S to commercialise the Group's new two- and three-speed fully-mechanical automatic gearboxes for a high performance vehicle application. Initial series production planned to commence in 2005
Management:

Management team strengthened with the appointment of John Moore as CEO
The Board is confident of the Company's rapidly strengthening commercial position with the move from client demonstrations to production intent.

Roumen Antonov, Chairman, said:
"Significant progress has been made by the Company in 2004. We are now able to offer the motor industry a full range of automatic gearboxes. Our six-speed AAD gearbox is due to go into series production with Powertrain Limited in 2007 and the initial development phase of the DCA has been completed. While automotive transmissions remain our core focus, the deepening of our relationship with Rotrex A/S demonstrates the Company's ability to adapt our technology to new markets and increase our potential customer base. We expect to make further announcements with regards to the commercialisation of our technology in due course".