Concentric oil and “smart” water pumps for Euro truck engines

Concentric AB has signed a multi-year contract with a global truck manufacturer
to supply oil and variable flow water pumps for its new 11 litre engine which is
designed to meet the requirements of Euro 6/EPA13 legislation.
Annual revenues will be in the region of MSEK 76 , based on mature volumes of
30,000 engines per year across Europe and the US. This contract follows on from
an earlier order announced in October 2012 from the same customer for water
pumps on its new 13 litre engine, taking the total annual revenues anticipated
for both contracts to approximately MSEK 148, based on total mature volumes of
90,000 engines per year.

Under the earlier contract, Concentric began delivering water pump modules to
plants in Europe and the USA in the final quarter of 2012 so as to enable full
compliance with EPA13, which became effective on 1st January, 2013. Volumes of
all three pumps will ramp up throughout 2013, in time for 1st January 2014 when
Euro6 legislation comes into force, with mature volumes on both contracts
anticipated by late 2014 / early 2015.

Concentric has undertaken a significant investment programme to ensure that its
oil and water pumps will be delivered ready for the introduction of the second,
smaller engine at the start of 2014. Both water and oil pumps have been designed
and developed by Concentric in close collaboration with the customer, with
extensive use of Concentric's expertise in fluid dynamics simulation to ensure
optimised performance is achieved.

The water pump is a two-speed pump, controlled by an advanced magnetic clutch
from Licos Trucktec, which was acquired by Concentric in June 2013. The
resulting assembly not only gives the end-user a 1% improvement in fuel economy,
which is a major advance for truck operators, but also demonstrates the
synergies resulting from the marriage of Licos and Concentric technologies.

As with the 13 litre engine, thermostats are integrated into the Concentric
water pump module, along with integrated water filtration and a single-piece
injection-moulded impeller. The oil pump is an external gear pump construction,
providing an excellent balance of high efficiency and durability.

David Woolley, President and CEO of Concentric AB commented: “This significant
contract is the product of many years of innovation and the dedication of the
Concentric and customer teams working closely together.   The project has given
us the opportunity to capitalize on the strengths of both our UK and Indian
manufacturing facilities to provide a world class manufactured product at
optimized cost. We believe that Concentric's focus on technology and innovation
has a vital role to play in achieving sustainability and this is a persuasive
example of that philosophy. The contract also supports our declared business
targets of out-performing the market and growing our market share.”

For further information, please contact David Bessant, CFO. Tel +44 121 445
6545