New product development agreement with OEM

Tan Delta (AIM: TAND), a leading provider of intelligent monitoring and maintenance systems for commercial and industrial equipment, is pleased to announce that it has entered into a non-exclusive new product development agreement with a global engine OEM (the "Agreement").

The Agreement is for the development and commercialisation of a new real time sensor (based on the Company's core technology) to monitor the condition and degradation of aqueous fluids such as coolants, cutting fluids and water based hydraulic fluids. The Agreement is worth approximately £200k which is expected to be fully recognised in the current financial year ending 31 December 2024. The Company plans to have the product completed and ready for live trials by the end of Q4 2024. Post this development phase, potential revenue in the subsequent five years could exceed £2.0m.

Chris Greenwood, Tan Delta Systems, CEO said:

"I'm very excited about this development agreement as it aligns with our strategic vision of expanding our intelligent monitoring capabilities whilst utilising our existing core technology. In addition to opening new markets for water-based fluids, this new sensor will give us the unique ability to monitor all of the key fluids in an engine (fuel, oil and coolant) in real time giving unparalleled insight into the operating condition of the underlying assets."