ADVANCED BRAKING TECHNOLOGY LTD — Capital/Financing Update 2008

May 14, 2008

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15 May 2008

AUSTRALIAN SECURITIES EXCHANGE

Electronic Lodgment

Dear Sir or Madam,

RENOUNCEABLE RIGHTS ISSUE

SUMMARY OF THE OFFER

Advanced Braking Technology Ltd ( Company ) is pleased to announce a pro rata renounceable rights issue ( Rights Issue ) to raise approximately $4.6 million before costs. Each eligible shareholder is being offered 1 new fully paid ordinary share ( New Shares ) for every 2 fully paid ordinary shares held as at the Record Date. The New Shares will be offered at 2 cents per New Share. Rights trading is expected to commence on 23 May and conclude on 13 June 2008.

Patersons Securities Limited has been appointed as Lead Manager to the Rights Issue.

Offers of New Shares will be made pursuant to the Prospectus which is presently being finalised.

The Company will apply to have the New Shares quoted on ASX and an Appendix 3B in relation to the Rights Issue will be issued in due course.

The funds raised by the Rights Issue will be used to establish a network of service centres in the Eastern States, Kalgoorlie and the Pilbara region in Western Australia as well as developing a direct selling model and service centres in South Africa. These centres will incorporate a warehouse and service outlet, providing fitting capability and sales support to the mining industry in close proximity to their operations. The funds raised will also be used to supplement the Company’s working capital requirements. The rate at which service stations will be opened will be governed by the amount raised under the Rights Issue.

The timetable for the Rights Issue will be announced once the Prospectus is finalised However the anticipated timetable for the Rights Issue is as follows:

"Ex" date (Rights trading begins)	23 May 2008
Record Date (to determine shareholders entitled to participate)	29 May 2008
Despatch of Prospectus and Entitlement and Acceptance Forms	3 June 2008
Rights trading ends	13 June 2008
Closing Date for Rights Issue	20 June 2008
Despatch of transaction confirmation statements	30 June 2008

Advanced Braking is at an exciting phase in its growth and the proposed raising has been structured to provide an opportunity for participation by all eligible shareholders. The Directors encourage shareholders to support the rights issue.

An Investor Presentation is attached. Any questions should be directed to the undersigned.

Yours faithfully,

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Ross Blakey Company Secretary

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Investor Presentation May 2008

Disclaimer

• This Document (and the information contained herein) is confidential to Advanced Braking Technology Limited (“ABV” or “the Company”).

• This Document is not intended for and should not be distributed to any other person than as permitted herein. By receipt of the Document, the Recipient agrees that it will not transmit, reproduce or make available the Document (or any Information contained herein) to anyone other than its professional advisers without the prior written consent of ABV. Upon deciding that it does not wish to proceed with a transaction, or at the request of ABV, the Recipient will return, as soon as practicable, this Document together with any reproductions of it and any other Information which the Recipient may have received from the Parties.

• This Document is being provided exclusively to investors that qualify pursuant to Section 708 of the Corporations Act for the sole purpose of providing background information to enable the recipient to review the potential for the provision of equity funding to ABV. It is not intended as an offer, invitation, solicitation or recommendation with respect to any potential transaction.

• Patersons Securities Limited (“Patersons”) as Lead Manager has relied on information provided by ABV and have not undertaken any due diligence, verification or audit of the information provided.

Patersons make no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the information. Patersons and their respective directors, employees, agents, advisers and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained or derived from, or for any omissions from this Document.

• Patersons their respective servants or agents, make no recommendation as to whether you should participate in either the Offer nor do they make any recommendation or warranty to you concerning the Offer or accuracy, reliability or completeness of the information provided or the performance of the Company.

Potential investors must make their own independent assessment and investigation of the opportunity and should not rely on any statement or the adequacy or accuracy of the information provided. Securities of small cap companies typically involve a high degree of risk and as such, any investment in ABV must be considered as speculative. The information provided does not purport to cover all relevant information about any potential investment in ABV. Accordingly potential investors are advised to seek appropriate independent advice, if necessary, to determine the suitability of this investment.

• The Document contains reference to certain intentions, expectations and plans of ABV. Those intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. The performance and operations of ABV may be influenced by a number of factors, many of which are outside the control of ABV. No representation or warranty, express or implied, is made by Patersons or ABV or any of their respective directors, employees, agents, advisers and consultants that any intentions, expectations or plans will be achieved either totally or partially or within a prescribed timeframe or that any particular rate of return will be achieved.

• The Information disclosed relates to the proposed business of ABV at the date of this Document. Material information may have changed since the date the Document was compiled. No responsibility is accepted to advise any person of any change.

• Neither the provision of this document nor any information contained in this document or subsequently communicated to any person in connection with this document is, or should be taken as, constituting the giving of investment advice to any person.

• Patersons advise that they and persons associated with them may have an interest in the securities of ABV and that they may earn brokerage, commissions, fees and other benefits and advantages, whether pecuniary or not and whether direct or indirect, in connection with the making of a recommendation or a dealing by a client in these securities, and which may reasonably be expected to be capable of having an influence in the making of any recommendation, and that some or all of our respective Representatives may be remunerated wholly or partly by way of commission. Patersons respective directors and staff may hold securities in ABV and may participate in the offer on their own accounts. Patersons may also participate as principal in the ABV offering.

• Patersons will receive fees for their role in assisting ABV in raising the equity capital component of the funding required pursue company objectives.

• • By accepting this document you acknowledge and agree to be bound by each of the foregoing statements.

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About Advanced Braking Technology

• Publically Listed Australian company first quoted in 2002 (ASX Code: “ABV”)

• Commercialising patented new brake technology (SIBS)

• Product offers superior performance and safety benefits

• Engineering, design and testing in Perth headquarters.

• • Wholly owned manufacturing facility in Laemchabang, Thailand.

• Focus on brakes for mining, heavy machinery, off-road vehicles where safety and reliability is paramount

• Significant growth opportunities and product extensions

• Company now looking to raise circa $4.6m to drive business growth

Slide 3

Proposed Capital Raising

• Details of the Offer

• 1 for 2 Renounceable Rights Issue at 2.0c to raise up to $4.61 m

• – Patersons Securities Limited – Lead Manager to the issue

• • Capital Structure

		Number	Amount Raised	%
	Existing Shares	460,888,296	-	66.6%
	1:2 Rights Issue	230,444,148	$4,608,883	33.3%
	Totals	691,332,444	$4,608,883	100.0%
Note: the Company has 41,750,000 unquoted options on issue
of Funds – (based on full subscription)
	Indicative use of funds			Allocated Funds
	Development of Direct Sales Network in South Africa			$1,103,000
	Development of Service Network in Eastern States of Australia			$1,220,000
	Development of Service Network in Western Australia			$610,089
	Working capital			$1,333,794
	Anticipated expenses of the Rights Issue			$342,000
	Gross funds to be raised			$4,608,883

• Use of Funds – (based on full subscription)

• Market Capitalisation (fully diluted @ 3.9c) is $18.0 million

Slide 4

Share Price Chart

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Vol ('000) Share Price Performance and Volume Price ($)
6,000 0.06
5,000
0.05
4,000
0.04
3,000
0.03
2,000
2c Issue Price
0.02
1,000
0 0.01
12 months Slide 5
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COMPANY STRUCTURE

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ABTL
Head Office Perth
3 Directors
Non Executive
Thai Facility
ABPL
Assembly
Trading Company
20 Heads
Administration
Sales Engineering/Fitters
& Warehouse
6 Heads 9 Heads
5 Heads
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Directors / Management

• Chairman – Mr David Humann

• Executive Directors

– Ken Johnsen – MD/CEO – Ross Blakey – CFO

• Non-Executive Directors

– Professor Malcolm Richmond – Mr Chris Coudounaris

Slide 7

Company Activities

• Manufacture and sale of SIBS

• Sealed Integrated Braking System

• a unique high value braking product

• Internationally patented product with cover in key and

• future markets

• Active supplier to mining and mining service companies.

• Developer of ‘ Braking Solutions ’ for specific customer needs and applications.

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Our Customers

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Slide 9

Production Activities

• Assembly Operations in Thailand

• Certified to ISO 9001

• Network of qualified vendors/suppliers in place

• Current Production Capacity – 150 to 200 sets per month

• • Ultimate Production Capacity – 250 to 300 sets per month

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Overview of Technology

Patented Sealed Integrated Braking System SINGLE ROTOR enclosed in an oil filled housing Rear brake fitted with fail-safe feature.

Slide 11

SIBS Key Features

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1. Enclosed housings

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1. Specially formulated SIBS fluid – approx 1/3 full 3. Grooved pads 4. Brake vented to atmosphere 5. Spring applied hydraulic release park brake – fail safe

Slide 12

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SIBS

2 x Grooved Brake Pads per side

Conventional Dry Brake Pad

Wear rates of SIBS brake pads are substantially lower than conventional pads over the same operating conditions

Slide 13

EMMA Fail Safe Feature

• Increasingly stipulated as a requirement on mine sites

• Brings vehicle to controlled stop in case of emergency.

• Can be activated by driver or engages automatically in event of vehicle malfunction eg hydraulic/electrical circuit failure.

• Can be configured with safety interlocks: eg vehicle doors not closed properly

• • Extra safeguard in frustrating and distractive working conditions

Slide 14

End User - Return on Investment

• In harsh operating conditions the capital cost of SIBS can usually be justified on reduced brake maintenance costs

• Payback based on parts and labour savings and reduced vehicle downtime

• Payback periods of 3 to 6 months have been seen by some customers

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Stringently tested

SIBS[®] has a proven record in the most rugged operating environments and is certified for on-road use. : Independently passed

• ECE R13, recently passed by TÜV, Germany.

• Australian Design Rule (ADR) testing - passed ADR 35/01.

• South African Bureau of Safety (SABS 1207 / ECE-R13).

• Various mine & company level certification.

Slide 16

A Compelling Proposition COST SAVING

SAFER BRAKES

• Enclosed design prevents ingress of abrasive materials

• Fail safe spring applied rear brake

• Zero Emissions to the environment

• Oil cools the brake and maintains low operating temperature

• Reduced wear means consistent, safer braking

• IMPROVED SAFETY

REDUCED WEAR

Slide 17

Current Product Applications Light Commercial Vehicles (Landcruiser, Hilux, Canter,Isuzu)

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Current Product Applications

• Heavy Mining Vehicles - gearbox mounted driveline brake on a 30 tonne Load-Haul-Dump machine manufactured by DBT

• Industrial Brakes (conveyor brakes, drill rig slew motor brakes)

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Proven Product Track Record

• SIBS in the field for over 10 years in Australia and Canada

• Over 1200 units delivered

• In many cases outlast the base vehicle

• Used in Arctic, tropical and desert conditions

Slide 20

New Applications

SIBS[®] for Refuse Truck

Increased service intervals, lower maintenance costs, reduced brake noise, no brake emissions.

Slide 21

Refuse Truck Program

• Externally funded project

• $4 million development contract

• $0.25 million booked income

• $0.25 million prepayment for current work

• $1.5 million in ABT bank with quarterly draw downs against milestones

• • Further $2 million available after proof of concept

Slide 22

Applications Under Development

Driveline Brake - Concrete Agitator An emergency brake for underground mine vehicles

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Other Opportunities

• Technology has application on numerous applications where brake wear and heat build up is a problem with dry brakes eg military, rail, heavy transport,

• Elimination of fine particle emission could open up opportunities in various other mobile applications

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Global Reach

Existing Markets Target Markets Slide 25

Product Sales Growth

~~$2.53M~~ $2.09M [6 months] 2007/08 SNAPSHOT • H1 sales 07/08 $2.09 m ~~$1.36M~~ • compared 06/07 full year $2.53m • Significant bottom line improvement ~~$760K~~ • Refuse truck provide extra revenue • Focus on closing orders 04/05 05/06 06/07 H1 08 Slide 26

Improvement in Equity 04/05 05/06 06/07

$4.09M

$5.3M

($7.03M)

Slide 27

The Market

• Light Commercial Vehicles (LCV’s) used extensively in mining operations worldwide – Toyota, Nissan, Mitsubishi, Ford/Mazda

• Toyota dominate the market

• New LCV’s into mining in Australia is estimated at 7,500 to 10,000 annually

• South African and South American markets are of similar size

• SIBS available for Toyota Landcruiser and Hilux and readily adapted for other makes

Slide 28

How we make money?

• $12,000 to $16,000 sale price (full vehicle set)

• • Average margin (including spares) > 60%

• • $100k per month in spares

• 207 vehicle sets sold in 06/07

• Current Production capacity in Thailand 150 -

• 200 set per month

• • $4 million development contract in place for Refuse Truck Brake (~$80K per month spend profile)

Slide 29

THREE YEARS ACTUAL RESULTS

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Year Ended
30-Jun-05 30-Jun-06 30-Jun-07
$'000'S $'000'S $'000'S
QUANTITY OF BRAKES SOLD 15 90 207
Sales - Brakes (incl Spares) 760 1,367 2,531
Other income 49 219 70
TOTAL REVENUE 809 1,586 2,601
Percentage increase 96.0% 64.0%
UNDERLYING PROFIT/(LOSS) (4,542) (3,003) (1,939)
CASH BALANCE 103 1,643 1,053
EQUITY (7,026) 4,089 5,296
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TWO HALF YEAR’S ACTUAL RESULTS

		6 MTHS ACT	6 MTHS ACT
		30-Jun-07 $'000'S	31-Dec-07 $'000'S
	QUANTITY OF BRAKES SOLD	77	107
	Sales	1,232	2,091
	Other Income	47	33
	TOTAL REVENUE	1,232	2,124
	Percentage increase		72.4%
	UNDERLYING PROFIT/(LOSS)	(1,216)	(502)
	CASH BALANCE	1,053	697
	EQUITY	5,296	4,811

Driving the Growth (use of proceeds)

• Firm market foothold established

• Need to leverage from established base

• Sales resources has constrained growth

• Require more extensive sales and service network – regional sales and service centers

  • Australia East Coast

  • Australia West Coast

  • South Africa

• Broadening of product range

• Nissan, Mitsubishi, etc

• Broadening of geographic reach

• South Africa, South America, Europe, etc

Slide 32

Near Term Goals (6 months)

• Establish 3 service centres

• Mount Isa, Kalgoorlie and Johannesburg

• Drive to achieving break even sales volumes

• Meet technical gateways for Refuse Truck Project

• Broaden product range

Slide 33

Pro-forma Balance Sheet Dec 31 2007

CURRENT ASSETS	(based on full subscription)	Reviewed	Pro-forma Un-audited	Pro-forma Un-audited
Cash and cash equivalents		697	4,963
Trade and other receivables		742	742
Inventories		1,367	1,367
Other		75	75
		────────	────────
TOTAL CURRENT ASSETS		2,881	7,147
		────────	────────
NON-CURRENT ASSETS
Trade and other receivables		65	65
Property, plant and equipment		235	235
Intangibles		2,685	2,685
		────────	────────
TOTAL NON-CURRENT ASSETS		2,985	2,985
		────────	────────
TOTAL ASSETS		5,867	10,133
		────────	────────
CURRENT LIABILITIES
Trade and other payables		610	610
Interest-bearing liabilities		25	25
Provisions		90	90
		────────	────────
TOTAL CURRENT LIABILITIES		725	725
		────────	────────
NON-CURRENT LIABILITIES
Interest-bearing liabilities		81	81
Deferred Income		250	250
		────────	────────
TOTAL NON-CURRENT LIABILITIES		331	331
		────────	────────
TOTAL LIABILITIES		1,056	1,056
		────────	────────
NET ASSETS		4,811	9,077
		════════	════════
EQUITY
Issued capital		37,047	41,320
Foreign Currency Reserve		(28)	(28)
Other Reserves		477	477
Accumulated losses		(32,685) ────────	(32,685) ────────	Slide 34
TOTAL EQUITY		4,811	9,077
		════════	════════

Conclusion

• Sound technology with growing customer acceptance

• Delivers tangible benefits to customers

• Sound business model with global growth potential

• Opportunity exists to deliver increased shareholder value by building on foundation now established and driving revenue growth

Slide 35

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www.advancedbraking.com

Email: info.perth@advancedbraking.com Phone: +61 (0) 8 9273 4800 Fax: +61 (0) 8 9201 9986

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