ADVANCED BRAKING TECHNOLOGY LTD — Capital/Financing Update 2012

Apr 1, 2012

ASX/MEDIA RELEASE

2 April 2012

==> picture [273 x 94] intentionally omitted <==

Final Testing Phase for Innovative Garbage Truck Braking System

• Successful testing confirms low levels of brake wear in heavy vehicle applications

• First test truck for final phase of testing put into service in a metropolitan council

• Preparations underway to commence commercialisation

• Senior automotive engineer appointed to support launch

Advanced Braking Technology Ltd (ASX: ABV) (“ ABT” or “ Company ”) today announced the commencement of the final testing phase for its patented braking system for garbage trucks. Successful completion of this phase will be followed by a decision to begin commercial sales of the product.

ABT’s garbage truck braking system utilises the Company’s patented “SIBS™” technology, which is fitted to an estimated 25% of light vehicles used in mining in Australia. The newly designed brake solution is expected to deliver substantial cost savings to garbage truck operators by reducing the frequency of major servicing, from as short as every three months to in some cases beyond 2 years. Of major appeal to local councils, SIBS™ completely eliminates brake squeal, a common complaint with garbage trucks, is environmentally friendly and the brakes produce no fine brake dust, a significant suburban pollutant.

The recent accumulation of over 750 hours of heavy load testing of two trucks fitted with SIBS™ brake sets has confirmed the expected low levels of brake wear, making it a compelling product for waste operators. These results now allow the commencement of commercial testing of trucks fitted with production representative SIBS™ brake sets in municipal waste collection. The first of these test trucks was put into service last week at a West Australian metropolitan council.

In parallel with the product testing, preparations are now underway for the commencement of commercial production. Some of the long lead time items required for production have been delivered to the Company’s manufacturing facility in Thailand, where sample parts are currently being made. Detailed vendor qualification meetings are also taking place in Australia and overseas.

Over the next 3 months the data and field experience from testing of this fleet, combined with other bench and test track testing, will feed into the decision making process to proceed to commercial sale of the product. Additional field testing will continue beyond this point including confirmation testing of production brake sets.

Further resources are being added to the project, including the appointment of a highly credentialed senior automotive engineer, Dr Malcolm Lambert, as the new Program Manager. Dr Lambert was appointed earlier this month following a career with Delphi in the United Kingdom.

ABT Chief Executive Officer Mr Ken Johnsen stated, “The latest test results confirm that detailed development throughout 2011 has resulted in a very robust and wear resistant combination of materials in the brake design. After exhaustive testing we expect these results will be maintained in the commercial trials. Other aspects of the project remain on schedule ahead of an expected commitment to the formal production launch program by mid-year.”

Since March 2008, over $4 million has been spent developing the product to its current stage. The final test phase is being supported by a $2 million Commonwealth Commercialisation Australia non-repayable grant, to assist with the product’s early commercialisation.

ABT remains in close contact with key suppliers, end users and heavy vehicle manufactures regarding the requirements to achieve a successful market launch for the product.

In terms of ABT’s overall business, mining sales remain strong with continued growth as foreshadowed in the Company’s half yearly result. A full commercial update will be provided with the third quarter cash flow statement to be released later this month.

- ENDS -

For further information, please contact:

Mr Ken Johnsen Chief Executive Officer Advanced Braking Technology Ltd Telephone: +61 (0)8 9273 4800

About Advanced Braking Technology Ltd

Advanced Braking Technology Ltd (ASX: ABV) develops innovative braking systems, with its main product being the Sealed Integrated Braking System (SIBS™), a comprehensively patented Australian invention, now used widely in light commercial vehicles in the mining industry.

SIBS™ is a fully enclosed, single rotor, high speed wet brake. The brake rotor runs in a bath of oil that serves to cool the brake and minimise wear. An innovative fail safe feature is incorporated into the rear axle brake. As a result, the brakes are virtually wear and maintenance-free and may outlast the vehicles they are fitted to, unlike conventional drum and disc brakes. SIBS™ brakes deliver better safety, improved productivity and lower operating costs, and are engineered to survive the harshest conditions. The proven technology is environmentally friendly, eliminating brake dust emissions and noise and squealing, and provides benefits for on-road, off-road and industrial applications in terms of safety, reliability, performance and adaptability.

Following the success of the product in the mining sector, the Company has branched into the waste disposal sector, developing the SIBS™technology into an innovative garbage truck braking system. After four years of development, the project is now in its final testing phase before commercialisation of the product.

Based in Perth, Western Australia, Advanced Braking has a manufacturing plant in Thailand, worldwide patents on its technology and an extensive reseller network.