ADVANCED BRAKING TECHNOLOGY LTD — Regulatory Filings 2012

Jun 12, 2012

13[th] June 2012

ASX/MEDIA RELEASE

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New brakes can eliminate 90 tonnes of harmful emissions

• Adoption of SIBS[®] braking system for garbage trucks throughout Australia could save 90 tonnes of particle emissions each year

• Studies demonstrate environmental and health benefits in reducing fine particle emissions

• Environmentally friendly SIBS[®] brakes for heavy commercial vehicles nearing commercialisation

Advanced Braking Technology Ltd (ASX:ABV) (“ ABT ” or “ Company ”) today announced that ongoing studies of its award winning SIBS[®] braking system have demonstrated the potential to eliminate over 90 tonnes of harmful particle emissions from the atmosphere each year.

Already widely used for light commercial vehicles, ABT's SIBS[®] braking system is being developed for use in heavy duty vehicles such as garbage trucks. Ongoing testing and studies by ABT have confirmed the adoption of SIBS[®] in garbage trucks throughout Australia could eliminate up to 90 tonnes per annum of harmful fine particle emissions from the atmosphere.

Based on information from various waste operators, traditional garbage truck drum brakes in service in Australia need replacing two to three times per annum. These drum brakes shed approximately 13kg of ‘wear’ particles before needing replacement, equating to over 30kgs of emissions per vehicle, per year.

Independent European studies show that 35% of brake wear particles are emitted into the atmosphere, the balance being retained within the brake system and vehicle and removed at servicing. These studies also found 98% of these ‘wear’ particles (known as PM10 - particulate matter less than 10 microns in diameter) shed in service are harmful to our health and the environment.

ABT estimates there are approximately 8,000 garbage trucks in service in Australia. This combined fleet is estimated to emit over 90 tonnes of potential harmful fine particles into the atmosphere each year, the majority of this being in highly urbanised and heavily populated areas.

In the USA there are over 200,000 garbage trucks in service. Using the same assumptions as the Australian fleet, the fleet wide adoption of ABT’s SIBS[®] braking system would eliminate over two kilotonnes per annum of fine particles sent into the atmosphere.

The latest Euro 5 Exhaust Emission Standard, in force in Australia, limits particle emissions for trucks. These standards are currently applied to exhaust emissions and alarmingly, there is no current legislation governing fine particle emissions from brakes. The fine particle emissions from brake wear currently exceed the exhaust limit by up to ten times.

ABT Chief Executive Officer Mr Ken Johnsen commented, “Our SIBS[®] braking system has long been known for its superior safety and cost saving features, and now we’re moving to commercialisation of the product for heavy commercial vehicles, we’re really seeing the environmental benefits of a braking system with zero particle emissions.”

“Local councils are coming under increasing pressure to support efforts to reduce waste and encourage more environmentally friendly practices. We’ve now demonstrated just how far the adoption of SIBS[®] brakes can go towards cleaning up your local community,” he said.

The SIBS[®] braking system is an enclosed “wet brake” where the friction surfaces run in a bath of oil. Extensive testing road testing and test track operation has confirmed extremely low wear rates with the new brake system on garbage trucks. Any wear particles are contained within the enclosed brake and there are zero particle emissions into the atmosphere from the brake system.

A 2009 UK Government environmental study[1] identified technologies with the “most promising abatement measures for the most polluting sectors”. In the report, ABT’s SIBS[®] braking system was specifically identified as the enabling technology to achieve reductions in particulate matter caused by vehicle brake dust emissions.

The SIBS[®] technology is well proven and has been applied to mine vehicles for over a decade. Today ABT estimates that it has secured 25% of the available market in Australia of light commercial vehicles used in mining, the majority of these vehicles being Toyota Landcruisers.

The application of the technology to garbage trucks is in the final stages of preparation for commercial sale. Various trucks are being tested in real world conditions and supply arrangements are being finalised with chosen production vendors.

The preparation for commercial sale is being supported by a Commonwealth Commercialisation Australia Early Stage Commercialisation grant.

1 A copy of the report can be found at www.advancedbraking.com

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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.