Surface Transforms Plc announced that it has been notified of its selection as a tier one supplier of a carbon ceramic brake disc to a major German automotive company, OEM 5. Pursuant to this selection, Surface Transforms has received an order for the production tooling. The final stage of the selection process is the signing of a master purchase agreement which is anticipated to take approximately 4-8 weeks to finalize. However, the principal commercial terms are already agreed. Specifically, the selection is for Surface Transforms to be the sole supplier of the carbon ceramic brake disc option on one axle of a new edition of an existing well-known model of German OEM 5. The existing model already uses carbon ceramic discs as an option and therefore the forecast production volumes reflect this experience. The lifetime revenue on this specific car model contract is estimated to be approximately €11.8 million commencing in October 2021. Annual revenue is estimated to be approximately €2.0 million per year before tapering off during 2026. Whilst this selection is the first with German OEM 5, the commercial understanding embraces the opportunity to be selected for further multiple vehicle platforms in the customer's portfolio over time. These potential awards could generate revenues of many times the value of this first contract. Following entering into the Agreement, the ceramic brake disc product will be part of German OEM 5's approved product list and whilst there will always be testing on new models, these tests are more about sizing and system integration than product evaluation. Moreover pricing has been agreed across the potential range of platforms providing a link between increasing volumes and reduced product pricing. The customer has stated that the potential for further model-by-model awards will reflect their experience of Surface Transforms' supply chain and quality performance.