MEDIA/ASX RELEASE 17 August 2010

Advanced Braking Technology Raises $3 million in a Share Placement

Advanced Braking Technology Ltd (ASX:ABV) today announced it has secured commitments to raise $3 million at 1.6c per share in an oversubscribed share placement to sophisticated investors. The placement will be conducted in two tranches with 116 million shares issued in Tranche 1 under the Company’s 15% capacity. The balance of the shares will be

placed in a second tranche subject to shareholder approval at the company’s AGM to be held on 26 October 2010.

Funds received from the placement will be used to:

• fund product development to augment and stimulate additional growth in

the mining sector; • provide additional funding support for the garbage truck project; • purchase specialised test equipment; and • provide general working capital.

The garbage truck brake project, which has already achieved proof of concept by

demonstrating significant operating cost and efficiency benefits, has funding support for the remainder of its pre-production testing phase (see 30 July 2010 announcement). The garbage truck brake will launch a significant new market for

the company’s braking systems. The attached presentation provides further details regarding the company’s current activities and future prospects. The offer has been managed by Southern Cross Equities Ltd.

Background Information – Advanced Braking Technology Ltd (ASX: ABV)

Perth-based Advanced Braking Technology Ltd (ASX: ABV) is dedicated to innovative braking

systems. The Company’s key asset is the Sealed Integrated Braking System (SIBS™), a comprehensively patented Australian invention.

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 minimize wear at the braking interface. 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 unparalleled safety, improved productivity and lower operating costs, and are engineered to survive the world’s harshest conditions.

The proven technology is also environmentally friendly, eliminating brake dust emissions and noise and squealing, and provides a wide-range of benefits for on-road, off-road and industrial

applications in terms of safety, reliability, performance and adaptability.

ENDS Released by: On behalf of: Nicholas Read/Kate Bell Mr Ken Johnsen Read Corporate Chief Executive Telephone: (+61-8) 9388-1474 Advanced Braking Technology Ltd Telephone: (+61-8) 9273-4800

INVESTOR PRESENTATIONAugust 2010

Garbage Trucks

Light Vehicles

Service Trucks Concrete Trucks

Slide 2

Company Snapshot• An Australian innovation in vehicle braking• Worldwide patents• Proven in the harshest mining conditions• Delivers cost, safety and environmental

benefits• High value, high margin product• In-house, low cost manufacturer of products• Attractive value proposition to high volume

truck market

Slide 3

Overview of TechnologyPatented Sealed Integrated Braking System

Single rotor enclosed in an oil filled housing

Rear brake fitted with fail-safe feature

Slide 4

Mine Tough Credentials• Over a decade of mine service• Meets regulatory and mine company safety

standards• Delivers operational cost savings• Standard fitment on many mines• Used in harshest environments

– Canadian arctic– PNG Jungles – Australian deserts

Slide 5

ABT’s Product Applications

and GROWING!

Slide 6

Blue Chip Customers

Slide 7

Business Model• Engineered in Australia (Perth)• Manufactured in Thailand (wholly owned)• Direct sales in Australia• Resellers in Canada and South Africa• High value high margin products• Developer of ongoing new product

applications• Australian Registered Research Agency

Slide 8

Thai Production FacilityISO 9001-2000 Accredited

Slide 9

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

2006 2007 2008 2009 2010

Other Income

Sales - Engineering andFitting

Sales - Spares

Sales - Brakes

Current BusinessMining Sales $000’s

GFC

Steady growth and providing positive contribution to overall business

* Audit sign off pending

*

$000

’s

Slide 10

Overall Business

-$2,500

-$2,000

-$1,500

-$1,000

-$500

$-

$-$500

$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000

2006 2007 2008 2009 2010

Other Income

Sales - Engineering and Fitting

Sales - Spares

Sales - Brakes

P & L

After Tax

$000’s

Total Income

$000’s

*

* Audit sign off pending

Slide 11

Current Business• Mining Sales side of the business provides

positive contribution• Current losses arise from development

activity in new product areas and additional support to truck project

• R&D cash grant of ~$300k p.a. • Non-cash component of losses ~$360k

– Depreciation and amortisation of IP

Slide 12

Growth StrategyBeyond Business As Usual

“Breaking into a Mainstream Market by leveraging off the mine tough heritage”

Slide 13

The Opportunity• Garbage truck brake development points to a

large opportunity in a mainstream market• The waste industry is “recession proof”• Technology established and proven in harsh

mining environment• Cost, safety and environmental benefits can

be delivered to a receptive marketplace• Opportunity for a market launch in 12-18

months

Slide 14

Garbage Truck Brake

• Waste industry confirms a need for improved braking solution

• Brake costs are up to $10k pa over 10 year truck life• Safety and reliability a key issue

• Elimination of noise and dust pollution a key driver• Expressions of interest for technical involvement in

the project and pre-release evaluation by customers

Slide 15

Waste Collection Market

Region New Truck Sales (annual)

Fleet Size(est.)

Australia 800 6,500 – 8,000

North America 20,000 ~ 200,000

Europe 6,000 ~ 60,000

Urban refuse collection is a major industry in North America, employing over 300,000 people. Its revenues approach US$50 billion p.a.

Slide 16

Opportunity • The Truck Brake has a target selling price of

$25,000 per truck• Sales in Australia to retro-fit represents a $25

million opportunity (at 30% of available market)• The Australian market alone represents a $10

million p.a. sales opportunity (at 50% penetration)• Australia is only 2% of the North American and

European market• Penetration in this market provides an entrée into

other “frequently stopping trucks” e.g. city buses

Slide 17

Brake Dust Emissions• A recent UK Government environmental study stated

ABT’s SIBS technology represented the “most promising abatement measures for the most polluting sectors”

• ABT’s SIBS technology was specifically identified as the enabling technology to achieve reductions in particulate matter caused by vehicle brake dust emissions

• It was estimated that 2.2 kilotonnes of PM2.5 particles would be emitted from vehicle brakes in the UK in 2020

• With a gradual introduction of SIBS into the vehicle fleet, it was estimated that by 2020 there could be a 0.4 kilotonne, or 18% reduction in PM2.5 emissions from vehicles in the fleet in the UK

Slide 18

Garbage Truck ProjectProof of Concept Sign Off in March 2010SIBS braking technology demonstrated on garbage trucks:

• Has the same brake feel/stopping character as dry brakes• Can be retrofitted to common garbage trucks without major

modifications• Gives extended brake service intervals and vehicle up-time• Provides an estimated 2.5 year payback on up-front cost• Reduces brake emissions (noise & airborne particles)• Demonstrates lower tyre wear• Meets safety and regulatory standards

Slide 19

Garbage Truck ProjectVehicle used to characterize typical use

City of Swan Garbage Truck SW 231

Slide 20

From Concept to RealityFront

Rear

Slide 21

First Test Truck

Slide 22

Brake Testing

Slide 23

Brake Testing 4 x 2

ST

D ST

D

AB

T AB

T

Improved Brake Performance

Slide 24

2nd Prototype VehicleABT Development Mule 2

Slide 25

6 x 4 Installation

Slide 26

Comparative Assessments

Brake feel assessed to equal or better in all areas

Slide 27

In-Service Trial at City of SwanLargest Local Authority in Metropolitan Perth @ 1,100km²

40,000 properties

Weekly refuse collection

2 weekly recycling collection

Slide 28

Time in service: 420 hoursDistance travelled: 8,100 km

19.28 km/hourPad Wear:(6mm wear limit per pad) 0.05mm average

0.11mm maximumFront Rear Tyre Wear: 33% average

38% maximumRear Rear Tyre Wear: 59% average

63% maximum

In-Service Trial - Results

Slide 29

Current Status• $2 million “Proof of Concept” Study completed

– Major project goals achieved and signed off by independent expert

• Key Performance Requirements met– Braking performance equal/better than OE– Brake Feel considered excellent

• Strong buy in from end users• Manufacturability and target costing confirmed

• Production Validation contract signed 30th July 2010

Slide 30

Proof of Concept• Key Achievements:

– 420 hrs of real world testing– Rig testing has validated other parts– Cooling Package developed– Core design ready for production release– 1% pad wear after 420hrs (average 60 microns)

(Note – standard brakes would be approx. 50% worn at 375hrs)

– 30% to 40% less tyre wear compared to truck on same rounds

– Operator feedback very positive

Slide 31

Value Proposition• 2.5 year payback on upfront cost of SIBS (not

including reduced tyre cost)

• Service interval extended from 3 months to at least 12 to 24 months

• Target incremental cost $25,000 per truck• Pre-assembled wheel ends will be supplied and

will be viable service exchange units • Safer and more reliable brake system• No brake squeal • No dust emissions

Slide 32

Next Steps• Production Validation – commenced Aug 2010• External funding support - $250k per quarter• 5 trucks will be put into service with fleet

operators to confirm real world service intervals and reliability

• Bench and other testing will validate other aspects

• 9 to 12 months fleet running will determine suitability for production release

• Initial sales could commence in 12 to 18 months• Targeting first retro-fit then new truck sales

Slide 33

Sales Potential(possible scenario)

GARBAGE TRUCK SALES AND PROFIT CONTRIBUTION

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1 2 3 4 5

Years

AM

OU

NT

$,0

00's

SALES REVENUE

GROSS MARGIN AND CONTRIBUTION

Assumptions• based on current cost and sales price projections• maintenance savings and benefits proven in R&D project• production Thai facility• some retrofit of < 4 year old trucks• entering US and European markets in year 3

Slide 34

Short Term Outlook

• Mining sales expected to continue at historical growth rates

• Mining profits expected to grow • Company will support truck brake program

and other new product growth areas• Working capital required to secure future

potential

Use of Proceeds• $0.5 mill – working capital movement buffer

• $0.5 mill – mining product enhancements• $0.5 - $1.0 million additional funding for truck

brake development • $0.5 mill – working capital to support inventory

build for truck brake launch

• <$0.5 mill – specialised test equipment

Slide 36

ShareholdersSubstantial Holders

• Directors and Management 15.9%(David Slack 14%)

• Richard Palmer and related parties 8.6%• Other top 20 holders 33.2%

• Shares on issue 774 million

• Options • Employees (exercise price 1.5c to 7.5c) 20.2 million• Other (exercise price 5.2c to 6.2c) 20.0 million

Slide 37

CONCLUSION• ABT maintaining its presence in mining

sector and focusing on securing additional sales and expanded product range

• Opportunity now presents itself to leverage the proven technology into the much more lucrative truck market

• Additional investment in capturing this opportunity is warranted to secure the long term growth potential

Slide 38

www.advancedbraking.com

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