Hms Hydraulic S Regulatory News (HMSG)

28 Aug 2012 08:50

HMS Group Investor Relations ReleaseMoscowAugust 28, 2012

HMS Hydraulic Machines & Systems Group plc(the "Company", and together with its subsidiaries, the "HMS Group")

HMS Group signs US$ 85 mn contract for "turn-key" project in Turkmenistan

Moscow, Russia - August 28, 2012 - HMS Group (LSE: HMSG), the leading pump manufacturer and provider of flow control solutions and related services in Russia and the CIS, announces today that it has signed a contract for reconstruction of 3 water-pumping stations worth US$ 85 mn with the Ministry of Water Resources of Turkmenistan.

In accordance with the contract, HMS Group will carry out all the works associated with a full reconstruction of water-pumping stations of the irrigation channel "Zakhmet-Turkmenkala" in the Mary province. These pumping stations will transmit water to the river Murgap for improving water supply to agricultural lands to the south of the river Kara-Kum.

The reconstruction represents the "turn-key" construction of new pumping stations, replacing the old ones, in the area with high seismicity at 7.0 on the Richter scale. There will be 50 specially designed-and-produced-by-HMS D12500 type pumps installed, with nominal power rate of 40 MW and capacity over 515 thousand cubic meters per hour in total. Blueprint design, production and delivery of unique pump-based integrated solutions will be completely executed by the Group's subsidiaries, representing different business units of the company. The project is to be completed in 2014.

According to Kirill Molchanov, Chief Financial Officer (CFO) and co-founder of HMS Group:

"At the beginning of 2011, we completed a turn-key construction of a similar water-lift pump station at the Yylgynagyz water channel in Lebap province, having proved HMS' capability to design and construct the demanding technical solutions for water utilities in harsh desert conditions. All equipment installed was designed and produced by HMS specifically for this project.

The signing of the follow-up contract fully corresponds to our strategy of developing export business and further strengthening the company's market positions in Central Asia".

For more information, please contact:Investor Relations: Inna Kelekhsaeva, Deputy Head of Investor RelationsPhone: +7 (495) 730-6601 x 1318, Kelekhsaeva@hms.ru

Media Relations: Nozima Karimova, Head of Press ServicePhone: +7 (495) 730-6610, Karimova@hms.ru

The "Zakhmet-Turkmenkala" water irrigation machine channel is a part of the 1445 kilometers long Turkmenbashi channel (former the Kara-Kum channel) - the main source of water in southern and southwestern provinces of Turkmenistan.

HMS Group is the leading pump manufacturer and provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. HMS' products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia's core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. The Group reported revenues of Rub 7.3 billion, adjusted EBITDA of Rub 1.4 billion and profit of Rub 485 million for the 3 months ended March 31, 2012. HMS Group's global depositary receipts ("GDRs") are listed under the symbol "HMSG" on the London Stock Exchange.

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