Hightex Group Regulatory News (HTIG)

16 May 2007 09:30

Hightex Group PLC16 May 2007 16 May 2007 Hightex Group plc ("Hightex" or the "Company") Chairman's AGM statement At the Company's Annual General Meeting held this morning, Mr Charles DesForges,Chairman, said: "Since the year end, I am pleased to report that good progress has been madeboth in developing the core membrane business and establishing the foundationsof the solar energy operation. A significant step was taken in 2006 by settingup a US subsidiary company in order to enter the North American market with itslarge potential for our Membrane business. Significant contract opportunitieshave already been identified with a view to signing contracts during the courseof 2007. Another important development has been made in South Africa. A South Africansubsidiary company has been established to allow Hightex to bid for stadiumprojects related to the 2010 FIFA World Cup competition. A letter of intent hasbeen signed with Circle Capital, a financial company based in Cape Town and ledby Mr Hlumelo Biko, whereby Circle Capital will be invited to acquire a minorityshareholding in the South Africa company and will materially assist Hightex inaddressing this expanding market both in terms of structural membranes and theapplication of solar energy solutions to the problems of making efficient use ofalternative energy sources in southern Africa. I am pleased to report that solid progress has been made in both of our businessareas. The Membrane business has already achieved sales in the year to dategreater than in the whole of 2006. We have identified a number of projectopportunities in various countries, which have led to the submission of contractbids, which, if successful, would increase significantly the turnover for thebalance of 2007 and in 2008. On the solar side of the business, Hightex has signed a letter of intentregarding the development of flexible solar cells for exclusive use inconjunction with membrane materials so as to provide both structural andenergy-development features within an architectural "Envelope". Additionally, aprototype machine has been constructed and installed at the company's premisesin Germany, which can use solar energy to either heat or cool a contained space.This unit allows the company both to demonstrate the practical reality of usingsolar energy and to evaluate its potential economic value to customers. Hightex plans to exploit this synergy between architectural membrane and solartechnology, so as to provide intelligent solutions to the problems andopportunities presented by the demand for energy-efficient buildings. We believe that the economic outlook for both the membrane and solar businessesis most promising as they address matters of increasing importance to society. Iam confident that the skilled and dedicated people led by an experiencedexecutive team, which make up the Hightex Group, will grasp these opportunitiesby building on our strengths, expanding our business by successfully enteringnew markets using innovative technology and thereby create value for all ourstakeholders. I look forward to reporting to you on these developments in theyears ahead." This information is provided by RNS The company news service from the London Stock Exchange