Hightex Group Regulatory News (HTIG)

Hightex Group plc

("Hightex" or the "Company")

Update on financial position and suspension of trading

Hightex, a leading systems engineering company which designs, fabricates and installs large area, cable supported membrane roofs and facades worldwide, today provides an update on its financial position.

The installation of the roof of the Maracana Stadium in Rio de Janeiro, Brazil (for the 2014 World Cup) was completed in May 2013. Hightex is actively pursuing other contracts in the United Kingdom, the Middle East and in Russia for the 2018 World Cup.

Despite lower than expected SolarNext revenues in the first half year, management anticipates that SolarNext will reach a near break-even result in 2013 and achieve profitability in 2014.

The installation of the membrane roof on two other Brazilian stadia, Estadio Beira-Rio in Porto Alegre and Arena Das Dunas, Natal, was delayed during July and August 2013 because of late completion of steel works but is still expected to be completed this year. Hightex will soon start its installation work on the Estadio Beira-Rio stadium.

In preparation of its half yearly reportfor release this month, the Company has experienced difficulty in obtaining the relevant financial information on these three significant contracts from its Brazilian joint venture, SEPA Hightex Coberturas Ltda, The consequence of this is that the Directors believe there is, at present, material uncertainty in relation to certain of the Brazilian receivables. Accordingly the Directors consider that they are not currently in a position to issue interim results until there is greater certainty in respect of these receivables. It will not be possible to clarify the position in the immediate future and thus the Company is unable to meet its reporting timetable in relation to the announcement of its half yearly report for the six months ended 30 June 2013. Consequently, the Company's shares have been suspended from trading on AIM from 7.30am this morning.

In addition, as a result of delays in substantial cash receipts due to it from contracts in Brazil and minor delays from other projects the Company finds itself with very limited cash resources and without additional funding or significant receipts may not be able to continue to trade. Hightex is in active discussions with a number of potential providers of short term finance and continues to take all appropriate actions to recover amounts due in respect of Brazilian projects.

The Company's ordinary shares will be readmitted to trading on AIM on publication of its half yearly report and a further announcement will be made in due course.

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