Hightex Group Regulatory News (HTIG)

Hightex Group plc

 ("Hightex" or "the Group")

Trading update

As previously announced, Hightex Group plc (AIM: HTIG), a leading systems engineering company which designs and installs large area, light weight membrane structures worldwide, expects to announce its interim results to 30 June 2011 on 28 September.

Unaudited revenues are expected to be approximately €17m, showing strong growth of 22% over the same period last year. This growth has been driven from three contracts, each with a significant element of innovative engineering: the retractable roof above the Olympic Stadium in Kiev, Ukraine; the roof over the National Stadium, Warsaw, Poland; and the entire retractable roof and fixed façade on the BC Place Stadium, Vancouver, Canada. Each was larger than any contract Hightex had ever won before. This increase was due to the fact that Hightex either tendered for a larger scope of work (for example in Kiev, to include the lifting of cable net) or it developed new systems (for example at BC Place, the world's first retractable cushion roof). These projects are presently near to finalisation and were all constructed successfully.

However Hightex identified some cost overruns due to complex technical challenges, which innovation inevitably involves, and an unforeseen market situation on the equipment supply side. On two of these projects Hightex tried to compensate for these cost overruns during the installation phase of the projects which started in June and July 2011. Although Hightex will not reach the expected margins on each of these large projects, all these projects will close with a positive margin. In addition Hightex again enhanced its reputation as a technological innovator and supplier of total roof and façade systems, at the same time acquiring valuable new technical expertise which further sets the company above its competitors.

The board will give an update of these issues at the time of the interim results, but anticipates that the first six months will show an operating loss of approximately €1.3m.

The absence of any new significant contracts being awarded so far this year to any company in Hightex's strategic target markets will have the effect that the results for the year to 31 December 2011 will also show a loss, but the board is making good progress on potential new significant contracts in Europe, Latin America and the Middle East and is optimistic of securing contract wins. As at 30 June 2011, Hightex had cash reserves of €3.1m and borrowings of €2.9m as well as trade receivables of €9.9m and trade payables of €9.6m.

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Notes to Editors

Hightex Group is a specialist provider of large area architectural membranes for roofing and façade structures. The membranes are typically used in roofs and façades for sporting stadiums and arenas; airport terminals; train stations; shopping malls and other buildings. This type of structure is a competitive alternative to glass as it is cheaper, lighter, and safer as well as being flexible to create complex shapes and it can span larger areas. Hightex uses environmentally friendly materials and is focussed on innovative technology and coatings, which help to reduce a building's energy costs.

Hightex, one of only two international companies to design and install these structures worldwide, has been involved in the construction of a number of very high profile buildings including the Cape Town Stadium and the roof of the FNB Stadium in Johannesburg built for the 2010 FIFA World Cup, the Wimbledon Centre Court retractable roof, the Burj al Arab Hotel in Dubai and the roof of the Suvarnabhumi International Airport in Bangkok.

The global market for membrane structures is estimated by the Hightex directors to approach around €350 million a year, and is growing as a result of the demand for energy efficient buildings and the popularity and cyclical nature of sporting events, which give rise to a continuing need for upgraded and new buildings and stadiums.

Headquartered in Rimsting, Germany the Group employs approximately 45 people and is listed on the AIM market of the London Stock Exchange (LSE: HTIG). Further information on Hightex Group plc can be found at www.hightexworld.com