HYD.L Regulatory News (HYD)

24 May 2012

Embargoed until 07:00

Hydro International plc

("Hydro" or the "Group")

AGM Statement

Hydro International plc (AIM: HYD), a leading provider of environmentally sustainable and innovative products for the control and treatment of water, will be holding its Annual General Meeting today at 12 noon at the Group's headquarters located at Shearwater House, Clevedon Hall Estate, Victoria Road, Clevedon, BS21 7RD. At the meeting, the Board will make the following update.

The trading environment has remained challenging through the early part of 2012, which has resulted in delays in the timing of some projects. As a consequence we expect the first half performance to be lower than the record performance set in 2011, and the full year results to be significantly weighted towards the second half of the year. New enquiry levels remain buoyant and although much still needs to be done the pipeline of potential opportunities is strong.

Wastewater Review

Following the difficulties experienced with project flow during 2011, the UK Wastewater business has seen an increase in activity in 2012. In addition to the ongoing delivery of major sludge scraper contracts for Thames Water, the division has secured a number of key contracts from water companies under the AMP5 asset management programme. These are expected to drive overall growth in divisional revenues in 2012.

Although there are signs of increased pressure on projects from public sector spending restrictions in the US Wastewater business, trading is generally tracking at a stable level.

Stormwater Review

In the UK, trading, which is closely aligned to new-build construction activity, is showing signs of stepping back as both public and private sector investment levels are being impacted. However, the division has been progressing a number of key initiatives during the first quarter, including the market launch of the Hydro-Brake Optimum® flow control and the establishment of Hydro Consultancy.

The US Stormwater team is focused on developing the relationship with our master distribution partners, ADS and ACF. This is providing continuing encouragement, and although new orders have been relatively slow to materialise, high enquiry levels are being generated and confidence is growing.

International Expansion

The division has continued to build on the success achieved in 2011 on key stormwater pollution and emerging flood control projects in Malaysia. The Group is now looking to reinforce its developing position in key markets by deploying regional resources to better support our network of distribution partners.

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About Hydro International

Hydro International plc (AIM:HYD.L) (Hydro) is a global supplier of environmentally sustainable solutions and innovative products for the control and treatment of stormwater, wastewater and combined sewer overflows. Hydro's products use a range of advanced technologies including award-winning advanced vortex technology. Headquartered in Clevedon, North Somerset, Hydro also operates in the UK from offices in Ely, Cambridgeshire as well as across the US from bases in Portland, Maine and Hillsboro, Oregon. The Group has a growing presence outside of its core US and UK markets in Ireland, Egypt, Middle East, European Union, Malaysia, Singapore, Japan, Korea, Australia and New Zealand.

Please visit the website for further information www.hydro-international.biz.