HYD.L Regulatory News (HYD)

15 August 2012

Hydro International plc

("Hydro" or the "Group")

New Distribution Agreements & €2.0m Contract Win in Russia

Hydro International (AIM: HYD), a leading provider of environmentally sustainable and innovative products for the control and treatment of water, is pleased to announce that it has signed two new distribution agreements in Russia and Romania, and the first contract win in Russia.

Ecoline Ltd in Russia

Hydro has signed a strategic business partnership with the leading Russian engineering company, Ecoline Ltd, to supply stormwater products into Russia, the Ukraine, Belarus and Kazakhstan. Established in 1998, Ecoline Ltd is one of Russia's leading companies for the design and delivery of water solutions. The Russian environmental market is emerging and expected to grow rapidly. Pollution control and improving water quality are key priorities and present opportunities for Hydro and its new partner.

The Ecoline relationship has already generated a significant early success, and Hydro is pleased to announce the signing of a €2.0m contract to supply distributed stormwater storage systems and Hydro's Downstream Defender stormwater quality systems to the Northern Capital Gateway Consortium, which is redeveloping St Petersburg International Airport (Pulkovo International). The new St Petersburg Airport is due to be the largest in the Baltic region. The contract is expected to be delivered within the current financial year.

C&V Water in Romania

Hydro has also appointed C&V Water as a distributor of its wastewater products to Romania's rapidly developing water infrastructure market. Hydro has identified Romania as a strategic priority due to the large number of water and sewerage infrastructure projectsplanned, funded by the EU. Such projects include the building of new wastewater treatment plants, the upgrading of existing infrastructure, and a major new initiative to connect a larger proportion of the population to the sewerage network.

Hydro's advanced vortex separation technologies offer an advantage to wastewater plant operators who require innovative, sustainable, low maintenance solutions. Romania has to spend €3 billion between now and the end of 2018 on its wastewater treatment plants as part of its EU funding conditions (Source: Griro, 2012).

Steve Hides, CEO of Hydro International commented: "Russia and the broader Eastern European market represent a good opportunity for Hydro in terms of value and scope. We are therefore delighted to be working with C&V Water in Romania and Ecoline, one of the largest water management companies in Russia. It is particularly encouraging to have such a significant contract with St Petersburg Airport at this early stage in the relationship.

"The expansion of Hydro's operations outside its core UK and USA markets is being driven by our International Business team, and we continue to seek further opportunities to form relationships with well-qualified business partners who can introduce our technologies into attractive international markets."

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About Hydro International

Hydro International plc (AIM:HYD) (Hydro) is a global supplier of environmentally sustainable products and innovative solutions 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, Mexico, European Union, Malaysia, Singapore, Japan, Korea, Australia and New Zealand.

Please visit the website for further information: www.hydro-int.com