TPG.L Regulatory News (TPG)

7 Feb 2006 07:01

Corac Group Plc07 February 2006 For Immediate Release 7 February 2006 CORAC GROUP PLC SECOND CONTRACT FOR INDUSTRIAL AIR COMPRESSOR Corac Group plc ('Corac'), the intellectual property and licensing companyspecialising in compressor technology, is pleased to announce a seconddevelopment contract for its innovative industrial air compressor withLoebersdorfer Maschinenfabrik AG ('LMF'), the Austrian compressor manufacturer. LMF is a specialist compressor manufacturer with a strong internationalreputation. It supplies compressors for seismic work for the oil and gasindustry, high pressure process applications, as well as PET blowers for theplastic bottle industry. Many of their clients are internationally well-knowncompanies. LMF are seen as premium suppliers who have patented economicsolutions for applications in these areas. Corac's turbo compressors willprovide an even more cost-effective solution, reducing the size of the overallcompressor unit, which effectively turbo charges the piston machines requiredfor many high-pressure applications. Initial work on the contract will be tointegrate the two respective companies' machines and develop a supply and salescontract. Industry market statistics indicate a conservative market of €35m per annum.However, the joint technology has a much greater market potential which isexpected to exceed €150m per annum. Dr Bernhard Muller, Managing Director of LMF, commenting on this contract said: "We supply compressor machines worldwide to leading organisations and have arenowned reputation for reliability and service. Working with Corac will enableus to offer a product which will be technologically advanced and bring manyadvantages to the industry." Professor Gerry Musgrave, Executive Chairman of Corac, said: "This second contract for our industrial air compressor technology follows ourannouncement on 28 December for our CS Fusion machine, and underlines theindustry's recognition of Corac's technology. This contract provides Corac withan additional route into the industrial air sector. Having LMF, with theirworldwide reputation, as a partner will also further enhance our capabilitiesand market position." For further information: Corac Group plc 01895 813463Prof. Gerry Musgrave, Executive Chairman Buchanan Communications 020 7466 5000Richard Darby, Suzanne Brocks, Ben Willey This information is provided by RNS The company news service from the London Stock Exchange