ACI Wins £10.8m Defence Sector Orders

17 November 2014

CORAC GROUP PLC

("Corac" or the "Company")

ACI Wins £10.8m Defence Sector Orders

Corac Group plc is pleased to announce that its subsidiary Atmosphere Control International (ACI) has received two orders for its Combined Oxygen Generation System (COGS). The combined value of the orders is £10.8m.

One order is from BAeSystems Marine Ltd. for two boat sets under the Royal Navy's Astute Class submarine build programme. The systems will be manufactured at ACI's Portsmouth facility for delivery in 2016.

The second order is from the Ministry of Defence for an additional two systems for in-service submarine refit, and one for shore-based training. These will also be built in Portsmouth over the next three years.

Phil Cartmell, Corac Group Chief Executive Officer commented:

"We are very pleased to have confirmed these orders for our advanced atmosphere management systems. They are a result of the close relationship that our defence business has established across the Royal Navy submarine fleet, with the Astute and other programmes, under our strategy to work closely with and maximise return from our established customer base.

"This work creates an excellent platform from which we can expand our activities as a successful engineering business in aerospace and defence. It adds significantly to our sector order book, provides good revenue visibility for the Group as a whole and is consistent with our expectation of improving financial performance."

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NOTES TO EDITORS

Corac is a group of innovative, UK based engineering companies, active in defence, energy and industrial sectors. Group companies produce valuable solutions in compression systems, renewable energy, atmosphere management and fabricated equipment. Corac Group shares have been traded on the London Alternative Investment Market (AIM) since July 2001.

Atmosphere Control International designs, develops and manufactures advanced air management systems for submarines, surface ships and other platforms. From their production centre in Portsmouth they support all of the Royal Navy's conventional and nuclear submarine fleets and many other international customers.