Restructuring Participation in Japan

5 April 2013

Hydrodec Group plc

("Hydrodec" or the "Group")

Restructuring Participation in Japan

Hydrodec Group plc, the cleantech industrial oil re-refining group (AIM: HYR), announces that it will restructure its participation in Japan following a strategic review of its activity and the expiry of its strategic alliance agreement with Kobelco Eco Solutions.

Hydrodec will resume exclusive control and ownership of the Hydrodec technology, the Japanese patent and wider IP rights, including development rights across Japan and the wider East Asian market.

Hydrodec will continue to develop the strong relationship it has established with the management team at Kobelco Eco Solutions through a more flexible engagement model including licensing of the Hydrodec technology consistent with the Group's strategy as previously announced. This new approach will reduce cost and allow Hydrodec more control over the process and pace of market entry into key territories. It will also widen the choice of potential partners.

Ian Smale, Chief Executive Officer of Hydrodec, commented: "The scale of opportunity for our clean technology in the regulated Japanese market for treatment of polychlorinated biphenyl ("PCB") contaminated oil and equipment remains material, and we continue to target Japan as a significant source of potential value and returns for our shareholders. We are confident that Kobelco Eco Solutions remains an important contributor to this market and will have a significant role to play in this new strategic effort."

Hydrodec's cleantech catalytic hydrogenation process is the only non-destructive technology approved by the Japanese Environment Ministry for the re-refining and treatment of PCB contaminated transformer oil. The potential market for treatment of contaminated and used transformer oil in Japan is assessed as 600 million litres in place, and up to one billion litres over time including recycling of transformer oil for equipment decontamination through oil washing.

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Notes to Editors:

Hydrodec's technology is a proven, highly efficient, oil re-refining and chemical process initially targeted at the multi-billion US$ market for transformer oil used by the world's electricity industry. Spent oil is currently processed at two commercial plants with distinct competitive advantage delivered through very high recoveries (near 100%), producing 'as new' high quality oils at competitive cost and without environmentally harmful emissions. The process also completely eliminates PCBs, a toxic additive banned under international regulations. Expansion of the capacity and footprint of the business in the United States has been announced subject to the completion of a partnership agreement with an industry participant.

Hydrodec's plants are located at Canton, Ohio, US and Young, New South Wales, Australia and its shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.