Vivergo Fuels Limited

Redhall Group plc

("the Company")

VIVERGO FUELS LIMITED

Redhall Group plc ("the "Group"), the specialist engineering support services group, announces that its subsidiary, Redhall Engineering Solutions Limited (the "Company"), has agreed a full and final settlement with its former employees on its contract with Vivergo Fuels Limited ("Vivergo") which was brought to an end on 14 March 2011 following the Company's acceptance of a repudiatory breach of contract by Vivergo.

This agreement compromises, with no admission of liability whatsoever, any claims which the Company's former employees felt they might have had against the Company or the Group arising from their employment with the Company coming to an end. The £1.2m cost of this settlement was included in the Board's assessment of working capital adequacy included in its trading update on 7 April 2011 and closes off the potential for future claims arising from the Company's former employees.

The Company's position remains that the Transfer of Undertakings (Protection of Employment) Regulations 2006 ("TUPE") should apply so as to automatically transfer the employment contracts of all the former employees of the Company employed on the Vivergo contract on 14 March 2011 to either Vivergo or to a new contractor engaged to provide the same or similar services to Vivergo. The agreement does not preclude the Company's former employees from pursuing unfair dismissal claims under TUPE against Vivergo or a new contractor arising from the bringing to an end of the Vivergo contract.

As previously stated the Group intends to pursue recovery of all of its outstanding costs plus damages from Vivergo.

For more information please contact:

Redhall Group plc Tel: +44 (0)1924 385 386

David Jackson, Chairman & Chief Executive

John O'Kane, Group Finance Director

Buchanan Communications Tel: +44 (0) 20 7466 5000

Tim Anderson / Isabel Podda /James Strong

Altium, Financial Advisers and Brokers to Redhall Tel: +44 (0) 845 505 4343

Simon Lord / Paul Lines