Acquisition

26th May 2005 12:35

Hydro International PLC26 May 2005 Hydro International plc ACQUISITION OF THE VEXAMUS LIMITED GROUP ("VEXAMUS") Hydro International plc ("Hydro" or the "Group"), the supplier of vortex andrelated technologies for control and treatment of stormwater and wastewater, ispleased to announce that it has acquired Vexamus for a cash consideration of£150,000. The main Vexamus trading company is Vexamus Water Limited, which is anestablished equipment supplier to the water and wastewater sector in the UK.Vexamus, based in Ely, Cambridgeshire, supplies a range of leading treatmentprocesses to the market and has been successful in establishing frameworkagreements with key utilities such as United Utilities, Severn Trent andScottish Water. The financial statements of Vexamus for the year ended 30 September 2004 showedturnover of £10 million, a loss before tax of £0.9 million and a net liabilityposition of £80,000. Vexamus has been cash constrained in the past, which has, in the Directors view,left it unable to fund the changes required to make the business profitable. TheDirectors are confident that, as part of an enlarged Group the required changeswithin Vexamus will be capable of being funded with a view to returning Vexamusto profitability and believe that the acquisition will be earnings enhancing inits first full year of Hydro ownership. The acquisition of Vexamus gives Hydro significantly improved access to the AMP4water industry market in the UK and strengthens our offering to the overseasmarket. In addition the Group will benefit from some maintenance, servicing andspares business generated by Vexamus. 26 May 2005 Enquiries:Keith Marshall (Finance Director) - 01275 878 371Hydro International plc This information is provided by RNS The company news service from the London Stock Exchange

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