Announcement of litigation judgment received

15 September 2014

Augean plc

("Augean" or "the Group")

Announcement of litigation judgment received

Augean, one of the UK's leading specialist waste management businesses, announces that a judgment has been received in relation to litigation it has been involved in with the previous owners of HiTech Limited, a business that Augean acquired during 2008.

Augean had lodged a claim of up to £2.5million against the previous owners ("the Defendants"), based on alleged breach of warranties contained in the sale and purchase agreement for the HiTech transaction. The Defendants lodged a counterclaim relating to non-payment of a potential earn-out payment of up to £0.7million following the transfer of the business.

The trial commenced on 29 April 2014 and completed on 19 May 2014. The judgment was handed down by the High Court of Justice in London on 12 September 2014.

The main findings of the judgment are as follows:

· The claim of Augean against the Defendants was upheld at an amount of in the region of £840,000

· The counterclaim of the Defendants against Augean was not upheld

· The Defendants were ordered to pay a proportion of legal costs of Augean, that proportion currently estimated at an amount in the region of £600,000, subject to assessment if not agreed.

The Defendants were not granted leave to appeal the findings by the court but do still have the option to seek permission to appeal the findings to Her Majesty's Court of Appeal in England.

The full judgment is available from Queen's Bench Division, The High Court of Justice, London.

Augean were advised on the litigation and the HiTech transaction by Walker Morris LLP.

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