Contract Award

HYDRO INTERNATIONAL plc

MAJOR NEW PROJECT

Hydro International plc ("Hydro"), the provider of products for the control and treatment of water, is pleased to announce that it has been awarded a £15.6 million contract for its innovative Zickert Sludge Scraper technology. The contract with GBM, the joint venture of Galliford Try, Biwater Treatment and Mott MacDonald, is part of GBM's wider £63 million contract to upgrade the Beckton STW sewage treatment works under Thames Water's AMP 5 investment programme.

The Zickert Scraper technology is an innovative sludge transportation system for use in sedimentation tanks reducing operating and infrastructure capital costs when compared to conventional sludge scraper systems.

The project, the largest in Hydro's history, will include the installation of equipment to tanks equivalent to approximately 10 football pitches. Construction is expected to start in March 2011 and is due for completion in 2015.

Tony Hollox Tel: +44 (0) 1275 878371

Chief Financial Officer

Hydro International plc

Richard Day Tel: +44 (0) 20 7614 5917

Arden Partners plc (Nominated Adviser and Broker)

2 November 2010