Director's dealing in securities

 17 January 2011

Hydrodec Group plc

("Hydrodec" the "Company")

Director's dealing in securities

The Company has today received notification that Ludgate 181 (Jersey) Limited, an investment company of which John Gunn, non-executive Deputy Chairman of Hydrodec, is a director and in which he and his family own approximately 30 per cent. of the shares, has today sold 800,000 ordinary shares in the Company at 9p per share.

The sale was effected by the manager of Ludgate 181 (Jersey) Limited in order to fund part of a share buy-back by Ludgate 181 (Jersey) Limited of its own shares for subsequent cancellation. Neither John Gunn nor his family propose to take part in the share buy-back for which the ordinary shares were sold. The Company has been informed that Ludgate 181 (Jersey) Limited has no current plans to sell any more shares in Hydrodec as no further share buy-backs are planned. Following the sale Ludgate 181 (Jersey) Limited retains a holding of 5.9 million ordinary shares in the Company.

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