Disposal of Knowsley plant and offices by Hydrodec

7 October 2015

Hydrodec Group plc

("Hydrodec" or the "Company")

Disposal of Knowsley plant and offices by Hydrodec UK

Hydrodec Group plc (AIM: HYR), the clean-tech industrial oil re-refining group, is pleased to announce that Hydrodec (UK) Limited ("Hydrodec UK"), a subsidiary of the Company, has completed the disposal of its Knowsley office premises, plant and associated assets in the UK to Mulberry Waste Limited ("Mulberry") for approx. £685,000 in cash. Operationally, Hydrodec UK has two transfer stations in the North West of England (Knowsley and Manchester) and, going forward, oil collection operations will be based out of its Manchester transfer station. In addition, as part of the disposal, Hydrodec UK has entered into a commercial arrangement with Mulberry for it to process workshop waste on behalf of Hydrodec UK.

Commenting on the disposal, Ian Smale, Chief Executive of the Company said: "Hydrodec UK has responded, and continues to respond to, and operate in, a tough trading environment. The disposal of the Knowsley office premises and plant is part of the process of realising operating efficiencies through the transition of the OSS and Eco-Oil businesses under a combined Hydrodec (UK) operating structure and brand. This combined Hydrodec (UK) operating structure will provide the security of feedstock supply which underpins the rationale and longer term strategy for a UK re-refinery."

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Notes to Editors:

Hydrodec's technology is a proven, highly efficient, oil re-refining and chemical process initially targeted at the multi-billion US$ market for transformer oil used by the world's electricity industry. Spent oil is currently processed at two commercial plants with distinct competitive advantage delivered through very high recoveries (near 100%), producing 'as new' high quality oils at competitive cost and without environmentally harmful emissions. The process also completely eliminates PCBs, a toxic additive banned under international regulations. Hydrodec's plants are located at Canton, Ohio, US and Young, New South Wales, Australia. In 2013, Hydrodec acquired the business and assets of OSS Group, the UK's largest collector, consolidator and processor of used lubricant oil and seller of processed fuel oil, with a national network of oil storage and transfer stations. Used oil is converted into processed fuel oil at OSS's plant at Stourport and principally sold on to the UK quarry and power industry. In April 2015, Hydrodec further acquired the business and assets of Eco Oil, a leading UK waste oil collector and supplier of recycled industrial fuel oil into the power and road stone industries. It is also one of four significant providers of waste management services to the marine industry in the UK, specifically oily-water slops or marine pollutant (MARPOL). In line with our stated intention to develop a base oil re-refinery in the UK, we have an exclusive licence agreement with California-based Chemical Engineering Partners (CEP) to develop the CEP wiped-film evaporation and hydrogenation technology in the UK as well as the basic engineering for a 75 million litre per annum capacity base oil re-refinery.

Hydrodec's shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.