Interim Management Statement

Cosalt plc

("Cosalt" or "the Group")

Interim Management Statement

Cosalt (www.cosalt.com) announces its Interim Management Statement in respect of the period from 1 January 2011 to 18 May 2011.

As announced on 3 May 2011, the Group has exchanged contracts for the sale of the entire issued share capital of certain subsidiaries ("the Disposal") substantially comprising its UK and continental Marine operations to Survitec Group Limited. Further details of the Disposal were provided in that announcement. The Group expects to use the net proceeds of approximately £27.0 million to reduce its bank borrowings, which stood at £30.2 million at 30 April 2011. The Disposal constitutes a Class 1 Transaction under the Listing Rules and therefore requires shareholder approval. The Group will therefore, in due course, send a circular to shareholders convening a general meeting at which shareholders will be asked to vote on a resolution to approve the Disposal.

Trading conditions during early 2011 have continued to be challenging, although there are now signs of an improvement, particularly in Cosalt Offshore. The Group as a whole is trading broadly in line with the Board's expectations.

ENQUIRIES: