MEMORANDUM OF UNDERSTANDING

18 October 2010

LAMPRELL PLC

("Lamprell" or the "Company")

LAMPRELL ANNOUNCES MEMORANDUM OF UNDERSTANDING WITH EURASIA DRILLING COMPANY LIMITED

Lamprell (ticker: LAM), a leading provider of specialist engineering services to the international oil & gas and renewables industry, confirms that pursuant to an announcement issued earlier today by Eurasia Drilling Company Limited ("Eurasia"), it has entered into a Memorandum of Understanding with Eurasia for the construction of a Le Tourneau designed super 116E jackup drilling rig to be used in the Caspian Sea. The parties are currently in contract negotiations with the intention of entering into a binding construction contract.

Enquiries:

Lamprell plc +44 (0) 207 920 2347Jonathan Silver, Chairman

Nigel McCue, Chief Executive Officer

Scott Doak, Chief Financial Officer

M:Communications, London Patrick d'Ancona +44 (0) 207 920 2347

Georgina Briscoe +44 (0) 207 920 2348

Notes to editors

Lamprell, based in the UAE, has played an increasingly prominent role in the development of the offshore industry in the Arabian Gulf for over 30 years, in later years providing specialised services to the offshore oil and gas industry.

·; Lamprell's three primary facilities are in Port Khalid and the Hamriyah Free Zone, in the Emirate of Sharjah, and in the Jebel Ali Free Zone, in the Emirate of Dubai, all of which are in the UAE.

·; The principal markets in which Lamprell operates, and the principal services it provides, are:

o Engineering, procurement and construction of jackup rigs, liftboats and drilling related equipment;

o Upgrade and refurbishment of offshore jackup rigs;

o New build construction for the offshore oil and gas sector, including Floating Production, Storage and Offloading systems and other offshore and onshore structures; and

o Oilfield engineering services, including the upgrade, refurbishment and new building of land rigs.