New feedstock contract won from US utility

6 November 2012 

Hydrodec Group plc

("Hydrodec" or the "Company")

New feedstock contract won from US utility

Hydrodec Group plc, the cleantech industrial oil re-refining group (AIM: HYR), is pleased to announce that it has recently entered into a used transformer oil purchase contract with a major US electricity utility.

This is the first time Hydrodec has signed a direct procurement contract with this utility and follows a competitive tender that considered re-refining as an alternative solution to incineration of waste oil. Hydrodec's cleantech process will enable more than 99% per cent of the spent material to be recovered and re-refined into its premium-grade SUPERFINETM branded transformer oil for sale into the open market.

The contract does not commit to a specific volume, but Hydrodec's US operational management expect to source up to 1.5 million litres of used transformer oil from it in 2013, thereby further strengthening the Company's feedstock supplies.

Ian Smale, Chief Executive, commented: "This is the ninth US utility this year to supply used oil directly to Hydrodec and reflects encouraging progress with our procurement strategies in the US. Securing this particular contract is especially pleasing as it was a key target and followed a tender process where this utility has now endorsed re-refining of its used oil as an acceptable substitute to incineration. New sources of feedstock such as this will provide confidence in and underpin the expansion case for the North American operation in 2013."

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Notes to Editors:

Hydrodec's technology is a proven highly efficient oil re-refining and chemical process which is being initially targeted at the multi-billion US$ market for transformer oil used by the world's electricity industry. The Group takes spent oil, including polychlorinated biphenyl ("PCB") contaminated oil, as the primary feedstock, which is then processed at its two plants enabling 99 per cent or greater recovery of oil for reuse while also eliminating PCBs, a toxic additive banned under international regulations, without environmentally harmful emissions.

Hydrodec's plants are located at Canton, Ohio, US and Young, New South Wales, Australia. The Group's shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.