Signing of New Banking and Borrowing Facilities

For immediate release: 15 August 2012

Specialist Energy Group plc

("Specialist Energy Group", "SEG" or the "Company")

Signing of New Banking and Borrowing Facilities,

Directorate Change and Operational Update

Further to the announcements of 10 April 2012 and 15 May 2012, Specialist Energy Group plc (AIM: SEGR), the specialist engineering group, is pleased to announce the completion of new borrowing and guarantee facilities with Standard Chartered Bank ("SCB") and MBE Mineral Technologies Pte Limited ("MBE").

New Facilities

The Company will now have access to the following facilities that replace existing borrowing and guarantee facilities from Lloyds TSB Bank plc and Nationwide Building Society:

As part of the arrangements, the Company and certain of its subsidiaries were required to enter into security arrangements as follows:

Note 1 - The security for the SCB facilities includes (a) charges over the moveable fixed assets, inventory and receivables of Hayward Tyler Limited ("HTL") and Hayward Tyler Fluid Handling Limited ("HTFHL") and (b) the pledge of its shares in HTL and HTFHL by Hayward Tyler Group Limited.

Note 2 - The security relating to the MBE term loans has been provided directly to MBE's lender to secure a US$15 million term loan from Axis Bank. This security includes (a) a standard security over the freehold property at 41-43 Glenburn Road, East Kilbride, Scotland and an assignment of related rental income owned by Redglade Associates Limited, (b) a mortgage over the freehold property at 1 Kimpton Road, Luton, England and an assignment of related rental income owned by Redglade Investments Limited and (c) a pledge of shares in Hayward Tyler Inc, the Company's US subsidiary by its parent company Hayward Tyler Holding Inc.

The new facilities are from lenders that are more appropriate for the export markets of China and India. The facilities, which extend debt maturity and increase the amount of borrowing facilities available, will provide a much stronger platform for the Company and its subsidiary, Hayward Tyler Group Ltd. The Company is also expected to benefit from the removal of the financial uncertainty which has impacted on the ability of Hayward Tyler to trade on reasonable terms with certain of its suppliers over the last 18 months. In addition to the above facilities, the Company is also in the process of moving its UK clearing arrangements to HSBC.

Trading Update

During the year to date, the Company has continued to make steady progress on new contract wins, new orders for the year to the end of July 2012 were £20.3 million against £18.8 million for the equivalent period last year. Significant wins include Hayward Tyler's largest ever oil and gas related contract valued at over £2.7 million for a range of sea-water lift and firewater pumps for the Hebron field off the coast of Newfoundland. Hayward Tyler has also won a further syngas project in South Korea valued at US$1.9 million (£1.2 million). This project is only the second of its type worldwide, Hayward Tyler having already won and successfully delivered the first to GE.

The Board also expects that the restructuring of Hayward Tyler's Luton operations and closure of the London office, which were completed in the first half of 2012, will achieve annualised cost savings of around £1.0 million a year.

In addition, the Directors are encouraged that the Group is now beginning to see the first benefits of its partnership with McNally Bharat taking shape with the development of a far more robust supply chain through MBE Cologne, which the Board believes will underpin the Company's on-going development over the next 18 months.

However, historic supply chain issues combined with the financial uncertainty surrounding the business prior to the completion of the new financing, lead the Directors to believe that lower profit levels will be achieved in the first half of the year (when compared to 2011) from revenue broadly in line with that for the first half of 2011.

Directorate Change

As indicated in the announcement of 10 April 2012, with the completion of the re-banking process, non-executive directors Ron Emerson and Chris Every will now stand down from the Board with immediate effect.

John May, Chairman of Specialist Energy Group plc, commented:

"I would like to thank both Ron Emerson and Chris Every for their support as non-executive directors over the past few years and particularly during the re-banking process. With the financial uncertainties now removed and strong operational relations developing with MBE Cologne, we look forward to further progressing the relationship with McNally Bharat, the first benefits of which are already beginning to take shape."

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