Trading Update

15 November 2012

Hydrogen Group plc

("Hydrogen" or the "Group")

Trading update

Hydrogen provides the following update on trading for the year ending 31 December 2012.

Over recent years Hydrogen's investment in its strategy to diversify the business into new sectors and geographies has delivered good growth and returns, and the Group delivered a strong performance in the first half of the year despite difficult market conditions. However, continuing investment in the second half, in-line with this strategy, is taking longer than anticipated to reach desired levels of productivity and revenue.

The impact of this has been compounded by the continuing difficult macroeconomic environment, which has meant that trading during what is traditionally the Group's stronger period in the year, from the end of the summer to the end of November, is anticipated to be below the Board's expectations.

As a result, the Directors believe that, whilst the Group will still produce low single digit percentage growth in net fee income for the year ending 31 December 2012 compared to the prior year, profits will be significantly below current market expectations.

Cash collection and balance sheet remain strong and the Group's net debt is expected to remain at similar levels to 31 December 2011.

Whilst visibility remains poor, Hydrogen remains focused on its strategy of developing the Group's practices and investing in markets where it sees potential for growth, whilst continuing to manage the cost base. The Board is confident that as markets improve, with its strong infrastructure, broader platform of practices and international reach, Hydrogen is well placed for future growth.

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