Hardide plc

Hardide plc

May 26, 2006 02:03 ET

Hardide: Placing of Shares

LONDON, UNITED KINGDOM--(CCNMatthews - May 26, 2006) - Hardide Plc (AIM:HDD), the provider of unique surface engineering technology announces that it has conditionally raised Pounds Sterling 1.55 million (before expenses) for the Company via a placing for cash of 12,386,832 Ordinary Shares of 1 pence each ("Ordinary Shares") at 12.5 pence per share ("the Placing"). In addition, 601,650 Ordinary Shares held by Dr Yuri Zhuk, Technical Director of Hardide, and 8,598,350 Ordinary Shares held by Flintstone Management Services Limited ("FMS"), a subsidiary of Proventec PLC, have also been placed at the placing price with institutional and other investors.

The net receivable proceeds of the Placing will be used to fund the Company's continuing expansion.

Mr David Chestnutt, non-executive Chairman of Hardide, is also a director of FMS. FMS has undertaken not to dispose of any further Ordinary Shares without the permission of the Company's broker, Daniel Stewart & Co plc, before 30 November 2006.

Application has been made for the admission of the 12,386,832 Ordinary Shares subject to the Placing to be admitted to trading on AIM ("Admission"). It is expected that Admission will take place on 1 June 2006. At Admission, the Company will have 146,742,236 Ordinary Shares in issue.

Jim Murray-Smith, Chief Executive of the Company, has subscribed for 200,000 Ordinary Shares in the Placing. Following Admission, Mr Murray-Smith will have an interest in 428,000 Ordinary Shares, representing 0.27% of the issued share capital.

Following Admission, Dr Zhuk will have a residual interest in 4,364,465 Ordinary Shares, representing 2.97% of the issued share capital.

Following Admission, FMS will have a residual interest in 31,499,725 Ordinary Shares, representing 21.47% of the issued share capital.

Commenting on the Placing, Jim Murray-Smith, Chief Executive of Hardide Plc, said: "The proceeds from the Placing will enable the Company to strengthen the senior management team, underpin and accelerate expansion in the US. Initial indications from the US oil, gas and pump markets continue to suggest extremely high demand for Hardide's unique products. The opening of our new manufacturing facility in Houston is still on schedule for October 2006.

We have been particularly encouraged by the strong demand from both existing and new institutional investors and look forward to sharing Hardide's future success with them. The Board remains confident of meeting market expectations for the full year."

For further information:

Hardide plc
Jim Murray Smith, Chief Executive Tel: +44 (0) 1869 353 830
jmurray-smith@hardide.com www.hardide.com

Daniel Stewart & Company plc
Paul Shackleton, Corporate Finance Tel: +44 (0) 20 7776 6550

Media enquiries:

Chris Lane / Katherine Murphy Tel: +44 (0) 20 7398 7700
chris.lane@abchurch-group.com www.abchurch-group.com

Notes to editors

Hardide provides and applies tungsten carbide coatings to a wide range of engineering components. The Company's patented technology is unique in that it combines both abrasion and corrosion resistant properties in one coating. When applied to components, the technology is proven to offer dramatic cost savings through reduced downtime and extended component life. Customers include leading companies operating in oil and gas exploration and production, valve and pumps manufacturing and general engineering.

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