Plexus Wins New Contract from Norsk Hydro

Plexus Holdings has signed a contract with Norsk Hydro Produksjon AS to supply a proprietary POS-GRIP® wellhead system for use in the Norwegian North Sea. This agreement marks the first working partnership between the companies, which Plexus hopes to build upon in the future. The immediate value of the contract is approximately £700,000, with revenues commencing in the last quarter of the company’s financial year to 30 June 2008.

Plexus will supply Norsk Hydro with POS-GRIP High Pressure/High Temperature (HP/HT) exploration rental wellhead equipment, mudline suspension equipment and service support. The Directors believe that Plexus’ equipment offers the best technical solution for exploration wells drilled from the latest generation of Jackup rigs, as it allows the blow out preventer (BOP) to remain in place for the well, providing time savings and safety benefits.

The POS-GRIP method of engineering for wellheads and connectors has many advantages in dealing with the high forces associated with the HP/HT oil and gas environments, for which there is increasing global demand due to the strong energy appetite and the need to explore for oil and gas in ever more challenging locations. With growing support from many of the oil and gas majors for Plexus’ proprietary POS-GRIP technology, the Company is ideally placed to build upon this with the aim of developing POS-GRIP wellheads as a new industry standard.

Plexus CEO Ben van Bilderbeek said, "This is a significant contract win for Plexus as it represents the first working partnership for both companies and is further corroboration of the particular suitability of our technology for the more unconventional and technically challenging offshore drilling applications. POS-GRIP provides a number of key advantages which are particularly beneficial in relation to a HP/HT rental wellhead contract, including considerable time and cost savings and enhanced safety."