16.03.2011

HMS Group announces repayment of RUR 3.3 billion of indebtedness

The HMS Group (LSE: HMSG), the leading pump manufacturer and provider of flow control solutions and related services in Russia and the CIS, today announces the repayment of RUR 3.3 billion of its outstanding indebtedness. The HMS Group has financed the payments out of its net proceeds from its initial public offering (the “Offering”) of global depositary receipts representing ordinary shares of the Company, as described in the Company’s prospectus dated 11 February 2011 relating to the Offering and the admission of its GDRs to the Official List of the Financial Services Authority and to trading on the London Stock Exchange’s main market on 14 February 2011.

HMS Group JSC is a leading Russian manufacturer of pumps for oil and gas, nuclear and thermal power, utilities, water and other industries; a leading manufacturer of oil and gas equipment; and a dynamically growing provider of engineering and construction services. Group assets include 6 mechanical plants (HMS Pumps JSC (until August 26, 2010 known as Livhydromash JSC); Livnynasos JSC, HMS Household Pumps JSC (until October 1, 2010 known as Bavlensky Zavod Elektrodvigatel JSC), HMS Neftemash JSC (until August 26, 2010 known as Neftemash JSC), Sumskoy Zavod Nasosenergomash JSC, and Zavod Promburvod JSC), Sibnefteavtomatika JSC (an engineering and manufacturing center), Nizhnevartovskremservice JSC (a service provider for oil industry), Tomskgazstroy JSC (a construction and fitting company), Trest Sibkomplektmontazhnalakda JSC (an engineering company), Giprotyumenneftegaz JSC and Institute Rostovsky Vodocanalproekt JSC (research institutes), a number of research and development organizations, and a unified sales company, Hydromashservice JSC.