HMS Group decreases interest rates on loans

Moscow, Russia – May 6, 2011 – HMS Group (LSE: HMSG), the leading pump manufacturer and provider of flow control solutions and related services in Russia and the CIS, today announces that the Company has managed to decrease the interest rates on a number of its significant loans. HMS Group’s average interest rate has therefore been reduced to 8.9%.

In addition, all shares previously pledged as security against debt have been unpledged. At present, HMS Group do not have any shares pledged.

HMS Group intends to continue to maintain its debt policy by raising only unsecured loans going forward” - said the Company`s First Deputy General Director & CFO Kirill Molchanov.

For further information, please visit or contact:

Alexander Rybin

Head of Capital Markets and IR

Tel: +7 (495) 730-66-12

Nozima Karimova

Head of Press Service

Tel: +7 (495) 730-66-01

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) 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.

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