Clyde Process Solutions plc - Interest Rate Swap

Clyde Process Solutions plc

(“CPS” or the “Group”)

Interest Rate Swap

Clyde Process Solutions plc (AIM: CPSP), a global provider of pneumatic conveying and air filtration solutions for process industries, is pleased to announce that new interest rate swaps have been entered into for 75 per cent. of the Group’s outstanding loans which will contribute approximately £280,000 to an expected  reduction in interest costs of £373,000 in the year to February 2011 when compared to the previous year, assuming constant exchange rates.  These new interest rate swaps will replace the present three year swaps which expire on 30 June 2010.

The swaps are a hedge against variable interest rate exposure on the loans that provided part of the MAC acquisition funding in 2007. The new interest rate swaps cover forward to the repayment dates of the loans in 2013, 2014 and 2015.  The interest cost reduction from the new interest rate swaps is effective from July 2010 and has already been factored into management expectations for the current financial year.

As previously notified, the Group will be announcing its preliminary results for the year ended 28 February 2010 on Tuesday, 25 May 2010.

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Notes to Editors

Clyde Process Solutions (“CPS”) is a global provider of pneumatic conveying and air filtration solutions for process industries.  The Group is primarily involved with the design and implementation of value-adding, energy saving and environmentally efficient solutions, which are used to handle the raw materials required to produce commodities such as metals, cement, chemicals, ethanol and foods.  The use of pneumatic conveying and air filtration technologies enables CPS’s clients to solve challenges associated with other methods of conveying, including the control of dust and material spillage and subsequent possible contamination of both operational environments and the local communities in which the manufacturing facilities are based.  The Group has an extensive, global reference list complemented by operations in Europe, North America, China, South America and South Africa, and uses its technologies to improve the operational effectiveness of their customers’ production processes.

The Group has two principal subsidiaries, which both provide a wide range of solutions utilising pneumatic conveying, air filtration, pneumatic injection and valve technologies:

•           MAC Equipment (“MAC”), headquartered in Kansas City, USA, is focused on the design, engineering and manufacturing of customised systems to customers in manufacturing environments, including food, chemicals, building products, plastics, ethanol and biodiesel industries.  MAC’s customers include PepsiCo and BASF.

•           Clyde Materials Handling (“CMH”), headquartered in Doncaster, UK, provides solutions to a global and diverse customer base which primarily operates in the metals and minerals markets.  CMH’s customers include, Codelco, Corus, Saint Gobain, Procter & Gamble and Lafarge.  Focused on the innovation, design and engineering of tailored solutions, CMH has helped generate an array of operational, economic and environmental benefits within their customers’ processes.

CPS has over 40 years of experience in the pneumatic conveying and air filtration industry, backed by a wealth of process knowledge.  The Group employs close to 500 staff throughout 10 worldwide offices to support its global customer base. 

Clyde Process Solutions (CPSP.L) listed on the AIM market of the London Stock Exchange in July 2006 and is included in both the FTSE Industrial Engineering sector and the FTSE Environmental Markets Index.

For further information, please see www.clydeprocesssolutions.com