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Zirax plc

('Zirax' or the 'Company')

Zirax signs Heads of Agreement to acquire its Principal Limestone Supplier in Russia 

Zirax plc ('Zirax' or the 'Company') is pleased to announce it has signed Heads of Agreement to acquire its principal limestone supplier in Russia. The acquisition is scheduled to complete later in 2008 and will cost the Company Euro 400,000 (USD 560,000) for 25 million cubic meters of reserves.

The acquisition cost is less than Zirax's annual spend on high quality limestone, one of the key raw materials for Zirax's production of its calcium chloride based products. 

The acquisition will secure Zirax's supply of limestone; this will provide long term planning security and the ability to control costs of a principal raw material. Zirax's current production requires approximately 100,000 MT of limestone per annum; with 25 million cubic meters of proven reserves available from the quarry, this also gives Zirax the opportunity to expand the operations into other markets and revenue streams.

Valery Andosov, Zirax Chief Executive Officer said:

'We are very pleased to be making this acquisition. With a relatively small investment, it is a very important move for us to secure the supply of limestone and bring the cost under our control for future planning. As an added benefit we can explore the potential for expanding the production and revenue from the quarry site.' 

About Zirax

Zirax is a speciality chemical company manufacturing and supplying oilfield process chemicals and de-icing solutions to a global customer base. Zirax is the second largest supplier of calcium chloride pellets globally and the leading supplier in the Eastern Hemisphere. Zirax is quoted on AIM section of the London Stock Exchange (ticker: ZRX), is headquartered in London and has supply sources based in Western Europe and Russia. More information is available at http://www.zirax.com

Enquiries:

Zirax                                     Valery Andosov, CEO      T: +7 (495) 730 9559

                                Fenlon Dunphy, CFO       T: +44 (0)20 7868 1694

 

Hanson Westhouse Limited    Tim Metcalfe                   T: +44 (0)20 7601 6100

                                Richard Baty

 

Metropol (UK) Limited             Alexander Selegenev       T: +44 (0)20 7439 6880

Cardew Group                        Tim Robertson                T: +44 (0)20 7930 0777

                                David Roach    

                                Daniela Cormano

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