Zirax plc

("Zirax" or the "Company")

Trading update

Zirax, the AIM quoted speciality chemical company focused on the development, production and sale of oilfield process chemicals and de-icing solutions, today announces an update on current trading. 

At the time of the release of the interim results on 25 September 2009 we remained confident that demand for the Company's products was still strong, despite the difficult trading conditions experienced in the first half. In many areas of the business, particularly for de-icing products, this remains the case, although even in this sector it is not as good as we anticipated. However, Rosneft, Zirax's principal customer in the oil and gas segment, historically accounting for approximately 50% of volumes, has recently placed lower orders than previously anticipated and has now indicated that it will not be placing further orders this year.

Given this reduction in volumes we are now anticipating that sales in the second half of 2009 will only be marginally ahead of the first half and this will result in further losses being incurred for the second half. The level of losses in the second half is expected to be below those experienced in the first half and the Company remains confident that it has sufficient financial resources for its current needs.

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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