Award of Grant

21 February 2007

                                 PipeHawk Plc                                  

                         ("PipeHawk"or "the Company")                          

                                Award of Grant                                 

The Company announces that it, together with nine other pan-European partner
organisations, have, in aggregate, been granted €2.15 million of funding from
the EU's "Global Change and Ecosystems" budget to develop an advanced Ground
Penetrating Imaging Radar ("GPIR") technology for the location of utility
pipelines and assessment of the structural integrity of watermains.

The aim of the project is to develop GPIR equipment which, in addition to
possessing enhanced pipe detection capabilities, is able to detect leaks and
damaged pipes and producing images of the damage. The total projected cost of
the project is €3.3 million.

The project is anticipated to be completed over a three year period and
PipeHawk expects to generate revenues of approximately €162,000 over that
period.

PipeHawk's principal role will be to act on the Steering Committee with
particular responsibility for the implementation of the GPIR equipment into
commercial applications.

Gordon Watt, Chairman of PipeHawk, commented;

"Statistics show that water companies in Europe are losing as much as 40 per
cent. of their water through pipe leakage. There are approximately 2 million km
of water pipelines in the EU and there are on average 25 pipe breaks per 100 km
per annum or 500,000 pipe breaks annually.

This is an exciting project which we believe is the first major GPR innovation
this century."

Pipehawk Plc                                                     01420 590990
                                                                             
Gordon Watt (Chairman)                                                       
                                                                             
John East & Partners Limited                                    020 7628 2200
                                                                             
Simon Clements