Further re Director's Loan

19 November 2009

                            Pipehawk plc
                    ("Pipehawk" or the "Company")

                     Further re: Director's loan

On 8 October 2009 the Company announced the terms of a subscription
to raise £120,000 at 8p per share ("Subscription Price") and the
details of a loan for £100,000 provided by Gordon Watt, Chairman of
the Company. The loan was unsecured and interest free. As set out in
that announcement, Mr Watt confirmed that he intended to convert the
loan into ordinary shares in the Company ("Ordinary Shares") at the
Subscription Price or the middle-market closing price of the
Company's Ordinary Shares on the day prior to conversion, if greater,
following the announcement of the Company's results for the financial
year ended 30 June 2009.

The Company's results for the financial year ended 30 June 2009 were
announced on 16 November 2009 and the closing middle-market price on
17 November 2009 was 6.5p. Mr Watt has, therefore, converted his loan
of £100,000 into 1,250,000 Ordinary Shares at the Subscription
Price.

Application will be made to the London Stock Exchange for admission
to trading on the AIM market of 1,250,000 Ordinary Shares. It is
expected that Admission will become effective and dealings in such
shares will commence on 25 November 2009. Following admission of the
new Ordinary Shares to trading on AIM the Company will have
29,687,181 Ordinary Shares in issue.

Following the issue of the new Ordinary Shares, Mr Watt will hold
4,896,500 Ordinary Shares, equivalent to 16.49 per cent. of the
issued voting share capital of the Company.

FURTHER ENQUIRIES


+-------------------------------------------------------+
| PipeHawk Plc                          | 01420 590 990 |
| Gordon Watt (Chairman)                |               |
|                                       |               |
|---------------------------------------+---------------|
| Merchant John East Securities Limited | 020 7628 2200 |
| David Worlidge                        |               |
| Simon Clements                        |               |
|                                       |               |
+-------------------------------------------------------+

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