Subscription and Director's Loan

8 October 2009

                            PipeHawk Plc
                    ("Pipehawk" or the "Company")

         Subscription to raise £120,000 and Director's loan

The Company  announces  that it  has  raised  £120,000 by  way  of  a
subscription of  1,500,000 new  ordinary shares  ("Ordinary  Shares")
("the  Subscription  Shares")  at  8p  per  Subscription  Share  (the
"Subscription Price") with existing shareholders and other  investors
("the Subscription"). The Subscription is conditional on admission to
trading on AIM ("Admission").

In addition, Gordon  Watt, Chairman  of the Company,  has provided  a
loan of £100,000. Mr Watt intends  to convert the loan into  Ordinary
Shares at the Subscription Price  or the mid-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 Subscription
PipeHawk intends to use the proceeds of the Subscription for  working
capital generally.

The Subscription  is  conditional upon  Admission.  The  Subscription
Shares, when issued and fully paid, will rank equally in all respects
with  the  Ordinary  Shares,  including  the  right  to  receive  all
dividends and  other  distributions  declared,  made  or  paid  after
Admission.

Application has  been  made to  the  London Stock  Exchange  for  the
admission to trading on the AIM market of 1,500,000 Ordinary Shares.
It is expected that Admission  will become effective and dealings  in
such shares will commence on 16 October 2009.

Following the admission of  the above shares,  the Company will  have
28,437,181 Ordinary Shares in issue.

Related party transaction
Gordon Watt, Chairman of the Company, has provided a loan of £100,000
to the Company. The loan is unsecured and interest free.

Mr Watt has confirmed  that it is his  intention to convert the  loan
into Ordinary  Shares at  the Subscription  Price or  the  mid-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  Directors'
anticipate that the results will be announced during November 2009.

The Directors,  other than  Gordon Watt,  consider, having  consulted
with the Company's nominated adviser, that the terms of the loan  and
its conversion  into  new Ordinary  Shares  are fair  and  reasonable
insofar as the Company's shareholders are concerned.

A further announcement relating to the conversion of the loan will be
made in due course.

Enquiries:

PipeHawk Plc
Gordon Watt
(Chairman)
                      01420 590 990

John East & Partners Limited, a subsidiary of Merchant Securities PLC
David Worlidge
Simon
Clements
  020 7628 2200

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