Trading Statement

Hardide PLC 31 July 2006 Press Release 31 July 2006 Hardide plc ('Hardide' or the 'Company') Trading Update Hardide plc (AIM:HDD), the provider of unique surface engineering technology, announces the following trading update. The current financial year ended 30 September 2006 is likely to produce results below current market expectations. The Company is, however, expecting to report turnover significantly in excess of last year. The expected shortage in revenue and increase in loss are attributable to two factors: • One of Hardide's major customers has recently been reducing inventory and this has resulted in lower than expected sales. Nonetheless, Hardide remains the specified supplier to this customer and accordingly the Company expects orders to resume previous levels once the customer's inventory has stabilised in the near future. • Hardide has experienced a longer conversion time for customers expressing intent to purchase the Company's product. This slow-down is mainly attributed to high productivity at Hardide's major customers and has subsequently led to a slow-down in field-testing. Importantly, field-testing is still yielding the historic impressive results with a majority of customers opting to use Hardide's technology, albeit taking more time to fully incorporate Hardide's coating. Progress at Hardide's new manufacturing facility in Houston, Texas, is progressing ahead of expectations with the facility on course to be open for business on 1 September 2006, a month earlier than previously estimated. The Company is extremely optimistic about the prospects for this facility and talks are progressing with a number of potential significant customers. Owing to anticipated high demand for its product from both new and existing customers, the Company has taken the opportunity to enlarge the premises in Bicester, Oxford, to accommodate post finishing and streamlining facilities. To accommodate these new facilities, Hardide is leasing an additional space of 4,000 sq. ft. Hardide's recent exhibition at the Farnborough Air Show has produced several high level enquiries from large multinational corporations and has enhanced the Company's reputation for the provision of leading surface engineering technologies. Although in early stages, the Company is confident that this interest will lead to future orders. Commenting on the announcement, Jim Murray-Smith, Chief Executive of Hardide, said: 'Although it is frustrating to miss our targets for the year ended 31 September 2006, I am nonetheless encouraged by current developments at Hardide. It should be noted that any shortfall in revenues is attributable to minor delays in the field-testing of our products by certain customers and the decision by one of our major customers to not hold inventory at historic levels. Neither of these factors will affect Hardide's profitably on an on-going basis and the Company's future still looks very promising. 'I am pleased to report that the manufacturing facility in Houston is progressing ahead of schedule and recent discussion with potential customers further confirms our belief that demand for our product in this region will be particularly strong. The Company also received a good reception at the Farnborough air show and I am confident that this not only boosted our presence within the industry but will also ultimately lead to further orders from the aerospace sector. 'I look forward to updating shareholders on progress in our preliminary results for the year to 30 September 2006 in December.' - Ends - For further information: Hardide plc Jim Murray Smith, Chief Executive Tel: +44 (0) 1869 353 830 jmurray-smith@hardide.com www.hardide.com Daniel Stewart & Company plc Paul Shackleton, Corporate Finance Tel: +44 (0) 207 776 6550 www.danielstewart.co.uk Media enquiries: Abchurch Chris Lane / Laura Riascos de Castro Tel: +44 (0) 20 7398 7700 chris.lane@abchurch-group.com www.abchurch-group.com This information is provided by RNS The company news service from the London Stock Exchange

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Hardide (HDD)
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