HMS GROUP successfully placed its bond issue of RUB 3 bn

Moscow, Russia – HMS Group (LSE: HMSG) today announces that the issue of ZAO “Hydromashservice”, main operational subsidiary the Group, corporate ruble bonds was successfully placed through RTS-MICEX for the total amount of RUB 3 billion. Despite the high volatility of markets, the issue of the HMS Group bonds was 1.9 times oversubscribed.

Investors placed about 30 orders totalling almost 5.9 billion rubles. According to the book-building results the coupon rate was set at 10.75% per annum (at the mid level of price-guidance of 10.50-11.00%). This has become the first successful 3-year placement among the borrowers with BB- rating by Standard and Poor’s since August 2011.

The maturity of the HMS Group bonds is 3 years with a semi-annual coupon. Coupon rate of 10.75% is set till final maturity.

Lead-Arrangers of the transaction are Renaissance Capital, Troika Dialog and VTB Capital. The main demand for the issue was from Russian banks, asset management and investment companies and some subsidiaries of foreign financial institutions.

“We are very pleased with the outcome of our bond issue. Notwithstanding high uncertainty on the market, we managed to successfully placed the whole issue and received the rates lower than it was projected. I’m glad to see investors that trust the business model of HMS Group and believe in our future.” - commented Artem Molchanov, Managing Director (CEO) of HMS Group.

The HMS Group is the leading pump manufacturer and provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. The HMS Group’s products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia’s core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. The Group reported revenues of RUB 20 billion, adjusted EBITDA of RUB 4.4 billion and profit for the period of RUB 2,9 billion for the nine months ended September 30, 2011. The HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.

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DISCLAIMER

THIS ANNOUNCEMENT IS NOT AN OFFER FOR SALE OF ANY SECURITIES IN THE UNITED STATES.  SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THE HMS GROUP HAS NOT REGISTERED AND DOES NOT INTEND TO REGISTER ANY PORTION OF ANY OFFERING IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF ANY SECURITIES IN THE UNITED STATES.

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