Acquisition

RNS Number:1104M
Zirax PLC
21 January 2008

                                                                 21 January 2008

   Zirax plc announces the acquisition of Solith Anlagenbau und Service GmbH

Zirax plc ("Zirax" or the "Company"), the AIM quoted speciality chemical company
focused on the development, production and sale of oilfield process chemicals
and de-icing solutions, is pleased to announce the acquisition of Solith
Anlagenbau und Service GmbH ("Solith").

Solith, located in Austria, specialises in the production and distribution of
value added de-icing products, including calcium chloride derivative "Brine C",
which is used for motorway de-icing maintenance. Solith is also developing other
products, which Zirax views as having significant growth potential, and believes
that the acquisition will provide the Company with a platform to expand its
footprint throughout the de-icing markets of Central and Western Europe.

Zirax believes there is significant scope and potential for more effective and
environmentally friendly de-icing and road maintenance technologies in this
market. The Company intends introducing its own already proven de-icing products
and technologies in the near future. Zirax has shown the benefit of using value
added de-icers in the extremes of the Russian and particularly the Moscow winter
and believe Solith will be a good base from which to enter the European market,
being progressive and forward thinking in its approach to safety and the
environment.

During the 12 months to 31 March 2007, Solith recorded a loss of Euro147,000 and
had a negative Net Asset Value of Euro111,000.

The maximum consideration payable by Zirax is Euro3.7m, to be satisfied by a cash
payment of Euro200,000 on completion, and the balance of up to Euro3.5m, payable via a
two-tier performance related earn out arrangement for the sale of product in
Austria over a maximum period of six years. The total consideration will be
funded out of Zirax's cash reserves, and as part of the deal Zirax will invest
approximately Euro290,000 in Solith and acquire Euro1m worth of bank borrowings.

The Company continues to seek out other acquisition opportunities in its chosen
market segments.

Commenting on the acquisition, Valery Andosov, Chief Executive of Zirax said:
"I am delighted with the acquisition of Solith, which is in line with our growth
strategy to provide a platform for expansion throughout Central and Western
Europe, whilst developing other products with significant earnings potential.
This acquisition is another source of future growth, in addition to the
completed expansion of our existing facilities in, Russia and the opening of a
new plant in Italy".

Commenting on the acquisition, Matthias Durst, Managing Director of Solith said:
"We are very excited with the acquisition by Zirax, an experienced and respected
company in the de-icing market. This is going to give us the ability to widen
our business and grow it much faster than we could otherwise have done. There is
a lot of potential and opportunity initially within the Austrian market, but
even more as we aim to grow more widely within Europe."

About Zirax
Zirax is a speciality chemical company manufacturing and supplying oilfield
process chemicals and de-icing solutions to a global customer base. Zirax is the
second largest supplier of calcium chloride pellets globally and the leading
supplier in the Eastern Hemisphere. Zirax is quoted on AIM of the London Stock
Exchange (ticker: ZRX), is headquartered in London and has supply sources based
in Western Europe and Russia. More information is available at http://
www.zirax.com

                                      Ends

Enquiries:

Zirax                         Valery Andosov, CEO        T: +7 (495) 730 9559
                              Fenlon Dunphy, CFO         T: +44 (0)20 7868 1694

Hanson Westhouse Limited      Tim Metcalfe               T: +44 (0)20 7601 6100
                              Richard Baty

Metropol (UK) Limited         Alexander Selegenev        T: +44 (0)20 7439 6880

Cardew Group                  Tim Robertson              T: +44 (0)20 7930 0777
                              David Roach
                              Daniela Cormano



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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