Re Contract

PipeHawk PLC
23 August 2001




                   PIPEHAWK PLC AWARDED SIGNIFICANT 
                         DEVELOPMENT CONTRACT

PipeHawk plc has been notified of the award of a new development contract from
Nygas, a technical trade association for gas utilities in New York and other
associated companies in the Northeast US. The initial phase is due to commence
on September 1, 2001 and is intended to extend over a period of 12 months, with
a value of US$870,000.

The objective is to develop a low-cost hand held pipe and cable locator product
incorporating PipeHawk's ground probing radar technology to meet a proven demand
from the construction and utility industries world wide.

It is the intention of Nygas and PipeHawk that the second phase of the program
will involve a commercial partner who will assist in the final product
specification and commercial development. Discussions are already in hand with a
major US corporation in this regard.  Under such an agreement both Nygas and
PipeHawk will receive royalties from sales.

Other significant vertical markets have been identified for example, land mine,
forensic and archaeological applications for which PipeHawk has been granted the
commercialisation rights. Further developments of the initial product will be
designed to enable PipeHawk to address these and other market sectors world
wide.

Further information from the company on 01420 590990 - Contact Mike Bushell or
Blackstone Business Communications on 0207 251 2527 - Contact Tim Blackstone