Contract with BG Int.

Plexus Holdings Plc
04 September 2006


Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services

4 September 2006

                Plexus Holdings PLC ('Plexus' or 'the Company')


          Five-Year Framework Contract for the Development and Rental

     of 20,000psi X-HP/HT Wellhead Equipment with BG International Limited


Plexus Holdings PLC, the AIM-traded oil and gas engineering services business,
has agreed with BG International Ltd ('BG'), a wholly owned subsidiary of BG
Group plc, to develop and supply 20,000 psi ultra or extreme high pressure and
high temperature (X-HP/HT) exploration wellhead equipment, using the Company's
proprietary POS-GRIPTM technology. The contract, which will see BG fund the cost
of product development and qualification testing for the new metal to metal
sealing wellhead system, which contains a tubing hanger designed for 20,000 psi
service, is initially for two wells, with a value of £2.3 million. This
agreement, which is subject to completion of relevant contract terms, is part of
a five (5) year framework contract under which Plexus anticipates that further
equipment will be supplied to BG for X-HP/HT, HP/HT, and standard 10,000 psi
wells. The Directors estimate that the total revenues generated throughout the
duration of the contract may exceed £5.0 million.


BG Group plc, is a global natural gas business. Active on five continents in
over 20 countries, it operates four business segments - Exploration and
Production, LNG, Transmission and Distribution and Power. The initial two-well
drilling programme is in the Norwegian and UK sectors of the North Sea and is
due to commence mid 2007 and complete in circa 12 months


Plexus has been steadily building the reputation of its POS-GRIP technology,
which is a new method of engineering for wellheads. In HP/HT applications the
technology combines various operational benefits, which result in safety
improvements and installation time cost savings.


The POS-GRIP proprietary adjustable wellhead system is specifically designed for
jack-up rigs, where it eliminates the need to remove the well control equipment
(the blow out preventer or BOP), when landing and sealing casing, and where it
accurately manages the casing load applied at the top of the conductor casing.
The potential installation time savings derived from 'through the BOP'
technology, provides, at current rig rates, operating cost savings that can
exceed the rental cost of the system provided.


The Directors are not aware of an existing alternative technology which can
match the safety and cost saving advantages of POS-GRIP technology, and
anticipate that over time more operators will come to recognize the potential of
these systems across the pressure spectrum.


Plexus CEO Ben van Bilderbeek said: 'We are excited about the opportunity to
move Plexus' POS-GRIP technology from its current HP/HT capability into the
extreme high pressure field. The development of qualified 20,000 psi POS-GRIP
wellhead equipment, which can be safely installed without having to remove the
BOP's to set the casing, represents a significant milestone for the industry,
and will further strengthen the reputation of this unique method of engineering
in the global oil and gas market.


I believe that in the years to come friction grip and direct sealing technology
will play an important part in the search for solutions needed to successfully
drill and complete wells in extreme high pressure gas formations, such as exist
in the North Sea and the Gulf of Mexico and in many other areas of the world.'


                                  * * ENDS * *


For further information visit www.posgrip.co.uk or contact:


Ben van Bilderbeek     Plexus Holdings Plc                Tel: [phone]

Graham Stevens         Plexus Holdings Plc                Tel: [phone]

Hugo de Salis          St Brides Media & Finance Ltd      Tel: [phone]


Notes


Plexus is an established oil and gas engineering and service business based in
Aberdeen with offices in London, and Houston, and operational representation in
Egypt, Malaysia and Trinidad. Plexus has developed and patented a method of
engineering for oil and gas field wellheads and connectors, named POS-GRIPTM,
which involves deforming one tubular member against another within the elastic
range to effect gripping and sealing. Plexus was admitted to trading on AIM in
December 2005 when it raised approximately £10m of new funds.


POS-GRIP wellhead systems have been used in more than 85 oil and gas wells to
date by international customers and end users including, BG Egypt; BP Egypt, BP
Exploration,, Brunei Shell Petroleum,, Maersk Oil North Sea, ConocoPhillips, BHP
Billiton, Talisman Energy, Global Santa Fe, Gaz de France and Wintershall. In
February 2004, BP contracted to purchase POS-GRIP wellheads for the US $4.1
billion Shah Deniz, gas platform development, a major gas fields in the Caspian
Sea. Between 2005 and the end of 2008, the Directors estimate that this
relationship will generate revenues in excess of £6.5 million for the Company.


The Company's central aim on flotation was to accelerate the roll out of
POS-GRIP technology as a superior alternative to existing wellhead engineering.
The first phase was to focus on the establishment of 'HG' metal to metal seal
technology as a new standard for the industry. It was anticipated that other
manufactures, encouraged by the operators, would choose to adopt POS-GRIP
engineer principals for application in their own designs.


To date good progress has been made qualifying POS-GRIP 'HG' seals to a
standard, which the Directors believe to be unattainable with conventional
technology. The over-heated market conditions however, which cause manufactures
to produce above capacity, are not conducive to new product development, and as
a result the anticipated licensing opportunities, particularly for the lower
pressure applications, will take more time to develop.


To address these changed market conditions the Company is to increase focus on
the burgeoning growth of its extreme service capability, while at the same time
pursuing alliance discussions for mainstream market applications with a number
of key manufactures who are in a position to view the longer term potential of
its unique technology as a means to increase market share.






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