Litigation Settlement

23 December 2010 PipeHawk Plc ("PipeHawk" or the "Company") Settlement of litigation The Company announces that pursuant ongoing claims brought by it and QM Systems Limited ("QM Systems"), a wholly owned subsidiary of the Company, against a third party, it, together with QM Systems, has now entered into a settlement agreement (the "Agreement") in respect of the claims.   Under the Agreement, the third party has agreed to pay to the Company and QM Systems an aggregate sum of $975,000 ($850,000 net cash to the Company after payment of unpaid costs and $700,000 net of total costs incurred) by 31 December 2010 in consideration for the full release and discharge of all claims against it. Following this settlement, the Company has no outstanding litigation. Enquiries: PipeHawk Plc Gordon Watt (Chairman) 01252 338 959 Merchant Securities Limited David Worlidge 020 7628 2200 Simon Clements This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Pipehawk PLC via Thomson Reuters ONE [HUG#1475368]