Moscow De-Icing contract

RNS Number:3139H
Zirax PLC
07 August 2006


Zirax plc announces $12.5 million Moscow De-Icing contract

Zirax plc ("Zirax" or "the company"), the specialty chemical company focused on
the development, production and sale of calcium chloride ("CaCl2"), is pleased
to announce that it has retained (for the 4th consecutive year) it's de-icing
contract for Moscow City Council worth $12.5 million.

The new contract, which follows on from the 2005-2006 agreement between Zirax
and Moscow City Council, extends Zirax's license to de-ice Moscow's
infrastructure up until April 2007. Moscow City Council will acquire
approximately 30,000 Metric Tonnes (MT) per annum of CaCl2 pellets and 20,000 MT
per annum of Zirax's specialist de-icing product, 'Ice Melt', which will be used
to ensure that transport links and essential services remain functional during
the winter period.

Zirax is predominantly focused on the production of calcium chloride pellets for
two major markets: high performance de-icing and the oilfield services market.
To meet the growing demand for CaCl2, the company signed a supply and licensing
agreement in June 2006 with Solvay, the international chemical and
pharmaceutical group to develop a new CaCl2 plant in Rosignano, Italy. In
addition, the planned $5m investment over the next eight months into Zirax's
production plant in Volgograd will upgrade the existing CaCl2 and IceMelt
facility. Together with the Solvay agreement this will increase Zirax's total
capacity by 100%.

Commenting on this announcement, Valery Andosov, Chief Executive of Zirax said:
"I am delighted that Zirax will continue to work with Moscow City Council in
order to service and maintain the city's infrastructure during the autumn and
winter periods. This is also an exciting time for Zirax as we look to double
capacity and develop the oilfield service markets of North and West Africa and
the Middle East.

About Zirax

Zirax is a specialty chemical company manufacturing and supplying oilfield
process chemicals and de-icing solutions to a global customer base. Zirax is
quoted on the AIM market of the London Stock Exchange (ticker: ZRX), is
headquartered in London and has a manufacturing facility in Volgograd, Southern
Russia. More information is available at www.zirax.com.


                                      Ends

Enquiries:

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

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


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

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