OREANDA-NEWS. HMS Hydraulic Machines & Systems Group Plc (the “Company”) (LSE: HMSG), the leading pump and compressor manufacturer as well as provider of flow control solutions and related services in Russia and the CIS, would like to make the following statement.

As previously announced, on 12 February 2014 the Company was served in Cyprus with an interim order of the District Court of Nicosia (the “Order”). The Order was obtained on an ex parte basis by Konstantin Grigorishin, and certain other plaintiffs, against Vladimir Matveevich Lukyanenko, his son Vladimir Vladimirovich Lukyanenko, and twelve other defendants, including the Company, certain of its shareholders and directors, and BNY (Nominees) Limited. Amongst other things, on its face the Order freezes property of Vladimir Matveevich Lukyanenko and ten other defendants, including the Company, certain of its shareholders and directors, but excluding BNY (Nominees) Limited and two other defendants, for an amount up to EUR 400 million. The Company has received advice that one effect of the Order is to restrict distributions by the Company to its shareholders and holders of the GDRs, without the permission of the court or the consent of the plaintiffs. At the same time, the Order contains an exception for certain normal business activities of HMS Hydraulic Machines & Systems Group Plc (Cyprus) in the amount of up to EUR 100,000 undertaken at reasonable value. The Order does not affect the day-to-day operations of the Company's subsidiaries.

Mr. Grigorishin's allegations, provided in support of the Order, are the result of the ongoing corporate conflict between the co-owners of Ukraine's Sumy Frunze NPO - Mr Grigorishin and his long-time business partner Igor Kuida, on the one hand, and Vladimir Vladimirovich Lukyanenko (who is also a non-executive member of the board of directors of the Company and one of its major shareholders), on the other hand.