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, announces that the District Court of Nicosia, Cyprus yesterday discharged in full the interim order previously issued to freeze the property of the Company, its majority shareholder H.M.S. Technologies Limited, the Company's directors, and BNY (Nominees) Limited (the “Order”).

As previously announced by the Company on 14 February 2014 (<http://grouphms.com/press_center/detail.php?ID=4593>) and further clarified on 18 February 2014 (<http://grouphms.com/press_center/detail.php?ID=4596>), the Company was served with the Order in Cyprus on 12 February 2014. 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. Following prior written and oral submissions against the Order by the Company and several other defendants, the District Court of Nicosia yesterday discharged the Order in full, including in respect of the Company and its shareholders and directors.

The Company has previously indicated that Mr. Grigorishin's allegations, put forward in support of the interim 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. To read the Company's understanding of the background to this dispute, please refer to the statement by Artem V. Molchanov, the CEO of the Company, made on February 15, 2014 (see <http://grouphms.com/press_center/detail.php?ID=4595>).

The Company reiterates unequivocally that there is no legal ground for the claims and allegations against the Company made by Mr. Grigorishin and the other plaintiffs. In particular, the Company and its management have no involvement in the conflict between Mr. Grigorishin and Mr. Vladimir Vladimirovich Lukyanenko, and any suggestion to the contrary is simply false. The Company's management is acting in compliance with law in the best interests of the Company and its shareholders.

The Company will continue to defend vigorously its position in these ongoing proceedings and will make further announcements regarding material developments in these proceedings.