Corac compressed to explode !!!!!

Contract

RNS Number:2098W
Corac Group Plc
28 December 2005


For Immediate Release 28 December 2005

CORAC GROUP PLC

FIRST CONTRACT FOR INDUSTRIAL AIR FUSION COMPRESSOR



Corac Group plc ('Corac'), the intellectual property and licensing company
specialising in compressor technology, is pleased to announce the first contract
for its innovative CS Fusion machine exhibited for the first time at the
Hannover Industrial Fair earlier this year.

A major global player in the compressor industry has agreed a collaborative
contract with Corac, which will take its patented no-oil turbo compressor unit
as a front end to a waterscrew compressor that is well established in the
market. The result will be a turbo charged compressor system, which gives more
cubic metres of air and improved running efficiency for less capital expenditure
and reduced lifetime costs.

The terms of the contract and the party are subject to non-disclosure for
commercial reasons.

Commenting on this contract win, Professor Gerry Musgrave, Executive Chairman,
said:

"This is the first contract for our industrial air compressor technology and
follows the recent success announced in our Joint Industry downhole gas
compression programme. This new contract, which further validates our
technology, is expected to give access to significant and fast growing markets.
We look forward to 2006 with confidence."



For further information:


Corac Group plc 01895 813463
Prof. Gerry Musgrave, Executive Chairman

Buchanan Communications 020 7466 5000
Richard Darby, Ben Willey


NOTES TO EDITORS

Corac is an intellectual property, engineering and licensing group which holds
many patents. It focuses on high speed electrical direct drive turbo machinery
based on its unique expertise in gas bearings. Corac has created an innovative '
no oil' turbo compressor together with a unique gas seal, and is part of a joint
industry programme for the downhole gas extraction industry.

Further information on Corac is available on the internet at www.corac.co.uk


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