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Press releases — 7 August 2003

HARDIDE RAISES £1.6 MILLION FOR SUPER HARD COATING

Hardide Ltd has raised £1.6 million to manufacture a unique, super hard coating to prolong the life of steel and cemented carbide parts and tools. The Oxfordshire-based company has developed an innovative, surface engineering technology from Moscow's Institute of Physical Chemistry that has widespread applications in the oil and gas industries, as well as in metalworking, tool manufacturing and car component businesses.

Hardide was brought to Oxford by Flintstone Technologies plc, an AIM-listed company that specialises in commercialising Soviet research. Flintstone invested £600,000 during this funding round (£1.4m since 1998), with the rest of the finance coming through Oxfordshire Investment Opportunity Network, the UK's most successful business angel network, and private investors. It leaves Hardide with a post money valuation of £5.6 million.

Jim Murray-Smith, Chief Executive Officer of Hardide said:

"This funding provides further validation of our patented technology. The Hardide coating is a mechanical engineer's dream as it combines ultra-hardness, low friction and chemical resistance. Produced by chemical vapour deposition, it doubles the component life in drilling tools on oil rigs producing massive cost savings. In some areas of application it is unique because it can coat the inside of complex shaped parts like dies, moulds and valves that cannot be coated by conventional methods. Our customer base includes international companies, such as JCB (we have coated pivot pins for their diggers), Akzo-Nobel (milling discs) and Sondex, which makes drilling equipment for oil exploration."

Mr Murray-Smith praised the Oxfordshire Investment Opportunity Network (OION):

"I am delighted that OION's investors are now re-investing in Hardide. The OION Network has played a key role in Hardide's growth. During our last funding round, in 2000, the Network helped us to secure £300,000 - the crucial finance we needed to expand our business so that we could attract this substantial VC investment. This funding is allowing Hardide to move to a large, industrial coating plant and take on more staff. From our new headquarters we are set to manufacture and sell our technology into the £7 billion UK surface engineering market and then into the broader international market place."

Alastair Cavanagh, Manager of OION, said:

"I congratulate Hardide on its successful fund raising. OION provides vital capital to fill the equity gap that exists between funding from friends and family, and then larger scale finance from VCs. Hardide is a classic example of an innovative company that has benefited from our investors' willingness to back high growth potential at the early stage when VCs cannot get involved. This is OION's seventh deal in 2003."

Hardide developed its technology in Begbroke Innovation Centre, one of 13 innovation centres run by Oxford Innovation for 250 knowledge-based businesses.

Dr David Kingham, Chief Executive of Oxford Innovation said:

"Hardide is a great success story and a ringing endorsement of our formula of providing flexible premises and services to boost the growth of start-up companies. The entrepreneurs in our innovation centres also value the access to business networks and opportunity to share experience with other CEOs facing similar challenges. At Begbroke, Hardide benefited from access to Oxford University's state of the art materials science facilities. Hardide is now ready to move on from its development phase to manufacturing and we will follow their progress with interest.

"Research shows that start-up businesses using our innovation centres have a much greater chance of success - a survival rate of 89% over the crucial first two years, which is substantially better than the UK average."

Press Release Ends

NOTES FOR EDITORS

Press enquiries to: Margaret Henry, OION PR Manager.
Tel: +44 (0)1865 811199  E-mail: Margaret Henry

  1. ABOUT OXFORDSHIRE INVESTMENT OPPORTUNITY NETWORK (OION) www.oion.co.uk

    Oxfordshire Investment Opportunity Network is Europe’s most successful technology business angel network that links investors with entrepreneurs seeking business development funds from £150,000 to £2m. OION holds monthly meetings where selected companies can pitch their proposals to OION’s members, which include over 150 active business angels, VCTs and venture capitalists.

    Many of these companies are university spin-outs and OION is uniquely positioned to help them. OION holds regular joint presentation meetings, and has strong links with, universities with a reputation for spinning out quality technology companies such as, Warwick, Oxford, Bristol, University College London and Imperial College London.

    OION is managed by Oxford Innovation Ltd (www.oxin.co.uk), the UK’s leading operator of innovation centre premises for start-up companies, and sponsored by HSBC, Grant Thornton, Laytons, Frank B Dehn & Co, NESTA and Business Link.

  2. HARDIDE LTD

    Press enquiries to: Jim Murray-Smith, Chief Executive Officer.
    Tel: +44 (0)01869 353830 Mob: +44 (0)7973 864360 Email: murray-smith@hardide.com
    Website: www.hardide.com

  3. OXFORD INNOVATION LTD

    Press enquiries to: Dr David Kingham, Chief Executive.
    Tel: +44 (0)01865 811127 Email: d.kingham@oxin.co.uk
    Website: www.oxin.co.uk