21 Jul 2006

Interserve Plc is pleased to announce that the Scheme to implement its recommended acquisition of MacLellan Group plc has now been sanctioned by the High Court and is expected to be effective upon the registration by the Registrar of Companies for England and Wales of an office copy of the Court Order confirming the reduction of capital.

In parallel with the acquisition of MacLellan, we have carried out a review of our current operational and financial reporting structure in order to maximise the full potential of the business going forward.

MacLellan's facilities management operations will, together with Interserve's existing Facilities and Industrial Services businesses form an enlarged facilities management business, operating through a single management structure and delivering integrated services across the full spectrum of public and private sector clients. This business will be headed by Bruce Melizan, Managing Director of Interserve's existing Facilities Services division, reporting to Chief Executive, Adrian Ringrose.

I am pleased to announce that I will take over as Managing Director, Interserve Industrial Services, reporting into Bruce Melizan.

As a result of organisational changes, Stewart Hagerty will be leaving Interserve to pursue interests outside of the company. Stewart joined the Group in 1999 on its acquisition of Bandt and was appointed to the Interserve parent Board in 2002.

The formation of Industrial Services in August 2000 was as a direct result of Stewart's foresight and hard work in recognising the huge potential for an integrated approach to Industrial Services, available singularly or as multi disciplined packages and tailored to the specific needs of our Industrial Clients.

As a business, to have come so far in such a short period of time is testament to Stewart's leadership – and also to the determination of everyone involved.

The MacLellan acquisition is excellent news for all Interserve as it strengthens our position in the market and offers new opportunities as the expanded Group develops.

I am delighted to be heading up this new and challenging role for our industrial clients within both Interserve and MacLellan.

Interserve Environmental Services will become part of a new division, Specialist Services, headed by Bernard Spencer, reporting to Adrian Ringrose. United Industrial Services, our newly formed industrial FM operation in Qatar, will continue to be led by John Collings but will now report through the International Division of Project Services, headed by Keith Ridgway.

MacLellan's Industrial Business will be integrated into our Industrial and access business. Dave Troth currently manages this business and will therefore join our Management Team.

I hope, like me, you will see these changes as a significant step forward for Interserve Industrial Services.

Steve Radcliffe

Managing Director – Interserve Industrial Services