20 Jul 2006

Interserve Plc, the services, maintenance and building group, 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 become 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, Interserve has carried out a review of its 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.  The new Facilities Services division will report alongside the existing Project Services and Equipment Services divisions.

As a result of these organisational changes, Stewart Hagerty, Managing Director of Industrial Services, is leaving the Group. The Board wishes to express its thanks to Stewart for his leadership of the Industrial Services business over the last six years and wishes him well in the future.

Commenting on the acquisition, Chief Executive Adrian Ringrose said: "The addition of MacLellan's skills, expertise and market position to Interserve's outsourcing businesses marks a step change in our development. Together with the organisational changes we are announcing today, it will position us well to capitalise further on the significant opportunities we see in each of our public, commercial and industrial markets."

Notes to editors
External reporting under the new structure announced today will come into effect in 2007. Interserve intends to provide financial disclosure for 2006 based on the existing structure in order to aid comparison with previous years.

Bruce Melizan biography
Bruce Melizan joined Interserve in 2003 and was Managing Director of Interserve Investments plc before being appointed to head Interservefm, the Group's facilities management division, in January 2006.

Bruce has been in the outsourcing industry for 13 years and has held a wide variety of roles ranging from direct delivery through to sales, marketing and general management. Previous organisations include Amey, Mowlem and Schlumberger and he has lived and worked in Indonesia, Bolivia, Canada and Trinidad & Tobago.

Bruce, born in May 1967, holds a Masters degree in Business Administration from Cranfield School of Management and a BSc in Electrical Engineering from Queen's University, Ontario, Canada.