JSG Johnson Service Group Plc

RNS No 5566e
JOHNSON SERVICE GROUP PLC
20th July 1998

                           JOHNSON SERVICE GROUP PLC
                  ACQUISITION OF CONNACHT COURT GROUP LIMITED

Johnson Service Group PLC, which operates Apparelmaster, Britain's third
largest workwear rental provider, and Johnsons, Britain's largest drycleaning
chain, announces today the acquisition of the whole of the issued share
capital of Connacht Court Group Ltd (CCG), Ireland's largest textile rental
company, for IR#28.25m (#24.22m sterling) in cash payable from existing
resources on completion.  In addition CCG's debt of approximately IR#5.6m will
be assumed.  CCG's headquarters are in Galway.  It has textile rental plants
in Galway, Dublin and Belfast, and specialist cleanroom facilities in Galway,
Spiddal and Dublin.

CCG provides a range of textile based services to the hospitality, catering,
industrial and healthcare markets, all of which will supplement the Group's
existing British textile rental business.  It manages its operations through
three principal divisions:

1.   Linen Supply of Ireland ('LSI') provides linen to the hospitality and
     healthcare markets, and workwear, washroom and dust mat services to
     industrial and commercial customers in the Republic of Ireland.  LSI's
     Healthcare division supplies bed linen and sterile surgical packs
     (surgical wear and draping) to the healthcare sector in the Republic of
     Ireland.

2.   CCG's Micronclean division provides workwear rental services to cleanroom
     manufacturing and assembly environments in the electronics, medical and
     pharmaceutical industries in both the Republic of Ireland and Northern
     Ireland.  The Micronclean division is based in Spiddal, 10 miles outside
     Galway.

3.   CCG's Belfast division, trading as 'Lilliput', supplies linen, sterile
     surgical packs, workwear, washroom and dust mat rental services to
     industrial, commercial and healthcare customers in Northern Ireland.

CCG's audited accounts for the year ended 31 October 1997 reported turnover
and profit before tax of IR#25.2m and IR#107,000 respectively.  Operating
profit for the same period was IR#524,000.  Profitability at CCG in 1996 and
1997 was held back by a number of issues which have been satisfactorily
resolved.  In the current year profitability has improved significantly and is
also ahead of budget.  Furthermore, three of the senior directors, who were
also significant family shareholders of CCG, have left on completion.  The
transaction is expected to be earnings enhancing in the first full year of
acquisition both before and after the amortisation of goodwill.

CCG's audited accounts at 31 October 1997 showed net tangible assets of
IR#9.8m and these are estimated to be IR#10.7m at completion.  After
accounting for costs associated with the acquisition, goodwill of IR#18.4m
will arise.  In
accordance with FRS10 and the Group's accounting policy, the goodwill will be
capitalised and amortised over a period of 20 years.

Johnson's gearing immediately after completion is estimated to be 49%.

Mr T Joyce, CCG's Managing Director, who has a wealth of experience and
knowledge of the industry, will be staying with the company and will be
supported by his existing very capable management team.

Commenting today, Richard Zerny, Chief Executive of Johnson Service Group PLC,
said "this acquisition gives us a strong presence in the textile rental market
in both the Republic of Ireland and Northern Ireland.  We believe that our
experience and operating techniques will bring significant benefits to CCG's
business, especially in the workwear sector.  All of CCG's plants have
considerable scope for expansion, although some re-organisation cost is likely
to be incurred mainly during 1999".

Johnson Service Group's interim results, for the half year ending 27 June, are
expected to be announced on 7 August.

Note: -  The spot rate of exchange on 17 July 1998 was #1 = IR#1.1665
Enquiries:     Hudson Sandler Limited
               Michael Sandler / Wendy Baker
               Telephone:  0171 796 4133

END

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