RNS Number:6328O
Johnson Service Group PLC
13 August 2003

13 August 2003

                           Johnson Service Group PLC
                    Disposal of Johnsons Washroom Services



Johnson Service Group PLC ("Johnson") announces that it has disposed of the
business and specified assets of Johnsons Washroom Services Limited ("JWS") to
PHS Group plc ("PHS") for a consideration of #13.7 million in cash, less a
retention of #0.5 million to reflect the anticipated level of working capital
and other adjustments at completion. The proceeds from this disposal will be
used to reduce borrowings.



JWS, which operates Johnson's washroom services business in Great Britain, has
grown organically and by acquisition from its inception.



Turnover and loss before tax of JWS in 2002 were #5.2 million and #0.8 million
respectively and net assets including goodwill at December 2002, which are the
subject of the transaction, were #8.7 million.



The Board concluded that, although growth is achievable in this business, it
will take considerable time and investment to reach the critical mass required
to maximise profitability.  The disposal of JWS enables the Group to concentrate
its resources on its present and primary activities, which have been
comprehensively reviewed by the new Chief Executive, Stuart Graham, and on the
future development of the Group.



On 11 August 2003 the Group disposed of Connacht Court Group Limited.  The total
proceeds from the disposal of Connacht Court Group and JWS amount to over #27
million.



Johnson's results for the first half of 2003 are due to be announced on Friday
19 September 2003.



Commenting on the disposal, Stuart Graham, CEO of Johnson said:  "Washroom
Services is a high growth area for companies who have pure focus, a strong
existing market share and resources.  We were late entrants to this market and
though well managed latterly the business only reached operational breakeven in
August 2002.  The double digit margin expectation for December 2003 would have
required disproportionate effort with significant cash to sustain. Washroom
Services would have continued to be small in size relative to the Group's main
activities.



"My comprehensive review of the business completed during the Spring allowed for
close analysis of all our companies.  This in turn led to these disposal
decisions that will benefit our Group in the medium and long term which are the
natural extension of the short term actions already seen and taken this year."




Notes to Editors:



Johnson is the UK's market leader in workwear textile rental and the nation's
leading retail drycleaner.  Other principal activities include the manufacture
and sourcing of garments.



Johnsons Cleaners, the drycleaning business, has approximately 500 units
throughout Britain with a relatively small presence in Greater London and the
South East of England.

The acquisition by Johnson of Jeeves of Belgravia "London's Finest Dry Cleaners"
was announced on 12 May 2003.



On 11 August 2003 the Group disposed of Connacht Court Group Limited, its
textile rental business in the Republic of Ireland.




Enquiries        Johnson Service Group PLC

                 Stuart Graham  CEO                      Tel. 0151 933 6161
                 Mike Sutton CFO


                 Hudson Sandler
                 Wendy Baker                             Tel: 020 7796 4133




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