13 August 2003

PHS Group plc

PHS ACQUIRES JOHNSON SERVICE GROUP'S WASHROOMS DIVISION

PHS Group plc ("PHS"), a leading provider of workplace services in the UK,
announces that it has acquired Johnsons Washroom Services Limited ("JWS"), the
washrooms division of Johnson Service Group PLC, for �13.7m in cash.

JWS has a very similar operating model to that of PHS's existing Washroom
business.  Its key product lines include feminine hygiene, air fresheners, soap
dispensers and vending machines.  Similar to PHS Washrooms, typical rental and
servicing contract values are less than �1,000 per annum.  Headquartered in
Bootle, Liverpool, JWS employs around 140 people and has over 9,000 customers
across the UK with little overlap with PHS's existing customers.  Following the
acquisition, the PHS washrooms division will have a customer base of over
107,000.

In the year to 28 December 2002, JWS reported turnover of �5.2m and its net
assets, including goodwill, were �8.7m.

PHS has identified a number of areas where synergies exist and cost savings
could be achieved once JWS has been integrated into the Group including
sourcing, servicing, distribution, sales and administration.  In addition it is
anticipated that margins currently achieved at PHS Washrooms and significantly
enhanced cash generation will be achievable with the JWS business.  PHS expects
that, post integration, JWS will deliver margins in line with PHS's current
Washroom margins.*

The acquisition of JWS, which is consistent with PHS's stated acquisition
criteria, follows that of Airstream for �25m announced on 2 June 2003 whose
integration into the Group is progressing well. 

Commenting on the acquisition, Peter Cohen, Chief Executive of PHS said:

"This acquisition is a very neat strategic fit to our existing Washrooms
business where we have the critical mass to achieve economies of scale and
derive real benefits from increased route density.   We believe we can achieve
significant operational and margin improvements at JWS within a relatively
short time scale."

*In the year to 31 March 2003, PHS Washrooms reported margins of 46.3% before
central costs.

Ends

For further information, please contact:

PHS Group plc                   Financial Dynamics
                                                  
Peter Cohen, Chief Executive    Harriet Keen      
                                                  
John Skidmore, Finance Director Caroline Ledosquet
                                                  
Tel: 029 2080 9101              Tel: 020 7831 3113
                                                  



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