17 May 2006

At today's Annual General Meeting of Interserve Plc, the services, maintenance and building group, Lord Blackwell, Chairman, said:

"At this, my first Interserve Annual General Meeting, I am pleased to report that the Group continues to make good progress and that overall trading remains healthy.

"Facilities Services and Project Services each continue to perform well, with further momentum and growth being created through winning new business and in growing existing client relationships. Equipment Services has also had an encouraging start following last year's record performance. Industrial Services' performance is, as previously highlighted, being adversely impacted in the short-term as we continue to reposition the business.

"The Board believes that the recommended acquisition of MacLellan Group Plc will add further impetus to our activities in the highly attractive UK outsourcing market by extending our market reach and generating further long-term client development opportunities."