25 Aug 2006

Following the announcement of a review of accounting mis-statements in its Industrial Services division, Interserve is postponing the announcement of its interim results in order to allow time to verify the adjustments needed.

Since the announcement on 14th August, the independent forensic review established by the audit committee, with the assistance of Linklaters and KPMG, has made significant progress in its investigation. Whilst the Board continues to expect the substantial majority of the adjustment to net assets to be reflected as a prior year adjustment, it has become clear that the full analysis of the accounting mis-statements and their allocation across different accounting periods is a complex and time consuming task since these issues have persisted in the division for a period of five years or more. In these circumstances the Board has decided to reschedule the results announcement planned for 4th September.  A new date will be announced in due course, expected to be around the end of September.