RNS Number:6920R
MITIE Group PLC
05 November 2003


                           MITIE Group PLC ("MITIE")

                     Acquisition of Executive Holdings Ltd

Further Consolidation in Security

MITIE is pleased to announce that it has acquired 100% of the issued share
capital of Executive Holdings Ltd ("Executive"), a security and cleaning
business, for #9.99 million.

Security is an increasingly important part of MITIE's bundled service offering.
Executive has an established client base across the South East of England and
when combined with the existing capability in the centre of London, MITIE will
have a strong integrated presence in its largest regional market that will
provide a solid platform for a national security business.

The acquisition of Executive also gives MITIE the opportunity to accelerate the
development of its niche businesses within the support services market in areas
which include the transport and healthcare sectors which Executive currently
services through its cleaning operation.

MITIE is particularly impressed with the calibre of the management in Executive
and Jeff Flanagan, the Chief Executive of Executive, has accepted the position
of Managing Director of MITIE's enlarged Security discipline.  David Noel,
currently Managing Director of Executive's Cleaning operation, will become Sales
Director for MITIE Cleaning.

The acquisition will enable MITIE to reduce its accommodation and administrative
cost base in both the Security and Cleaning disciplines.  There will be limited
synergy benefit in this financial year, but targeted cost savings of #1.25
million are expected in 2004/2005.

Executive's unaudited accounts for the 52 weeks to 6 October 2003 show turnover
of #39.27 million and operating profit before amortisation of #638,000.

The last audited accounts for Executive are for the 32 weeks ending 6 October
2002 and show:

Turnover                                                #23.81 million

Operating profit before amortisation                    #184,000

Loss before tax                                         #923,000

Net assets                                              #3.75 million

Included in the loss before tax is an amount of #660,000 for the goodwill
impairment of a business in which Executive no longer has an interest.  Included
in the net assets is an amount of #5.58 million of goodwill.

Ian Stewart, Chief Executive of MITIE, commented, "This acquisition represents
an opportunity for MITIE to accelerate the implementation of our strategy in
security and provide our customers with the services they are demanding. We are
making good progress towards our strategic aim of establishing a national
security business and we will be able to build on Executive's strength in the
transport and healthcare markets."

5 November 2003

For further information, contact;


Ian Stewart, Chief Executive         Tel:  01934 862006   Mob: 07979 701002

Ruby McGregor-Smith, FD              Tel:  01934 862006   Mob: 07979 701004

John Telling, Corporate Affairs      Tel:  020 7407 0094  Mob: 07979 701006

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

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