Heads of Agreement signed

    PHSC plc
                                      ("PHSC" or the "Group")
                                                 
                  Acquisition of In-House The Hygiene Management Company Limited

PHSC  plc,  the Aylesford-based provider of health, safety and environmental services to corporate
and public sector clients, is pleased to announce the signature of Heads of Agreement relating  to
the  acquisition  of  the entire issued share capital of In-House The Hygiene  Management  Company
Limited  (IH) The purchase price will be £300,000 plus the opportunity of a bonus payment  subject
to the level of future profits. In addition, assets will be acquired at fair valuation.

The acquisition will be funded entirely from existing cash reserves, as follows:

    *       £200,000 on completion of the acquisition;
    *       £50,000 on the first anniversary of completion; and
    *       £50,000 on the second anniversary of completion.

Both  anniversary  payments  are subject to an uplift equal to 50% of  any  pre-tax  profit  above
£100,000 in the preceding year.

IH  is  a well-respected and established food safety and hygiene consultancy, with many hospitals,
schools  and  hotels amongst its client base. The company also offers general  health  and  safety
consultancy and training. Turnover in the six months to 30 June 2007 was £196,000, generating pre-
tax profits of £56,000 (unaudited).

IH  will enter into a strategic partnership with our RSA Environmental Health subsidiary, and will
be managed from RSA's Midlands offices.

Further information and a comprehensive client list can be found at www.inhouse-hygiene.co.uk.

For further information, please contact:

Stephen King
PHSC plc
Tel: [phone]

Ruegg & Co Limited
Nominated Adviser
Gavin Burnell
Tel: [phone]



								
PHSC plc