Acquisition(s)

PHSC plc                                    

                  Acquisition of Inspection Services (UK) Ltd                  

PHSC plc, the Aylesford-based provider of health, safety and environmental
services to corporate and public sector clients, is pleased to announce the
successful completion of the purchase of the entire share capital of Inspection
Services (UK) Ltd.

Inspection Services (UK) Ltd is a specialist in the examination of plant and
equipment such as lifts and compressors. They offer inspection and
certification services throughout the UK, enabling businesses to comply with
statutory and non-statutory obligations. Originally formed in 1992, the company
derives much of its work from a network of insurance brokers and enjoys a very
high level of repeat business. In their last financial year, Inspection
Services UK Ltd recorded pre-tax profits of £40,000 on revenues of £221,000.

A consideration of £180,000 has been paid in cash on completion for the
goodwill of the business. In addition, approximately £2,000 of non-cash assets
will be purchased at fair value and cash assets will be purchased at par.
Subject to the new subsidiary achieving pre-tax profits of not less than £
60,000 in the twelve months following acquisition, a further payment of £25,000
will become due on the first anniversary. All the above payments are funded
entirely from PHSC plc's current cash reserves.

Inspection Services (UK) Ltd will operate from PHSC's Aylesford premises.

For further information, please contact:

Stephen King

PHSC plc

Tel: [phone]

Ruegg & Co Limited

Nominated Adviser

Gavin Burnell

Tel: [phone]