Trading Statement

Johnson Service Group PLC 30 June 2006 30 June 2006 Johnson Service Group PLC Pre-Close Trading Statement for the Half Year to 30 June 2006 and Sale and Leaseback of Properties to raise £26.5m Johnson Service Group PLC ('Johnson'), the textile related services and facilities management Group announces the following prior to entering its close period: Trading update Overall the Group has traded satisfactorily during the first half of the year. Our Corporatewear and Facilities Management divisions are performing in line with expectations with encouraging new business wins in both areas. In addition, our Rental division continues to trade solidly and following the withdrawal of one of our major competitors from the market, has been winning new customers. Trading conditions for our Drycleaning division continue to be unpredictable. A cost reduction programme is underway at all levels of the business, which will result in margins improving in the second half of the year. With respect to the approach for our Drycleaning business, discussions are continuing and may, or may not, lead to an offer being received. As a result of the timing of new contracts and projects in our Facilities Management and Corporatewear divisions, the profitability of the Group is expected to be significantly biased towards the second half. The Board remains confident in the prospects for the Group as a whole and continues to believe that we are well placed to deliver another satisfactory outcome for the year. Sale and leaseback of properties Johnson Group Properties PLC, a wholly owned subsidiary of Johnson, has disposed of, on a sale and leaseback basis, 79 retail trading properties currently occupied by the Drycleaning division for a sum of £26.5m in cash on completion to Oceandale Investments Ltd and Oceandale Securities Ltd. The gross and net book value of the properties is £13.2m and £12.3m respectively. The operating leases, which have been signed in the name of Johnson Cleaners UK Ltd, are for 15 years with a break clause after 10 years and rent reviews after 5 years, linked to RPI. The transaction is expected to be earnings dilutive in a full year. Proceeds from the sale will be used to reduce bank borrowings. For further information, please contact: Hudson Sandler Johnson Service Group PLC Michael Sandler / Sandrine Gallien Stuart Graham, CEO Telephone: 020 7796 4133 Jim Wilkinson, CFO Telephone 020 7290 0380 For more information on the Johnson Service Group plc please view website www.johnsonplc.com This information is provided by RNS The company news service from the London Stock Exchange
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