Update

Johnson Service Group PLC 28 December 2007 28 December 2007 JOHNSON SERVICE GROUP PLC UPDATE Banking The Board is pleased to announce that it has successfully agreed with its banking group a waiver of its year end covenant test. In exchange for the waiver the Company has granted the Banks security over its assets, agreed to pay the Banks a fee and incur increased interest costs. The Company has also granted security over its assets to its pension funds. The Company is required to negotiate with the Banks a longer term banking solution before 30th April 2008. 2008 profit before tax The Board expects to incur additional exceptional restructuring costs in both 2007 and 2008 as well as higher interest costs in 2008 as a result of its amended banking arrangements. Whilst trading overall remains in line with expectations and the Board continues to believe that expected pre-exceptional operating profits for 2008 will be at a broadly similar level to 2007, the higher interest costs will result in lower than expected profit before tax for 2008. Board changes The Board also announces that Charles Skinner, Chief Executive, has today resigned from the Board following agreement with the Board that a different set of skills are required in the Company's current situation. The Board wishes to thank Charles for all his efforts in the recent difficult circumstances. John Talbot, who has been working with the Company as a consultant during December this year, has been appointed as interim Chief Executive Officer and he joins the Board with immediate effect. John has over 25 years turnaround and restructuring experience and has considerable experience assisting companies in difficult situations. He was formerly Global Head of Arthur Andersen's Corporate Finance and Corporate Recovery practice until 1999. John is now a Senior Partner at Kroll Talbot Hughes, a leading European turnaround and restructuring advisory firm. The Board is confident that this experience will prove invaluable in the development and implementation of a recovery plan for the Group. John Talbot was a Non-Executive Director of IWP International plc from January to March 2006. The Board confirms that there is no other information to be disclosed under the requirements of Listing Rule 9.6.13 in relation to his appointment Enquiries Johnson Service Group PLC Simon Sherrard, Chairman 020 7796 4133 Hudson Sandler Wendy Baker 020 7796 4133 This information is provided by RNS The company news service from the London Stock Exchange
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