Update

Johnson Service Group PLC 20 November 2006 20 November 2006 Johnson Service Group Plc ('Johnson' or the 'Group') Update Drycleaning On July 21st 2006, we announced that following several expressions of interest in the business and in order to extract the best value for shareholders, we would conduct a formal auction for the sale of the Drycleaning division. We have received a number of offers, however, in the Board's opinion, none of them reflected the recent trading, profitability and potential for the business. The Board of Directors believes that at the current time, it is in the best interest of shareholders for the business to continue to be run as a division of the Johnson Service Group. Since 30th June 2006, Drycleaning is trading much better than expected and is showing good growth over the corresponding period of last year. Trading update As we have previously announced, we are rolling out an ERP system into the majority of our businesses. Although this has been very satisfactory at Johnson Workplace Management, problems have emerged in our linen rental business resulting in delayed invoicing and a substantial increase in the bad debt provision. Our ERP system has also highlighted additional costs, which are being addressed. The combination of these two factors will result in profits for the year being £4 million less than expected in our linen business. Our Johnsons Apparelmaster business has traded in line with expectations. In our Corporatewear division, as previously indicated, we have won a number of contracts but one roll out is now being delayed until the first quarter of 2007. Our Facilities Management division is showing solid growth. As a consequence of the above, the continuing profit before tax of the Group for the year as a whole is now expected to be in the region of £26.0 million. Board change Stuart Graham, Group Chief Executive Officer has informed the Board that he intends to resign from the Company with effect from 30th November 2006. Simon Sherrard, Non-Executive Chairman, will take over his executive responsibilities until a successor has been appointed. Stuart Graham, Group Chief Executive Officer, said: 'Having spent more than four years with the Johnson Service Group reshaping the business, I feel it now needs a different skill set to lead the Company into the future. This has been a very difficult decision, which I have personally been considering for some time. We have a talented and dedicated management team in place running our divisions and I wish my successor and the management well in taking the Group to its next stage of development.' Simon Sherrard, Chairman, said 'Stuart joined the Johnson Service Group in June 2002 and since that time has played a fundamental role in focusing the company on business to business activities. He has recruited an excellent management team and taken the Company into areas of growth. The Board would like to thank him for his significant contribution and wish him every success in the future.' There will be a conference call for sell-side analysts at 4:30pm today. For further details please contact Alix Haysom on 020 7796 4133 or e-mail ahaysom@hudsonsandler.com For further information, please contact: Johnson Service Group PLC Simon Sherrard, Chairman Telephone 020 7796 4133 on the day Jim Wilkinson, CFO 020 7290 0390 thereafter Hudson Sandler Michael Sandler / Sandrine Gallien Telephone 020 7796 4133 This information is provided by RNS The company news service from the London Stock Exchange
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