Re Contract

Worthington Nicholls Group plc 15 June 2007 RNS Release 15 June 2007 Worthington Nicholls Group plc secures contract with IHG First customer contract to comply with new EU legislation Worthington Nicholls Group plc (AIM: WNG) ('Worthington Nicholls'), one of the UK's largest installers of air conditioning, heating, ventilation and chilled water systems, has signed a multi million pound contract for nine years through to June 2016 with IHG Managed Services, part of the Intercontinental Hotels Group ('IHG'). In the context of recent Company contract announcements, this is one of the most significant. The maintenance contract secured by Worthington Nicholls will cover the maintenance and extended warranty of the air conditioning units in guest bedrooms, public areas, back of house and Spirit Health Clubs across the UK and Ireland estate. The agreement follows an initial extended warranty and maintenance contract awarded to WNG in 2003 for four years as part of the UK and Ireland air conditioning installation roll-out. The contract Worthington Nicholls has secured will ensure IHG has regulatory compliance with new F Gas legislation, part of wider EU environmental legislation, which comes into force on 4 July 2007 and will involve the monitoring of all HCFC refrigerant compliance systems. As part of the legislation, R22 refrigerants will be banned from 1 January 2015 and the new contract will take IHG through the R22 phase out period. Mark Worthington, Chief Executive of Worthington Nicholls, said: 'We are very pleased to have secured a large contract and at a significant stage in our growing relationship with IHG. The current EU legislation will ensure that companies have to make major changes to their air conditioning systems over the next seven years. We estimate that there are currently approximately one million units still in use in the UK alone, with a replacement and installation cost of over £7 billion.' Notes to editors European legislation introduced in 2000, banned the use of R22 as an ozone depleting substance and introduced a phase-out programme. As a result, the manufacture of new air conditioning equipment using R22 was discontinued in stages between 2001 and 2004 as manufacturers released equipment to operate on non-ozone depleting substances. The legislation decreed that existing installed systems may be serviced using new R22 until January 2010, after which time only recycled R22 could be used but not beyond 2015. Enquiries: Worthington Nicholls 0870 609 1829 Mark Worthington, Chief Executive David Levis, Corporate Director Blue Oar Securities 020 7448 4400 Romil Patel/Rhod Cruwys Gresham PR Ltd 020 7404 9000 Neil Boom/Laura Black Information on Worthington Nicholls can be accessed via the Group's website: www.worthington-nicholls.co.uk This information is provided by RNS The company news service from the London Stock Exchange
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