Issue of Equity

Issue of Equity

PHSC  plc  ("the Company"), the provider of health, safety and environmental services to corporate
and  public  sector  clients, announces that the Company has today placed 1,886,792  new  ordinary
shares at 53p per share raising the gross sum of £1,000,000 for the Company.

These  funds  will  be used for general working capital purposes and to assist  with  the  general
expansion of the business. The Company continues to seek acquisitions to complement its offering.

The  new  ordinary shares rank pari passu with all other shares and application has been made  for
the new shares to be admitted to AIM with trading expected to commence at 8am on 29 March 2007.

Following  this placing the total number of shares in issue will be 11,657,296 ordinary shares  of
10p each.

In  addition,  to satisfy demand and to reduce the directors' shareholdings to a more  appropriate
level,  a  further  1,068,396 shares owned by directors have also been placed  with  institutional
investors at 53p per ordinary share as follows.

Stephen  King,  managing director, has disposed of 593,396 ordinary shares and  retains  3,089,153
ordinary shares in the Company or 26.5%.

Nicola  Coote,  director, has disposed of 475,000 ordinary shares and retains  3,070,395  ordinary
shares in the Company or 26.3%.

As a result of the placing Unicorn AIM VCT 2 plc holds 1,792,453 ordinary shares in the Company or
15.4% and Framlington AIM VCT 2 plc holds 412,399 ordinary shares in the Company or 3.54%.

Directors shareholdings are now 6,159,548 ordinary shares or 52.8%. In addition Stephen  King  and
Nicola  Coote have a joint interest in 33,400 shares held in the PHSC Retirement and Death Benefit
Scheme, an approved pension fund for the benefit of the executive directors.

On  behalf  of  the  Board  of  PHSC plc, Stephen King said "We are pleased  to  welcome  our  new
institutional  shareholders. In particular, the financial investment from Unicorn and  Framlington
will  assist  in improving the profile of PHSC plc within the investor community, and  we  aim  to
perform to a level that justifies their confidence in the Company.

For further information please contact:

PHSC plc
Stephen King 01622 717700
[e-mail]
www.phsc.plc.co.uk

Ruegg & Co Limited
Gavin Burnell 020 7584 3663
[e-mail]

PHSC plc