Disposal

Shanks Group PLC
03 October 2005

3 October 2005

Company Announcement

Shanks Group plc



Disposal of UK Hazardous Waste Operations for GBP 34 million

Shanks Group plc, a leading European waste management company today announces that it has sold the major part of its UK 
hazardous waste operations to Onyx for a gross cash consideration of £28m.

In a separate transaction with Waterfront Edinburgh Ltd, Shanks has agreed to the closure of its liquid waste processing
plant and the renunciation of the lease on its Granton site. A gross cash consideration of £6m will be paid of which £2m
will be received on clearing the site.

Together the above assets constitute all of Shanks' UK hazardous waste operations ('Hazwaste activities').

Following a strategic review in 2003, Shanks decided to focus its UK operations on the emerging market for long term 
municipal waste contracts using new technologies, and on the recycling of non-hazardous industrial and commercial waste 
as landfill tax increases.

From the proceeds £5m will be paid into the Group's UK defined benefit pension scheme to cover the residual liabilities 
of the employees of the Hazwaste activities who have become deferred pensioners. The balance of the proceeds after costs
will be used to fund corporate development both in the UK and the Benelux.

The assets sold comprise the high temperature incinerator and waste-to-energy plant at Fawley together with nine other 
chemical treatment sites, including the Granton site. The book value of the assets were £23m for those sold to Onyx and
£1m for Granton giving an expected overall profit on disposal of £6m after transaction and closure costs.

The contribution the Hazwaste activities made to the Group's 2004/5 pre tax profits was de minimis.

Michael Averill, Group Chief Executive said: 'I am delighted with this disposal of our non-core Hazwaste activities. 
Onyx are committed to this market which I am sure will be beneficial to our former employees and customers in the 
future. Additionally the transaction releases financial and management resources to focus on the core business'.


                                      Ends

For further information please contact:

Michael Averill, Group Chief Executive

David Downes, Group Director

Fraser Welham, Group Finance Director

Shanks Group plc, telephone [phone]


Ginny Pulbrook, Executive Director

Citigate Dewe Rogerson, telephone [phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange