Acquisition

Rentokil Initial PLC
24 January 2006


24 January 2006


              RENTOKIL INITIAL TO ACQUIRE US PEST CONTROL COMPANY

Rentokil Initial plc announces that it has entered into an agreement to acquire
J.C. Ehrlich Co. Inc. ('Ehrlich') for a consideration of US$141.8 million (£80.1
million).  Ehrlich is the largest independently-owned pest control company in
the US and the fourth largest pest control company in the US overall.  The
transaction will be financed from available cash resources.

Pest Control is one of Rentokil Initial's main business drivers, along with
Washrooms and Textiles, for the creation of sustainable, profitable growth.
Rentokil Initial is already the European market leader in pest control and has
strong market positions in Asia Pacific and South Africa.  The proposed
acquisition of Ehrlich will significantly increase the company's scale in the
attractive North American market, where Rentokil's existing operations have been
growing strongly.

Ehrlich, based in Reading, Pennsylvania, was established in 1928 by Julius C.
Ehrlich and has continued to be owned and managed by the descendants of the
family for four generations.  It operates 42 branches across seven Eastern
states, providing a full range of pest control services to commercial and
residential customers.  In the year ended 31 December 2005, Ehrlich had revenues
of US$124.0 million (£70.0 million).

Rentokil Initial's North American pest control operations, with revenues in 2005
of approximately US$26.0 million (£14.7 million), are currently focused on
commercial customers in complementary geographic regions.  The combined business
will provide Rentokil Initial with a platform for further growth, building on
both companies' strong customer service ethos and technological innovation.

Victor Hammel, currently President of Ehrlich, will assume the role of CEO of
the combined pest control operations which will be based at Ehrlich's existing
headquarters in Reading, Pennsylvania.  Kevin Ward, current President of
Rentokil's pest control operations in North America, will join the combined
organisation's senior management team.

The agreement is subject to customary closing conditions including confirmation
of the financial results of Ehrlich for the year ending 31 December 2005 and on
the expiry of the waiting period under the Hart Scott Rodino Antitrust
Improvements Act of 1976.  Completion of the acquisition is expected before the
end of the first quarter.


                                                                          Cont./

Doug Flynn, Chief Executive of Rentokil Initial, said:

'We are delighted to announce the proposed acquisition of Ehrlich which has an
excellent reputation and a strong market position in the growing US pest control
industry.  This transaction is a major development in our global pest control
strategy and significantly improves our scale and opportunity in this attractive
market.

Ehrlich brings us a substantial business with a strong customer service culture.
Both Ehrlich and our own US businesses are well managed and have shown solid
growth over the last few years.  When combined they will create a strong
platform from which to develop an expanded position in the US pest control
market.'

Victor Hammel, current President of Ehrlich and CEO designate for the combined
pest control operation, said:

'Our relationship with Rentokil Initial will be beneficial for both companies.
Rentokil Initial has a reputation for quality that is very similar to ours and
we believe there is a great deal we can learn from each other.  Over the next
few months, we will consider how to meld the best practices from each
organization so we can better serve our residential and commercial customers.'

Co-owner of Ehrlich, Bobby Hammel said:

'We chose Rentokil Initial because they respected the culture we have cultivated
over the past 78 years.  The future well-being of our co-workers is of the
utmost importance to us, and we feel that this expanded organization will offer
them many new opportunities.'

Enquiries:

Rentokil Initial plc, Tel. [phone]
Mark Boyle, Group Strategy & Development Director
Charles Grimaldi, Corporate Affairs Director

Brunswick Group LLP, Tel. [phone]
John Sunnucks
Gill Ackers


Notes to editors:

Rentokil Initial is one of the largest business services companies in the world,
operating in all the major economies of Europe, North America, Asia Pacific and
Africa.  The company has some 90,000 employees providing a range of support
services in over 40 countries where the 'Rentokil' and 'Initial' brands have
come to represent innovation, deep expertise and consistent quality of service.
Services include pest control, tropical plants, hygiene services, facilities
services, electronic security and parcels delivery.


Rentokil Initial plc, Felcourt, East Grinstead, West Sussex  RH19 2JY


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