Acquisition

Rentokil Initial PLC 25 October 2006 25 October 2006 RENTOKIL INITIAL ACQUIRES 16 CITY LINK FRANCHISES Buy back programme ahead of schedule Rentokil Initial plc today announces that City Link has completed the acquisition of a further 16 of its franchises for a total consideration of £25.5 million. The franchises were acquired through the purchase of Tiger Haulage, Abbott Enterprises, Hallamgate Enterprises and Greenway Bird Express. The four businesses had a combined turnover of £95 million for the year to completion. Thirty three franchises have been acquired since the buy back programme was announced a year ago. The company announced in October 2005 its intention to buy back and integrate the City Link franchises and, following the completion of the four transactions, has spent £50 million on the initiative to date. City Link now owns 80% of the network (57 franchises). There remain a further nine acquisitions (13 franchises) to complete the buy back programme. Doug Flynn, Chief Executive of Rentokil Initial plc, commented: 'I am pleased with the progress we are making in transforming the City Link business. These latest deals bring to 33 the number of franchises we have bought in just 12 months and I look forward to completing the process ahead of schedule in 2007. Directly managing the customer facing elements of our business allows us both to improve efficiency and our responsiveness to customers.' The franchise acquisition programme is part of a wider initiative to transform City Link into a fully integrated premium parcels delivery service. In the past six months, a new customer facing structure has been introduced with the creation of regional customer centres and the launch of upgraded systems to track parcels throughout the journey from consignor to consignee. The business continues to win market share, with parcel volume up 10% in the first half of 2006 and continued high levels of customer satisfaction. www.city-link.co.uk www.rentokil-initial.com - Ends - For further information, please contact: Rentokil Initial plc, Tel. +44 (0) 20 7866 3000 Malcolm Padley, Corporate Communications Lisa Williams, Investor Relations Brunswick Group LLP, Tel. +44 (0) 20 7404 5959 Kate Holgate and Jon Rhodes This information is provided by RNS The company news service from the London Stock Exchange
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