Disposals

Rentokil Initial PLC
12 June 2000


RENTOKIL INITIAL MAKES FURTHER DISPOSALS FOR £118 MILLION

Rentokil   Initial,   the  business   services   company,
announces  that  it  has reached agreement  to  sell  two
businesses  for  £118  million.  It  is  selling  its  US
personnel  services business to an equity investor  group
for  US Dollars 65 million (£43.3m), of which Dollars  55
million is in cash and Dollars 10 million is a five  year
note.   It  has  also  reached  agreement  to  sell   its
international  container business for £75m  to  Yardbrace
Limited,   a  private  company  which  operates   similar
container  businesses; £70m of the  consideration  is  in
cash  with  £5m dependent on achievement of a performance
target.

The two businesses had turnover in 1999 of £296m, pre-tax
profits  of  £20.8m and fully taxed earnings  of  £13.2m,
representing a price earnings ratio of nine times.

Sir  Clive  Thompson,  the Chief  Executive  of  Rentokil
Initial, commented:-

'These sales represent a further step in our disposals of
non-core activities to bring total sales proceeds to date
to  £488  million  in line with our target  of  achieving
proceeds of at least £600m.'

Press enquiries:-

Sir Clive Thompson, Chief Executive
C T Pearce, Finance Director
01342 833022