Acquisition & Trading Update

Spice Holdings PLC
25 November 2004


                ACQUISITION OF WATER METER INSTALLATION BUSINESS

Spice Holdings plc ('Spice' or the 'Group'), the provider of outsourced support
services primarily to the UK electricity, telecoms and water sectors, is pleased
to announce that it has acquired, from administrative receivership, part of the
business and selected assets of Atlantic Utility Services Limited ('AUS'), a
water meter installation business, for a cash consideration of £0.56 million.

AUS installs domestic and commercial water meters for United Utilities in the
North West Water region, as well as Dwr Cymru Welsh Water, Wessex Water and
Bristol Water. The business acquired will be added to H2O Water Services Limited
(H2O), the largest company in Spice's Water Services Division, extending H2O's
geographical spread and moving the company further into Wales.

The audited financial statements of AUS for the period ended 31 December 2003
showed turnover of £16 million and operating profits of £0.5 million. The book
value of net assets acquired is £0.57 million, which includes long leasehold
premises and stocks and work in progress.

Prior to acquisition, AUS was H2O's closest competitor and the two businesses
shared the meter installation work of United Utilities. Both companies were also
tendering in competition with each other for a number of term contracts.

Simon Rigby, CEO of Spice, said: 'Less than 25% of homes in the UK have water
meters at present and we see all the economic and environmental pressures making
water meter installation a strong growth sector. As the market grows, water
companies require strong, reliable meter installation partners with which to
work. The acquisition of AUS leaves us well positioned to service this growing
market.'

H2O already services the whole of Yorkshire Water's metering installation
requirements. It is now the main provider of meter installation services to
United Utilities in the UK.

The Board of Spice is confident that this acquisition will be earnings enhancing
in the first full year of ownership and that the Group is well positioned to
make further significant contract wins.


                                 TRADING UPDATE

The Group entered a closed period on 17 November 2004 in respect of its first
interim results since its admission to AIM in August 2004. The Board of Spice is
pleased to advise that trading continues to be in line with the Directors'
expectations.



For further information, please contact:

Spice Holdings plc                                           Tel: [phone]
Simon Rigby, Chief Executive Officer

Rawlings Financial PR Limited                                Tel: [phone]
Catriona Valentine



NOTES TO EDITORS

SPICE HOLDINGS PLC

Spice is a support services business operating predominantly in the utilities
sector. The Group's operations were founded in 1996 and have their origins in
the electricity industry, though the range of activities has since been expanded
into the water sector, niche telecommunications services and the public sector.
Spice's businesses have a common theme of delivering and coordinating basic
infrastructure services to customers (typically in regulated industries),
although the technological element within the product mix has been built up
significantly over the course of the last three years.

H2O WATER SERVICES LIMITED

H2O is the largest business in Spice's Water Services division.

The underlying business of H2O was formed in 1996 from Yorkshire Water's
outsourcing of its meter installation and pipe maintenance and repair services.
It was subsequently purchased by Spice in April 2003. At that time, the company
was 90% dependent on one customer, Yorkshire Water.

Using directly employed labour, H2O now provides water meter installation and
reading as well as leak detection and pipe repair and rehabilitation services
for a variety of regulated water utilities and other customers, including
Yorkshire Water, United Utilities, South East Water, South Staffordshire Water,
Scottish Water, Kingston Communications (in respect of underground duct laying
and associated work) and Kirklees Metropolitan Council. Yorkshire Water now
represents less than 50% of H2O's turnover.

H2O's operations are currently based in Oulton (West Yorkshire) with depots
based around the UK.




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