Acquisition

Spice PLC
11 December 2007



11 December 2007



                                  Spice plc


                     Acquisition of Gas Heating UK Limited


Spice plc ("Spice" or "the Group"), the provider of Total Utility Support
Services, is pleased to announce the acquisition of Gas Heating UK Limited and,
its subsidiary undertaking, Gas Call Services Limited (together "GCS"). GCS will
form part of our Gas Services business and extends our national geographic
footprint into Scotland.



The acquisition of GCS is for an initial cash consideration of £2.25 million.
The price paid represents a multiple of 8.2 times operating profit for the year
ended 31 August 2007. Additional contingent cash consideration of 8.5 times
operating profit for the 12 months ending 31 October 2008, less the £2.25
million initial cash consideration, will also be payable depending on the
performance of GCS over that period.



The initial cash consideration is subject to adjustment based on the working
capital at completion with a maximum amount of £0.45 million becoming payable
following the production and agreement of completion accounts.  There will be a
cap on the maximum total cash consideration payable, including contingent cash
consideration and the working capital adjustment, of £6.45 million.



Headquartered in Glasgow, the business was established in 1996 and is owned by
Mike Donnelly, Terry Maclean and three trusts. Mike Donnelly will remain with,
and as a director of, the business following the acquisition.



GCS installs, services and maintains gas appliances and heating systems in over
25,000 domestic and commercial properties owned by social housing bodies and
local authorities predominantly located in Scotland but also in West Yorkshire.
Service and maintenance agreements are typically for periods of between two and
five years. The range of services provided includes the annual review of
appliances and systems, the production of certificates for landlords confirming
compliance with safety regulations and any related servicing and repairs. GCS
employs 140 people including approximately 100 CORGI registered gas engineers.



The unaudited financial statements of GCS for the year ended 31 August 2007 show
turnover of £6.8 million and operating profits of £0.28 million.  Net assets at
31 August 2007 were £1.0 million.



Simon Rigby, Chief Executive Officer, of Spice, commented:



"The acquisition of GCS strengthens our Gas Services business, extends our
operational capability and is in line with our strategic growth plans for this
sector.  Our new bases in Scotland provide the Group with a sound footing for
future development of both new and existing workloads.  Spice remains committed
to its strategy of achieving national coverage in the UK gas market, using
established regional businesses and brands, in order to address the Gas Meter
Operations and Commercial Gas Maintenance markets.



Across our Gas Services business, we now have access to nearly 440 CORGI
registered gas engineers which provides us with an excellent platform to provide
our clients with a responsive and effective service. The GCS acquisition is a
valuable addition to the Group."



Mike Donnelly, Managing Director of GCS, commented:



"I am pleased that GCS is joining Spice's Gas Services business.  This is a
great opportunity to grow the business further with the support of a larger
group. GCS will now meet its aspirations of becoming part of a national gas
service provider, offering a quality and competitive service to our broad range
of clients."



                                                                  Ends

Enquiries:

Spice plc                                                     Tel: [phone]
Simon Rigby, Chief Executive Officer
Oliver Lightowlers, Group Finance Director
Carl Chambers, Corporate Development Director

Financial Dynamics                                            Tel: [phone]
Billy Clegg
Caroline Stewart

KBC Peel Hunt (Nominated Adviser and Broker)                  Tel: [phone]
Julian Blunt







NOTES TO EDITORS



Spice plc

Spice is a support services business providing Total Utility Support Services.
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, the public sector,
energy management and commercial facilities management. Spice's businesses have
a common theme of delivering and co-ordinating infrastructure services to
customers, and the technological element within the product mix has been built
up significantly over the course of the last three years.






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