Acquisition

Spice Holdings PLC
08 June 2006

8 June 2006



                               SPICE HOLDINGS PLC



ACQUISITION OF BREVAL TECHNICAL SERVICES LIMITED IN COMMERCIAL SERVICES DIVISION



Spice Holdings plc ('Spice' or the 'Group') is pleased to announce the
acquisition of Breval Technical Services Limited (and its subsidiary, Breval
Environmental Limited) (together 'Breval') for a total consideration of £8.35
million paid in cash at completion.  The consideration is subject to adjustment
based on the net assets at completion but with an overall cap on consideration
of £8.66 million.  In addition, Spice will acquire the cash balances in Breval's
balance sheet on a pound for pound basis.



Breval will form part of Spice's Commercial Services Division, which also
includes Circle Britannia and Serviceline.



Breval is based in Glasgow and specialises in the design, installation and
maintenance of heating, ventilation and air-conditioning ('HVAC') services for a
range of commercial, industrial and public sector customers.  In addition, it
provides asbestos removal services. Breval's customer base is spread across the
United Kingdom.



Breval was established in 1977 by John S MacMillan and is wholly owned by him.
Following completion, he will be retiring from the business but will be retained
on a consultancy basis. Two other family members, John G MacMillan and Anna
MacMillan will remain as directors of the business.  John G MacMillan has worked
within the business for 11 years and will continue as Managing Director.  The
two other Directors of Breval will also remain with the business as Directors.



The consolidated audited accounts of Breval for the year ended 31 March 2006
show turnover of £5.6 million and operating profits of £1.3 million.  Net assets
of Breval at 31 March 2006 were £2.4 million (including cash balances). The
consideration of £8.35 million payable at completion represents a multiple of
operating profits of 6.2 times.



Simon Rigby, Chief Executive of Spice Holdings, said:



'Spice has been seeking to gain presence in the HVAC maintenance market for
several years. The acquisition of Breval brings to the Group a high level of
technical skills in activities which we are confident will play a key part in
the growth of our Commercial Services Division.  We see tremendous opportunities
to sell HVAC services to our existing client base within Commercial Services.



As part of our growing activities in energy management, we see the efficient
installation and maintenance of these systems as a key part of our future
service offering.  Additionally, we believe there are considerable opportunities
to provide asbestos removal services to our utility clients. We are particularly
delighted that four of the directors of Breval will be joining us and look
forward to seeing the business grow and develop as part of Spice. We are also
pleased to be extending our presence in Scotland.'



John G MacMillan, Managing Director of Breval, said:



'I am delighted to see Breval become part of the Spice group.  I believe that
the employees and directors will be able to continue to grow the business as
part of a larger group, with all the opportunities that provides.'



                                   -  Ends  -





For further information, please contact:


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

Oliver Lightowlers, Group Finance Director
Carl Chambers, Corporate Development Director

Financial Dynamics Limited                                   Tel:  [phone]
Billy Clegg

Sally Lewis





NOTES TO EDITORS



Spice Holdings plc



Spice is a support services business operating in the utilities and facilities
management 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, the
public sector 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.


Circle Britannia and Serviceline

Circle Britannia is a provider of outsourced facilities services to corporate
clients and reinstatement services for major insurers.

ServiceLine provides outsourced maintenance helpdesk services delivered either
as part of an integrated facilities management service, incorporating Circle
Britannia's facilities service operation, or as a stand alone service managing
client's existing suppliers.

For further information: www.breval.co.uk




                      This information is provided by RNS
            The company news service from the London Stock Exchange