Acquisition

MITIE Group PLC
07 October 2003

                           MITIE GROUP PLC ('MITIE')

                 Acquisition of shares in subsidiary companies

MITIE announces that it has today agreed to acquire the following minority
shareholdings of four subsidiary companies in accordance with their
Shareholders' Agreements.


MITIE's Chief Executive, Ian Stewart commented, 'These are good examples of how
our start up companies contribute to the growth of MITIE and provide
opportunities to their management teams. The start up model remains a key
component of our future growth strategy.'


The four companies are:


MITIE Engineering Maintenance Ltd ('MEM') - 31.67% of the issued share capital,
comprising 95,000 B ordinary shares of 1p each and 95,000 deferred shares of 20p
each, for a consideration of £5,138,558.  Such consideration will be satisfied
as to £45,409.67 in cash and as to the remaining £5,093,148.33 by the issue of
4,140,771 new ordinary shares of 2.5p each in MITIE.  MEM undertakes the
maintenance of mechanical and electrical systems in commercial and industrial
buildings throughout the UK.  The post tax profits of MEM for the year ended 31
March 2003 were £2,169,859 and its net asset value as at 31 March 2003 was
£4,879,187.  MEM will continue to develop a national maintenance service for our
customers.


MITIE Property Services (Midlands) Ltd ('MPS Midlands') - 42.51% of the issued
share capital, comprising 78,000 B ordinary shares of 1p each and 78,000
deferred shares of £1 each, for a consideration of £1,853,290.  Such
consideration will be satisfied as to £79,015 in cash and as to the remaining
£1,774,275 by the issue of 1,442,500 new ordinary shares of 2.5p each in MITIE.
MPS Midlands undertakes building refurbishment, maintenance, painting and
decorating in the Midlands area.


MITIE Engineering Services (Peninsula) Ltd ('MES Peninsula') - 48% of the issued
share capital, comprising 38,400 B ordinary shares of 1p each and 12,000
deferred shares of £1 each, for a consideration of £1,018,371.  Such
consideration will be satisfied as to £47,011.71 in cash and as to the remaining
£971,359.29 by the issue of 789,723 new ordinary shares of 2.5p each in MITIE.
MES Peninsula operates principally in Devon and Cornwall as mechanical and
electrical engineering contractors.


MITIE Greencote Ltd ('Greencote') - 27.72% of the issued share capital,
comprising 40,050 B ordinary shares of 1p each and 40,050 deferred shares of 1p
each, for a consideration of £328,815.50.  Such consideration will be satisfied
as to £39,508.43 in cash and as to the remaining £289,307.07 by the issue of
235,209 new ordinary shares of 2.5p each in MITIE.  Greencote provides
plastering and building refurbishment services to clients in the North East of
England.  3.08% of the issued share capital of Greencote will still be held by
minorities following the acquisition.


The total consideration for all four acquisitions amounts to £8,339,034.50
satisfied as to £210,944.81 in cash and as to the remaining £8,128,089.69 by the
issue of 6,608,203 new ordinary shares of 2.5p each in MITIE ('the New MITIE
Shares'), valued at £1.23 per share (being the mid market price per MITIE share
on 2 October 2003).


As a result of these acquisitions MITIE will own 100% of MEM, MPS Midlands and
MES Peninsula and 96.92% of Greencote.


Application will be made shortly to the United Kingdom Listing Authority for the
admission to the Official List, and the London Stock Exchange plc for admission
to trading on its market for listed securities, for the New MITIE Shares, which
will rank pari passu with the existing ordinary shares.  It is expected that
admission of the New MITIE Shares to the Official List will become effective on
10 October 2003 and that dealings will commence on 13 October 2003.


For further information please contact:


John Telling
Head of Corporate Affairs
MITIE Group PLC
Tel: [phone]; Mobile: [phone]


Ruby McGregor-Smith
Group Finance Director
MITIE Group PLC
Tel: [phone]; Mobile: [phone]


7 October 2003



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