Acquisition

MITIE Group PLC
30 June 2005



                           MITIE Group PLC ('MITIE')

              Acquisition of The Watch Security Limited ('Watch')

National coverage in Security

MITIE is pleased to announce that it has acquired 100% of the issued share
capital of Watch for a consideration of £6 million payable in cash on
completion, with an additional £2 million payable in two further tranches of
£1,020,000 in January 2007 and £980,000 in June 2007. The consideration is
subject to an adjustment of up to an additional £100,000 if the net asset value
of Watch exceeds £1.2 million at completion, thus giving a total maximum
consideration of £8.1 million.

Watch is a provider of manned guarding and electronic security solutions based
in Warwick and operating throughout the Midlands. The manned guarding division
provides the standard services of static guarding, mobile patrolling,
key-holding, alarm response and remote monitoring. In addition, the Company has
also developed a service called 'Collective Security' whereby neighbouring
businesses contribute towards the cost of providing local security. Major
customers include property management companies, financial institutions and
education establishments. In October 2002, Watch established an electronic
security solutions business which will complement our recent acquisition of
Intruder International Limited.

Watch's audited accounts for the financial year ended 30 June 2004 showed
turnover of £15.3 million, pre-tax profits for the year of £0.4 million and net
assets of £1.08 million. It is estimated that considerable synergy savings will
be achieved on the integration of Watch with MITIE.

Lt Col Richard Evans, the founder of the business, will remain with the Company
after completion.

Welcoming Watch to MITIE, Chief Executive Ian Stewart commented, 'The
acquisition of Watch completes our national footprint for Security enabling us
to provide our customers with a more comprehensive service and to compete for
larger national contracts'.

30 June 2005




For further information, please contact:

Ian Stewart, Chief Executive, MITIE Group PLC
Tel: [phone]
Mob: [phone]

Ruby McGregor-Smith, Finance Director, MITIE Group PLC
Tel: [phone]
Mob: [phone]

John Telling, Head of Corporate Affairs, MITIE Group PLC
Tel: [phone]
Mob: [phone]






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