Trading Statement

MITIE Group PLC
30 September 2004



                   MITIE Group PLC ('MITIE' or 'the Company')


Trading statement and disposal


MITIE Group PLC is pleased to confirm that it has had a positive start to its
financial year and continues to trade in line with management's expectations.
Last year's acquisitions are now fully integrated and are contributing well. The
Company remains focused on its growth strategy.

As part of its strategy to divest of capital intensive businesses MITIE
announces that the sale of the entire issued share capital held by MITIE in
MITIE Generation Ltd ('Generation') to a management buyout team led by Mark
Clifford, the current Managing Director of Generation, was completed earlier
today for a total consideration of £12.5m. The sale was to a purchasing company
called Generation Holdings Limited ('the Purchaser').

Generation specialises in the hire and sale of non-mechanical access equipment
to the construction industry throughout the UK. As at 31 March 2004 the net
assets of Generation were £5.7m and profit after tax for the year ended 31 March
2004 was £0.7m.

The consideration is to be satisfied in cash, loan notes and a short-term loan.
It comprises an initial cash payment on completion of £4.4m, loan notes of £2.5m
payable in ten quarterly instalments from 1 January 2007 and a short-term loan
from MITIE to the Purchaser of £0.5m, repayable on 31 March 2005. With this, and
the overdraft of £5.1m taken on by the Purchaser, MITIE has received an
immediate cash inflow of £9.5m. The proceeds of the sale will be used for
general corporate purposes.

The transaction, which will be recorded as an exceptional item in MITIE's
accounts for the financial year ending 31 March 2005, is anticipated to have the
following impact: Goodwill write-off of £6.3m (of which £5.1m was previously
written-off to reserves) and a loss on sale of £3.4m. The Board does not
consider that the effect of this disposal will impact the expected performance
of MITIE for the year.

MITIE's Chief Executive, Ian Stewart, commented, 'This disposal completes our
exit from the scaffolding and access market. The sale of Generation is the
appropriate strategic move for MITIE. I wish the management team every success
in their venture.'

MITIE Property Investments Ltd, a wholly-owned subsidiary company of MITIE which
manages the Company's property portfolio, has sold premises at 180 Riverford
Road, Glasgow to McCarthy & Stone PLC for £2.0m. The sale is anticipated to
result in a profit on disposal of £1.5m.

In accordance with the announcement made at the Preliminary Results on 7 June
2004 and the authority renewed by shareholders at the Annual General Meeting on
29 July 2004 to purchase up to 30.8m Ordinary shares of 2.5p each in the Company
('MITIE shares') (approximately 10% of the issued share capital), the share
buyback programme has commenced. To date the Company has purchased a total of 7m
MITIE shares at an average price of 137.64p. The highest and lowest prices paid
for such MITIE shares over the relevant period were 138p and 131p respectively.
All MITIE shares purchased have been subsequently cancelled.

Shareholder approval, via a circular, will shortly be sought for an equity
participation scheme in respect of shares in MITIE Cleaning Services Ltd
('MCSL') (the 'Scheme'). The principal terms of the Scheme will be set out in
the circular. The opportunity to subscribe for shares in MCSL has been made
available to MCSL management who are closely involved in the management of the
business. It is anticipated that up to 150 senior employees will subscribe. This
Scheme is a major development of the MITIE model of incentivising management
through equity participation.

MITIE will report more fully on its progress in the first half of this year when
it announces its interim results for the six month period ended 30 September
2004 on Monday 29 November 2004.

30 September 2004


For more information please contact:

Ian Stewart                                John Telling
Chief Executive                            Head of Corporate Affairs
MITIE Group PLC                            MITIE Group PLC
8 Monarch Court                            22 Shand Street
The Brooms                                 London
Emersons Green                             SE1 2ES
Bristol
BS16 7FH

Tel: [phone]                         Tel: [phone]
Mob: [phone]                          Mob: [phone]


Ruby McGregor-Smith
Finance Director
MITIE Group PLC
8 Monarch Court
The Brooms
Emersons Green
Bristol
BS16 7FH

Tel: [phone]
Mob: [phone]





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