Acquisition

Rentokil Initial PLC
30 November 2006

30 November 2006

                    RENTOKIL INITIAL ACQUIRES TARGET EXPRESS

              TO CREATE LEADING OVERNIGHT PARCEL DELIVERY BUSINESS

Rentokil Initial plc today announces that it has, through a subsidiary, made an
offer to the shareholders of Target Express Holdings Limited ('Target Express')
to acquire the entire issued share capital of Target Express on a cash and
debt-free basis for a cash consideration of £210 million, to be satisfied from
existing resources.  This offer is unconditional and acceptances have been
received in respect of 90% of the share capital with the balance expected no
later than the end of the year.

Target Express provides a full range of premium parcel delivery services for
customers throughout the UK, with its main focus on overnight timed deliveries.
It operates from 39 branches with a main hub in Coventry.  Revenue has grown
strongly in the business under the new management team that took charge in 2002.
Turnover and operating profit (before amortisation and exceptional items) of
Target Express for the year to 30 April 2006 were £146.1 million and £17.3
million respectively.

City Link, Rentokil Initial's existing parcel delivery business, also focuses on
the UK overnight timed delivery market and had network turnover of £240 million
in 2005.  City Link has seen parcel volumes and revenue grow faster than the
market every year for the last decade.  In October 2005, the company announced
its intention to buy back and integrate the City Link franchises and now owns
80% of the network (56 franchises); a further 13 franchises will be repurchased
during 2007 in order to complete the buy back programme.  City Link's management
team has been highly successful in integrating these operations into its
existing network.

Target Express and City Link are highly complementary businesses with similar
operating models and both have a strong culture based on customer service and
operational excellence.  Both businesses have outstanding management teams which
are well attuned to the requirements of their market.  Bringing them together
will create a leading overnight parcels operator able to meet the increased
demands of current and prospective customers in a dynamic marketplace.  The
integrated business will provide a wider range of services including same day
deliveries, overseas deliveries, international mail and fulfilment.  Customer
handling processes including track and trace will also be enhanced.

Through these enhancements to customer service and product offerings, the
integrated business is expected to continue to grow parcel volumes and revenues
at an above-market rate.  In addition, City Link management believes that
synergies at an annual run rate of at least £10 million will be achieved by the
end of 2008.  These synergies will be realised through operational integration
and investment in IT, resulting in improved network efficiencies and back office
support functions.  The integration cost of this investment is expected to be
£12 million, most of which will be incurred in 2007 and 2008.  In forming these
views, management has taken into account advice received from Deloitte & Touche
LLP which has performed an independent review of the benefits case for Rentokil
Initial.

The combined business will handle some 340,000 parcels per day.  Operational
integration of the businesses will commence in mid-2007 following investment in
an integrated IT platform.  In the meantime, both businesses will continue to
operate as normal.

Doug Flynn, Chief Executive Officer of Rentokil Initial plc, said: 'Both City
Link and Target Express deliver high quality customer service and outstanding
reliability.  Together, they will create a leader in the premium overnight
parcels market, able to meet the future needs of customers and develop new
products and services.

'In the past year, we have made great progress along the path of transforming
City Link into a fully integrated parcels delivery service through the buy back
of the franchise businesses; today's announcement is a logical next step in the
development of the business.  This acquisition is consistent with our strategy
of creating value for our shareholders by focussing Rentokil Initial on
businesses with strong market positions which offer the prospect of sustainable,
profitable growth.'

                                    - Ends -

Notes to Editors

Target Express

•         Turnover and operating profit of Target Express for the year to 30
April 2006 were £146.1 million and £17.3 million respectively. The cash and
debt-free net assets (excluding goodwill of £37.5 million) at 30 April 2006 were
£4.0 million.  The book value of the gross assets the subject of this
transaction is £73.1 million, including goodwill.

Note: Target Express figures are prepared under UK GAAP.

Operating profit is stated before goodwill amortisation and exceptional costs.

•         Target Express was previously acquired in February 2000 by its
management with backing from 3i plc and other investors.

•         Executive directors Petar Cvetkovic and Keith Broom of Target Express
will remain in the business post completion.

City Link

•         City Link's network turnover in 2005 was £240 million.  Revenue of the
business was £126 million and operating profit was £29 million.  In the third
quarter of 2006, its organic revenue growth was 7.6% and revenue grew by 65%
including acquisitions.

•         City Link currently operates a national network through 69 branches of
which 13 are still managed by franchisees. It is intended to complete the buy
back of these remaining franchises during 2007.

Rentokil Initial

Rentokil Initial is one of the largest business services companies in the world,
operating in all the major economies of Europe, North America, Asia Pacific and
Africa.  The company has some 70,000 employees providing a range of support
services in over 40 countries where the 'Rentokil' and 'Initial' brands have
come to represent innovation, deep expertise and consistent quality of service.
Services include textiles and washroom services, pest control, tropical plants,
electronic security, parcels delivery and facilities services.

For further information, please contact:

Rentokil Initial plc
Malcolm Padley, Corporate Communications - 020 7866 3027/ 07788 978 199
Lisa Williams, Investor Relations - 020 7866 3028/07980 895 419

Brunswick Group
Kate Holgate - 020 7404 5959/07974 982402
Jon Rhodes - 020 7404 5959/07834 502361

A conference call for investors and analysts will be held today at 9:30am.  The
dial-in numbers for this call are: [phone] (UK) and [phone]
42 67 (France).  A recording will be available on replay for the next three
weeks.  The access numbers for this service are: [phone] (UK), +33
(0) 1 71 23 02 48 (France), [phone] (US) and [phone] (Hong Kong).
The PIN for all replay numbers is 7805044#.

This announcement contains statements that are, or may be, forward-looking
regarding the group's financial position and results, business strategy, plans
and objectives.  Such statements involve risk and uncertainty because they
relate to future events and circumstances and there are accordingly a number of
factors which might cause actual results and performance to differ materially
from those expressed or implied by such statements.

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