Acquisition

Spice PLC
01 June 2007

1 June 2007

                                   Spice plc

                    Acquisition of Homerton Heating Limited

Spice plc ('Spice' or 'the Group') is pleased to announce the acquisition of
Homerton Heating Limited ('Homerton'), the public sector gas and heating
services business, for a total initial consideration of £1.48 million. Homerton
will become part of Spice's Public Services Division. The price paid represents
a multiple of 3.0 times maintainable operating profits for the year ended 31
March 2007. Additional contingent consideration of 2.0 times annualised
operating profit for the 13 months period ending 30 April 2008 will also be
payable based on the performance of Homerton over that period.

The total initial consideration is subject to adjustment based on the working
capital at completion with upto £0.5 million becoming payable following the
production and agreement of completion accounts. There will be a cap on the
maximum total consideration, including contingent consideration and the working
capital adjustment, of £4.0 million.

Homerton was established in 1996 and is wholly owned by its directors and their
families.  One of the two current directors of the business, Tony Ward, will
remain with the business following the acquisition. Homerton employs 22 people,
including 12 CORGI registered gas engineers.

Homerton installs, services and maintains gas appliances and heating systems in
domestic and commercial properties owned by social housing bodies and local
authorities predominantly based in the South of England.  It currently has
service and maintenance agreements covering approximately 7,000 properties, such
agreements typically being for periods of between two and five years.  The range
of services provided includes the annual review of appliances and systems, the
production of certificates for landlords confirming compliance with safety
regulations and any related servicing and repairs.

The financial statements of Homerton for the year ended 31 March 2007 show
turnover of £2.10 million and adjusted operating profits of £0.50 million.  Net
assets of Homerton at 31 March 2007 were £0.35 million (including cash
balances).

Simon Rigby, Chief Executive Officer of Spice, said:

"Homerton complements Spice's other recent gas acquisitions and enhances the
strength of our Public Services Division. Spice remains committed to its
strategy of achieving national coverage in the UK market, using established
regional businesses and brands. When we achieve national coverage we anticipate
significant cross selling opportunities in Meter Operations and Commercial
Maintenance.

"Since the formation of our Public Services Division we have been able to grow
the existing businesses, through being part of a larger quoted group which
provides access to larger clients and through offering first response services
in the North West as well as the South of England. Across the Public Service
Division, we now have access to nearly 315 CORGI registered gas engineers which
provides us with an excellent platform to provide our clients with a responsive
and effective service."

Tony Ward, Managing Director of Homerton, said:

"We are delighted that Homerton is joining Spice. We see significant scope to
further develop the business as part of a larger group. There is a strong
strategic fit between Homerton and Spice's existing activities and we are
confident that Spice will be able to enhance the portfolio of services we
provide to our clients."

                                    - Ends -

For further information, please contact:

Spice 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
Caroline Stewart

KBC Peel Hunt                                                Tel:  [phone]
Julian Blunt


NOTES TO EDITORS

Spice plc

Spice is a support services business operating in the Commercial Services,
Public Services and Utility Services sectors. 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, energy management 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.


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