Trading Statement

PHSC plc

8 February 2008

TRADING UPDATE

Trading performance

The directors are pleased to announce consolidated Group sales and pre-tax
profits (unaudited) for the nine months ended 31 December 2007.

Group sales and other income for the nine-month period totalled GBP 3,676,519,
representing a 10 per cent increase on the comparative period last year (GBP 3,336,484 to
the end of Q3 in 2006).

Pre-tax profits for the nine months to 31 December 2007 were GBP 555,108, which is
60 per cent above the comparative figure last year (GBP 384,043 to the end of Q3 in 2006).

Acquisition update

The proposed acquisition of Guardian Water Treatment Limited previously
announced will not proceed. The sellers have taken the view that market
conditions are presently unfavourable and their best interests will be served
by remaining as an independent entity. The board of PHSC plc are disappointed
by this decision, notified to it on 7 February 2008, and are continuing to seek
alternative opportunities.

Stephen King, managing director, commented "Whilst we were keen to proceed with
this acquisition we had spent little on due diligence as we always carry out as
much as possible in-house with little or no disruption to our core business. It
is important to note that we receive many acquisition opportunities and we look
forward to reporting on any developments in due course. I am pleased with the
performance of the Group over the first three quarters."

PHSC plc

Stephen King 01622 717700

[e-mail]

www.phsc.plc.uk

Ruegg & Co Limited

Gavin Burnell 020 7584 3663

[e-mail]

Hichens, Harrison & Co plc

Daniel Briggs 020 782 7776