Offer Update

Mears Group PLC 30 March 2007 Not for release, distribution or publication in whole or in part in, into or from the United States, Canada, Australia, the Republic of South Africa, New Zealand, the Republic of Ireland or Japan or any other jurisdiction if to do so would constitute a violation of the relevant laws of such jurisdiction. Recommended offer with full cash alternative by Mears Group PLC for the entire issued and to be issued ordinary share capital of Careforce Group plc Offer unconditional as to acceptances On 5 March 2007, Mears Group PLC ('Mears') announced the terms of a recommended offer to purchase the entire issued and to be issued share capital of Careforce Group plc ('Careforce'). Under the terms of the Offer, Careforce Shareholders will receive 0.4552 new Mears Shares for each Careforce Share they hold. Careforce Shareholders who validly accept the Offer may elect to receive cash in lieu of some or all of the new Mears Shares to which they would otherwise be entitled on the basis of 150p in cash for each Careforce Share. The Offer Document was posted to Careforce Shareholders on 9 March 2007. Mears announces that, as at 1.00 p.m. on 30 March 2007, being the first closing date of the Offer, valid acceptances of the Offer had been received in respect of a total of 13,171,952 Careforce Shares representing 94.85 per cent. of the issued share capital of Careforce. None of these acceptances were received from persons acting in concert with Mears and each of these acceptances will be counted towards the satisfaction of the acceptance condition under the Offer. Prior to making the Offer, Mears obtained irrevocable undertakings to accept, or procure the acceptance of, the Offer from certain Careforce Shareholders in respect of 7,635,179 Careforce Shares, representing in aggregate approximately 55.0 per cent. of the issued share capital of Careforce. In respect of the Careforce Shares which are the subject of irrevocable undertakings, Mears had at 1.00 pm on 30 March 2007 received valid acceptances in respect of all such shares. Accordingly, the Board of Mears announces that the acceptance condition set out in condition (a) of Part A of Part IV to the Offer Document has been satisfied and that the Offer has become unconditional as to acceptances. The Offer will remain open for acceptance until further notice but at least for the next 14 days. Careforce Shareholders who have not yet accepted the Offer are urged to do so as soon as possible. The Cash Alternative will remain open until 1.00 p.m. on 13 April 2007, at which time it will close. The Offer remains conditional upon the remaining conditions contained in Part A of Part IV to the Offer Document, including the passing of the resolution to be proposed at the Extraordinary General Meeting on 2 April 2007 and the admission of the Placing Shares to trading on AIM and such admission becoming effective in accordance with the AIM Rules. It is expected that Admission will become effective on 4 April 2007. Save for a contract for differences in respect of 20,000 Careforce Shares held by Reginald Pomphrett, a director of Mears, neither Mears nor any person deemed to be acting in concert with Mears for the purpose of the Offer: (a) owned or controlled any Careforce Shares, or any rights over such Careforce Shares immediately prior to 5 March 2007, being the commencement of the Offer Period; (b) has acquired or agreed to acquire any Careforce Shares (or rights over Careforce Shares) during the Offer Period, (c) is interested in or has any rights to subscribe for Careforce Shares (d) holds any short position under a derivative referenced to Careforce Shares, (e) is a party to any agreement to sell or any delivery obligation or right to require another person to purchase or take delivery of any Careforce Shares, or (f) has borrowed or lent, save for borrowed shares which have been either on-lent or sold, any Careforce Shares. Accepting the Offer Careforce Shareholders who hold their Careforce Shares in certificated form who wish to accept the Offer and have not done so should complete their Form(s) of Acceptance and return it/them by post or (during normal business hours only) by hand to Lloyds TSB Registrars, The Causeway, Worthing, West Sussex BN99 6DA as soon as possible and, in any event, so as to be received no later than 1.00 p.m. on 13 April 2007, by following the procedure set out in paragraph 16(a) of Part II of the Offer Document. Additional Forms of Acceptance are available from Lloyds TSB Registrars by telephone on 0870 609 2158 (or +44 1903 276 342 if telephoning from outside the UK) or at the address referred to above. Careforce Shareholders who hold their Careforce Shares in uncertificated form (that is, in CREST), who wish to accept the Offer and have not done so, should make their acceptance electronically through CREST so that the TTE instruction settles no later than 1.00 p.m. on 13 April 2007, by following the procedure set out in paragraph 16(b) of Part II of the Offer Document. Careforce Shareholders who are CREST sponsored members, should refer to their CREST sponsor before taking any action as only their CREST sponsor will be able to send the necessary TTE instruction to CRESTCo in relation to their Careforce Shares. The expressions used in this announcement, unless the context otherwise requires, bear the same meaning as in the Offer Document dated 9 March 2007. This announcement does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any security, nor is it a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of the securities referred to in this announcement in any jurisdiction in contravention of applicable law. Investec Investment Banking, a division of Investec Bank (UK) Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as financial adviser and broker to Mears and no one else in connection with the Offer and will not be responsible to anyone other than Mears for providing the protections afforded to clients of Investec nor for providing advice in connection with the Offer or the contents of this announcement or any matter referred to herein. Arbuthnot Securities Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as financial advisor to Careforce and no one else in connection with the Offer and will not be responsible to anyone other than Careforce for providing the protections afforded to clients of Arbuthnot Securities nor for providing advice in connection with the Offer or the contents of this announcement or any matter referred to herein. CLB Littlejohn Frazer, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as financial advisor to Careforce and no one else in connection with the Offer and will not be responsible to anyone other than Careforce for providing the protections afforded to clients of CLB Littlejohn Frazer nor for providing advice in connection with the Offer or the contents of this announcement or any matter referred to herein. The release, publication or distribution of this announcement in jurisdictions other than the United Kingdom may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about, and observe, such restrictions. Failure to comply with the restrictions may constitute a violation of securities laws of any such jurisdiction. Unless otherwise determined by Mears and permitted by applicable law and regulation, the Offer is not being, and will not be, made, directly or indirectly, in, into or from, or by use of the mails of, or by any means or instrumentality (including, without limitation, facsimile transmission, telex, telephone or email) of interstate or foreign commerce of, or by any facility of a national securities exchange of, nor will it be made in, into or from the United States, Canada, Australia, the Republic of South Africa, New Zealand, the Republic of Ireland or Japan or any other jurisdiction if to do so would constitute a violation of the relevant laws of such jurisdiction and the Offer will not be capable of acceptance by any such use, means, instrumentality or facilities. Accordingly, copies of this announcement, the Offer Document, the Form of Acceptance and any other documents relating to the Offer are not being, and must not be, directly or indirectly, mailed, transmitted or otherwise forwarded, distributed or sent, in whole or in part, in, into or from the United States, Canada, Australia, the Republic of South Africa, New Zealand, the Republic of Ireland or Japan or any other jurisdiction if to do so would constitute a violation of the relevant laws of such jurisdiction and persons receiving such documents (including custodians, nominees and trustees) must not directly or indirectly mail, transmit or otherwise forward, distribute or send them in, into or from any such jurisdiction as to do so may invalidate any purported acceptance of the Offer. Dealing Disclosure Requirements Under the provisions of Rule 8.3 of the City Code, if any person is, or becomes, 'interested' (directly or indirectly) in 1 per cent. or more of any class of 'relevant securities' of Careforce or of Mears all 'dealings' in any 'relevant securities' of Careforce or of Mears (including by means of an option in respect of, or a derivative referenced to, any such 'relevant securities') must be publicly disclosed by not later than 3.30 p.m. (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the Offer Period otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an 'interest' in 'relevant securities' of Careforce or of Mears, they will be deemed to be a single person for the purpose of Rule 8.3. Under the provisions of Rule 8.1 of the City Code, all 'dealings' in 'relevant securities' of Careforce or Mears by Mears or Careforce, or by any of their respective 'associates', must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction. A disclosure table, giving details of the companies in whose 'relevant securities' 'dealings' should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk. 'Interests in securities' arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an 'interest' by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. Terms in quotation marks are defined in the City Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a 'dealing' under Rule 8, you should consult the Panel. Enquiries Investec Keith Anderson Daniel Adams 020 7597 5970 This information is provided by RNS The company news service from the London Stock Exchange

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Mears Group (MER)
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