Acquisition

MITIE Group PLC
21 August 2001


21 August 2001


                                 ANNOUNCEMENT


                          MITIE GROUP PLC ('MITIE')



MITIE announces that it has agreed to acquire the outstanding minority
shareholdings of four subsidiary companies:


MITIE Engineering Services (London) Ltd - ('MES London') 39% of the issued
share capital for a consideration of £3,577,860.


MITIE Engineering Services (Eastern) Ltd - ('MES Eastern') 46.5% of the issued
share capital for a consideration of £2,478,450.


MITIE Cleaning (Midlands) Ltd - ('Cleaning Midlands') 37.14 % of the issued
share capital for a consideration of £1,599,000.


MITIE Air Conditioning (South West) Ltd - ('Air Conditioning') 49% of the
issued share capital for a consideration of £342,412.


MES London and MES Eastern operate as mechanical and electrical engineering
contractors in the London area and the East of England respectively. Cleaning
Midlands provides cleaning and support services to industrial and commercial
clients in Central England. Air Conditioning installs and maintains air
conditioning systems in commercial, industrial and domestic premises across
Southern England.



All four acquisitions are made in accordance with the terms of the agreement
between MITIE and the employee shareholders of MES London, MES Eastern,
Cleaning Midlands and Air Conditioning entered into on 27 March 1996, 31
October 1996, 22 February 1994 and 4 September 1996 respectively.


The total consideration of £7,997,722 will be satisfied by the issue of
5,508,515 new ordinary shares of 21/2p each in MITIE (valued at £1.40 per
share being the mid market price per MITIE share on 3 July 2001) and £285,801
in cash.


After the acquisition MITIE will own 100% of all four companies.


Application has today been made for the 5,508,515 New Ordinary shares of 21/2p
each in MITIE to be admitted to the Official List, maintained by the UK
Listing Authority, and to trading by the London Stock Exchange. Upon admission
the new ordinary shares will rank pari passu with the existing ordinary shares
(except that there is no entitlement to dividends payable in respect of the
year ended 31 March 2001).