Pension Scheme Deficit

Rentokil Initial PLC
19 December 2005


19 December 2005


RENTOKIL INITIAL plc ADDRESSES PENSION SCHEME DEFICIT


In its third quarter update on 3 November 2005, Rentokil Initial plc ('the
Company') announced that it was in discussions with the Trustees of the Defined
Benefit (DB) Sections of the Rentokil Initial Pension Scheme ('the Scheme')
regarding measures to address the Scheme's funding deficit and to ensure
appropriate future funding levels.  These discussions have resulted in the
company proposing a series of positive steps which will deal with these issues
and protect the security of the Scheme's benefits for its members.


The deficit of the UK Scheme under IAS 19 as at 30 November 2005 was estimated
to be £325 million.  In response to a general trend of increasing longevity,
which has adversely impacted the Scheme, the Company and Trustees have agreed to
a more prudent basis for estimating longevity that will increase this deficit by
an additional £24 million.  An agreement has been reached between the Company
and the Trustees to make an immediate payment of £200 million, with the
remaining deficit being met by a series of payments ending no later than January
2012.   The changed regulatory environment for pensions requires the Company to
deal with these issues in a shorter timescale than it might otherwise have done.
The total funding required to address the deficit will be in the range of £370
million to £380 million depending on the final timing of the payments.


In order to reduce the likelihood that the scheme deficit will increase
materially in the future, following discussions with the Company, the Trustees
will be reviewing the Scheme's investment strategy, with the aim of reducing
potential volatility that might be caused by market movements.  This will result
in a lower exposure to equities over time and improve the security of Scheme
benefits.


With immediate effect, the Company will be entering into a period of
comprehensive consultation with active members of the DB Sections of the Scheme.
The Company is proposing to close the DB Sections for the future accrual of
benefits for active members.  The aim of this is to reduce exposure to future
shortfalls and to ensure that the Scheme will be in a position to continue to
pay all benefits that have been earned to date by its members.  It will also
provide the Company with more predictable costs of future pension provision.
The proposed closure will have no impact on the scheme's deferred pensioners and
pensions in payment.


If the Company's proposals are implemented, existing active members of the
Scheme's DB Sections will be offered membership in a defined contribution
arrangement so that they can continue to make provision for retirement.


Final decisions regarding the review will be taken once the consultation period
with active members has been completed later in 2006.




Shareholder/analyst enquiries
Andrew Macfarlane, CFO                               Tel: [phone]
Lisa Williams, Investor Relations                    Tel: [phone]



Media enquiries
Charles Grimaldi, Corporate Affairs Director         Tel: [phone]
Gill Ackers/Kate Miller, Brunswick Group LLP         Tel: [phone]

Notes to editors:

The Defined Benefit Sections of the Rentokil Initial Pension Scheme currently
has 3,000 active members, 15,000 deferred pensioners and 8,000 pensions in
payment.



At 30 November 2005, the scheme had assets of £640 million and liabilities of
£965 million.



In the Lane Clark Peacock Accounting for Pensions Annual Survey 2005, Rentokil
Initial had the 96th lowest level of pension scheme funding out of the FTSE-100.


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