Acquisition

Spice PLC
05 December 2007



5 December 2007

                                   Spice plc

                      Acquisition of Saturn Energy Limited

Spice plc ("Spice" or "the Group"), the provider of total utility support
services, is pleased to announce the acquisition of Saturn Energy Limited 
("Saturn"). Following the acquisition, Saturn will form part of our energy
management business.

The acquisition of Saturn is for an initial cash consideration of £3.5 million.
Additional contingent consideration will be payable based on Saturn's results
for the years ending 30 April 2008 and 30 April 2009 respectively.  The
additional contingent consideration will be capped at £4.75 million. Interest
will be payable on the additional consideration, capped at a maximum of £0.4
million.

The initial consideration is subject to adjustment based on the working capital
at completion subject to an overall cap of £0.35 million following the
production and agreement of completion accounts. The total consideration payable
(including the initial consideration, the additional contingent consideration,
the working capital adjustment and the interest) is capped at £9.0 million.

The audited financial statements of Saturn for the 11 months ended 30 June 2007
show turnover of £1.4 million and adjusted operating profits of £0.8 million.
Net assets at 30 June 2007 were £0.1 million.  On this basis, extrapolating the
11 months results to a full year, the initial consideration represents a
multiple of 4 times historic operating profit.  However, following the
acquisition of Saturn, the revenue recognition policies of Saturn will be
changed in order to bring them in line with the more conservative policies of
Spice's Inenco business so that revenues will be spread evenly over the life of
the relevant contract rather than accounted for in the year that the contract is
signed.

It is estimated that amending the accounting policy to bring it in line with
that of Inenco would have produced operating profits of £0.5 million in the year
to 30 April 2007, such that the initial consideration would represent a multiple
of 7.5 times historic operating profit.

Saturn, based in Liverpool, is a commercial energy broker focused on the Small
and Medium Enterprise ("SME") sector.  It acts as agent for SME's to procure gas
and electricity from suppliers under medium and long term contracts and employs
11 people.  It was established in 1999 by its directors, Thomas McInerney,
Michael McInerney and Roger Askew.  Following the acquisition, Roger Askew will
be remaining as a director and Thomas and Michael McInerney will be retained on
a consultancy basis.

 Simon Rigby, Chief Executive Officer of Spice, said:

"The acquisition of Saturn enables us to extend the range of our energy
brokerage services into the SME sector where its expertise is valued both by
customers and suppliers.  We intend that Saturn will continue to operate as it
always has done but that its services will be enhanced by working alongside
Inenco. The market for the procurement of energy in the SME sector has
traditionally been fragmented and the acquisition of Saturn will provide us with
a strong and proven model to enable us to build our presence in this sector".

Roger Askew, Director of Saturn said:

"We believe that joining Spice will allow us to develop our business in the SME
sector and to continue to provide our customers with a high quality service
enhanced by the ability to utilise the wider resources of Inenco.  It should
provide us with an opportunity to consolidate our position in the sector".

Ends



Enquiries:

Spice plc                                                     Tel: [phone]
Simon Rigby, Chief Executive Officer
Oliver Lightowlers, Group Finance Director
Carl Chambers, Corporate Development Director

Financial Dynamics                                            Tel: [phone]
Billy Clegg
Caroline Stewart

KBC Peel Hunt                                                 Tel: [phone]
Julian Blunt


NOTES TO EDITORS



Spice plc

Spice is a utility infrastructure support services business. 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 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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