Contract win and acquisition

Spice PLC 21 September 2007 21 September 2007 Spice plc Contract win and Acquisition Contract win in the USA - AT&T Inc ("AT&T") The Board of Spice plc ("Spice"), the provider of outsourced infrastructure support services to the Commercial, Public and Utility Sectors, is pleased to announce that Freedom, its Utility Services business, has been selected by AT&T to provide records and data management services in the United States of America. The contract is for an initial period of two years. The estimated turnover value per annum is expected to be £5 million. Freedom will be working alongside client staff from AT&T in AT&T's offices across four US states (Mississippi, Florida, Tennessee and North Carolina), as part of an integrated project delivery team. Simon Rigby, Chief Executive Officer, commented: "I am delighted that the Spice outsourcing model is to be applied in the USA. This is an extremely significant contract for the development of Spice and I am pleased it is in an area we know so well and that our staff will be working in the offices of one of the worlds largest utility companies. I have long been of the opinion that our contacts would naturally take us abroad. It is an indication of the strength in depth in our Freedom business that we have negotiated and mobilised for this contract during a period of record growth here in the UK." Acquisition of KMN Group Limited ("KMN") Spice is also pleased to announce the acquisition of KMN for an initial cash consideration of £0.75 million. A further sum of up to £0.1 million is payable based on the excess of net assets over £0.2 million. KMN is based in Leeds and provides specialist professional civil and structural engineering design and management services. Turnover for the year ended 30 November 2006 was £0.9 million. Net assets at 30 November 2006 were £0.2 million. KMN becomes part of Freedom's Consultancy Service Island within its Utility Services Division. Simon Rigby, Chief Executive Officer, commented: "KMN will bring additional management skills and new clients to our Utility Services Division and will further strengthen our service structure and reinforce our position as a market leader within the UK. With the increased demand for these services throughout the UK, we are well placed to win further work." Ends Enquiries: Spice plc Tel: 0113 384 3838 Simon Rigby, Chief Executive Officer Oliver Lightowlers, Group Finance Director Carl Chambers, Corporate Development Director Financial Dynamics Tel: 020 7831 3113 Billy Clegg Caroline Stewart KBC Peel Hunt Tel: 020 7418 8900 Julian Blunt NOTES TO EDITORS Spice plc Spice is a support services business operating in the Commercial Services, Public Services and Utility Services sectors. 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 commercial 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. This information is provided by RNS The company news service from the London Stock Exchange
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