14 December 2009

Mears Group PLC

("Mears"or "the Group")

200 million of new contract winsacross all divisions

Mears is pleased to announcetheawardof newcontractsacrossallthreeoperatingdivisions.

Theawardshavean initialvalueof 113millionandaresubject to contract extensionstaking the total worth toin excess of200 million.This takes the aggregate totalofnew contracts awarded in theninemonths since Mears announced its preliminary results toin excess of550millionwitha potential worth in excess of 650 million,subject to contract extensions, which wouldresultin a record year for the Group in terms of both new contract awards and order book.

Social Housingdivision

Wehave been awardednewcontracts amounting to 93millionthat have a potential worthin excess of180millionsubject to contract extensionsasset outbelow:

CrawleyBorough Council

A10year partnership with Crawley Borough Council inWest Sussexto provide responsive repairs and voids services. Crawley Borough Councilhas been a client of Mears since 2004.The contract sum is valuedat 30 millionforthe 10 year period.

ColchesterBorough Council

Afouryear partnership to provide Decent Homes servicesto the housing stock managed by Colchester Borough Homes. The contract is valued at 10 million for thefouryear periodwith an option to extend to six years giving a value of 15 million.

CanterburyCity Council

Afiveyear partnership to provideresponsive repairs and voids services to Canterbury City Council. The contract includes external decoration programmes and disabled aids and adaptation improvements. The contract is valued at 28million for the initialfiveyear periodwith a performance option to extend to 15 years increasing the value to inexcess of 82 million. We are the sole provider appointed to provide services to the Council's 5,298 homes.

Thanet District Council

Afiveyear partnership to provideresponsive repairs and voids services to Thanet District Council, which was jointly procured with Canterbury City Council. The contract includes external decoration programmes and disabled aids and adaptation improvements. The contract is valued at 13million for the initialfiveyear period andalso includes a performance option to extend to 15 years giving a value ofin excess of 40 million. We are the sole provider appointed to provide services to the Councils 3,116 homes.Thanet District Council has been a client of Mears since 2004.

BirminghamCity Council

Afive and a halfyearpartnershipto provide gas maintenance services to the central area ofBirmingham's housing portfolio. This contract is worth 12 million.This is an extension to the response repairs service we currently provide to the same area for the City.

Domiciliary Care division

The Group's Domiciliary Care divisioncontinues to build a presence across a growing geographical area. The division is continuing to experience a trend of Local Authorities to procure services from fewer and larger care providers.

NewportCity Council

A three year contract commencing in 2010 with the potential to provide around 1,500 hours per week. This is our second tender success in Wales and there are several other opportunities in our tender pipeline. Wales has high levels of domiciliary care provided direct by local authorities and we anticipate significant growth opportunities in the future.

PeterboroughCity Council and NHS Peterborough

We established agreenfieldsite inPeterboroughthis year, with the existingCross Keys Homes partnership with Mears.This was one of the very first pilot sites in the UK established by Mears to deliver on the Government initiative of acare and repairservice where the total needs of residents and service users was placed at the heart of a service.The positive startwillbe built on following the award of contracts in bothdomiciliary care and higher end work fromPeterboroughPCT.

Darlington

Atwoyear spot contract with a possible extension of up to a further two years. Thisshouldgrow to over 1,000 hoursper weekin the area from the current very small levels of work that we have with the Authority.

Mechanical and Electrical division

The M&E division has been successful in being awarded works valued at 20millionwhichare to bedeliveredin the main in2010.

13 million of the 20 million relates to a contract to provide M&E infrastructure and fit out works on theAthletesVillagefor the 2012 London Games. TheAthletesVillagewill become a mixed community of Social and Part Ownership homes for rent and some private homes for sale post the Olympics and help regenerate the area and leave a long term legacy after 2012. These awards increase the total works on the Village to date to 22 million when added to a previously awarded contract.

Commenting on the Group's contract wins,Bob Holt, Chairman, said:

"In spite ofcurrent speculationon public spending cuts Mears continues to secure long term partnerships with public sector clients whodemand cost effective value for money services. We continue to be highly selective throughout our tender process which ensures that we commit to high levels of customer service, long term employment opportunities for our staff and partners and operating margins at the very top end of the sectors in which we operate.

"I cannot emphasise enough the tremendous amount of effort and commitment that Mears provides to it's growing customer base.

"I look forward to bringing you further news in the future."

About Mearswww.mearsgroup.co.uk

Mears is a leading social housing service provider to Local Authorities and Registered Social Housing Landlords in theUKand has a growing presence in the domiciliary care market, providing personal care services to people in their own homes delivered as part of outsourcing arrangements with Local Authorities.

Mears employs in excess of 8,000 people and provides maintenance and repairs services to 500,000 homes nationwide. Mears also provides domiciliary care to 13,500 service users each week