Acquisition of German Sterilisation Company

Monday 13 December 2010

SYNERGY HEALTH PLC

("Synergy" or the "Company")

Acquisition of German Sterilisation Company

- Increases sterilisation capacity in Europe -

- Provides electron beam offering in Europe -

- Provides opportunity to expand into Eastern Europe -

Synergy Health (LSE: SYR), a leading provider of specialist outsourced support services to health related markets in the UK and Ireland, Europe and the Middle East, Asia and Africa, announces the acquisition of Gamma- Service- Produktbestrahlung GmBH "GSP") for an enterprise value of €9.5 million.

GSP is based near Dresden in the East of Germany and provides gamma and ebeam sterilisation services to the healthcare and industrial sectors. The business had revenues last year of €5.5 million and will enable Synergy to add electron beam processing to the service offering in mainland Europe. In addition GSP's proximity to Poland and the Czech Republic provides Synergy with a route to enter other markets in Eastern Europe.

Synergy's European sterilisation business grew by 7% in the first half of 2010 and is operating at capacity in Germany, where it currently has one facility. This acquisition will complement existing plans to expand sterilisation capacity in Venlo, Netherlands, as well as building a new gamma facility in Marcoule, France, and is in line with Synergy's strategy to extend its leadership of the European sterilisation market. It will also assist in the Company's efforts to break into Germany's decontamination market.

Richard Steeves, Chief Executive of Synergy Health plc, said:

"We recently signalled our intention to increase capacity and enter new European markets via both organic growth and bolt-on acquisitions. This acquisition builds on our position in Germany and opens up further opportunities in Eastern Europe. Germany could become a key market for Synergy and we are actively bidding for a number of decontamination contracts there."

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