Contract extension with the Ministry of Defence

News Release

14 August 2013

CONTRACT EXTENSION WITH THE

MINISTRY OF DEFENCE

Interserve's subsidiary, Landmarc Support Services (Landmarc1), has been awarded a contract extension worth c. £110m with the Ministry of Defence (MoD) until July 2014, with the option to extend for up to a further six months until February 2015.

Landmarc will continue to support the Defence Infrastructure Organisation (DIO) to manage military training facilities across the MoD's 160,000 hectares of built and rural UK training estate, a position it has held since 2003.

Supporting around 7.5 million training days per year, Landmarc delivers consultancy, management and operation of training areas and ranges, explosives safety, built and rural estate management (including environmental and conservation support), catering, information management, administration services, project and commercial property management.

The contract covers over 120 sites, including more than 8,000 buildings and 12,000 targetry items worldwide. These range from small battery powered targets to large electrical moving artillery targets, which are controlled remotely.

Steve Utley, Project Director at Landmarc said: "For the past decade, we have been partnering with the MoD to ensure that the training estates deliver a safe and sustainable place to train for our armed forces. We are also committed to working closely with the people in the communities that live and work around them.

1 Landmarc is owned 51% by Interserve and 49% by Pacific Architects & Engineers (PAE).

 "Initiatives we've launched include Landmarc 100, our rural business innovation scheme, supporting BiTC by providing a Rural Business Connector in Northumberland and a new rural hub network for local entrepreneurs, all of which are designed to make a positive social and economic impact across the estate and surrounding areas. We look forward to our increased involvement and the opportunity to contribute to the continued success of the estate across the UK."

Adrian Ringrose, Interserve CEO commented: "Interserve has been working in the defence and security market for more than 25 years, providing integrated, added-value service solutions that enable the MoD to concentrate on its core activities, while improving efficiencies.

"Partnering with the MoD requires a more intelligent approach to support services and contracts like these demonstrate the full range of our service capability. This is not only about providing support to MoD operations at facilities both here in the UK and overseas, but also the ability to support the vital training that is needed to prepare the military for operational success."

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For further information please contact:

Matt Hickman, Investor Relations Manager 0118 960 2280

Robin O'Kelly, Director of Communications 0118 960 0123

Steffan Williams/Ian Brown/Michael Kinirons, Capital MSL 0207 307 5334

About Interserve

Interserve's vision is to redefine the future for people and places. We are one of the world's foremost support services and construction companies, operating in the public and private sectors in the UK and internationally. We offer advice, design, construction, equipment, facilities management and frontline public services. Interserve is based in the UK and is listed in the FTSE 250 index. We have gross revenue of £2.3 billion and a workforce of over 50,000 people worldwide.

www.interserve.com

For news follow: @interservenews

About Landmarc Support Services Limited

Landmarc is the international provider of choice for integrated training and sustainable infrastructure support solutions. The company is jointly owned by two leading businesses in their field - Interserve, a major player in the international support services and construction market and American firm PAE, one of the world's largest providers of integrated global mission services. www.landmarcsolutions.com / twitter:@landmarcNEWS

For facilities management updates follow: @INT_FM

About Pacific Architects & Engineers (PAE)

PAE is a US-owned business operating in 45 countries, delivering services in Expeditionary Construction & Logistics, Operations & Maintenance, Training & Capacity Building and Foreign Assistance and Global Stability. In July 2013, PAE acquired the business of Computer Science Corporation's (CSC) Applied Technology Division, which owns the minority stake in Landmarc.

www.pae.com