Disposal of Björnkläder

FOR IMMEDIATE RELEASE 3 December 2010

THE DAVIS SERVICE GROUP PLC

Disposal of Björnkläder

The Board of The Davis Service Group Plc ("the Group") is pleased to announce the disposal of Björnkläder AB, its Swedish direct sales business, to Litorina, a private equity company based in Sweden.

The transaction values Björnkläder at £28.5 million, which will be received in full at completion, expected to be before 31 December 2010, subject to usual competition clearances. In the twelve months ended 30 October 2010, the business reported revenue of £44.4 million and operating profit of £2.4 million and net assets (excluding cash balances) at that date of £20.0 million. The disposal is expected to result in a small pro forma dilution to earnings per share in 2011.

Peter Ventress, Chief Executive of the Group, commented, "This disposal is a further important step in our drive for stronger growth and increased returns for shareholders. With other parts of our business offering greater opportunity for higher growth and returns, our recent strategic review identified Björnkläder as a non-core business for the Group. We will be focussing our investment on our key growth markets of Workwear, Mats, Washroom & Cleanroom across all regions and in our UK Hotel and Healthcare linen businesses. We wish the management and employees of Björnkläder all the very best for the future."

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Notes:

1. Davis Service Group is a focused European textile maintenance business with leading positions in most of the countries in which it operates. As a focused business we are able to mobilise our resources to drive our strategies in our core area of expertise.

2. Sourced from management accounts; operating profit before exceptional items and amortisation of customer contracts and intellectual property rights.

3. Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.