Interim Management Statement

RPS Group plc

"RPS" or "the Group"

Interim Management Statement

First quarter trading affected by severe weather in Australia; three acquisitions completed; good prospects for growth in second half; balance sheet remains strong.

RPS remains well positioned in markets of fundamental importance to the global economy, with significant long term growth potential. Some of these are beginning to show signs of recovery. However, as announced previously, Group trading in the first part of the year was held back by the disruptive effect of flooding and cyclones in Australia. In consequence, the Group's first half year profits are likely to be similar to those in the same period in 2010. As the impact of the severe weather in Australia reduces, as drilling resumes in the Gulf of Mexico and the acquisitions made in February and March begin to contribute, the second half should produce growth sufficient to enable current market expectations for 2011 to be achieved. (Note 1).

Energy

Conditions in the traditional oil and gas sector and the unconventional gas market were generally encouraging in the first part of the year. The first licences have been granted for the resumption of deep water drilling in the Gulf of Mexico; we expect to benefit from this in the second half. Recent unrest in North Africa and the Middle East has affected a number of our current and prospective projects in that region. Nonetheless, we expect client activity levels internationally to build during the remainder of the year.

On 18 February 2011 we announced the acquisition of Evans-Hamilton Incorporated ("EHI"), a US based business, for a maximum consideration of US $8.67 million (£5.5 million). It provides oceanographic consulting and marine environment measurement services, as well as carrying out environmental and coastal process studies and assisting clients with offshore environmental compliance. EHI should also benefit from the resumption of activity in the Gulf of Mexico.

On 2 March 2011 we announced the acquisition of Nautilus Ltd and Nautilus World Ltd (together "Nautilus"), a UK/US based business providing geosciences and petroleum engineering training to the oil and gas industry, for a maximum consideration of £18.6 million. During 2011 Nautilus is programmed to deliver over 300 courses worldwide. We see significant opportunity to expand our training activities by linking Nautilus with our large client base.

With increasing levels of activity from many of our clients and these two acquisitions, we continue to expect our Energy business to achieve good growth during the year.

Planning and Development

Australia

The development of our Australian board has continued, with the appointment of an independent non-executive chairman and two additional executives. It has taken responsibility for that part of the Australian Energy business which provides clients with environmental, climatic and oceanographic data. This is, therefore, now being managed as part of the Australian Planning and Development business. (Note 2).

Infrastructure markets, particularly related to energy and other natural resources projects, remained strong, whilst activity in the commercial development market continued to be subdued, primarily due to lack of funding. The floods in January, followed immediately by cyclones, significantly disrupted some of our clients' activities, causing a severe impact on our trading in the early months of the year.

Those clients have, however, recently begun to re-establish project requirements and we have also become involved in the early stages of reconstruction work. Our earlier view that we would build back to a more normal trading position during the course of the year remains realistic.

Since August 2009 we have owned 50% of Terranean Mapping Technologies Pty Ltd ("Terranean"), a market leader in Australia in high technology surveying, mapping and geographical information systems. RPS currently works with Terranean in respect of projects relating to property development, mining and coal seam gas industries in Australia. As has been our intention for some time, we have now acquired the 50% of Terranean we did not own. A$1.76 million (£1.13 million) was paid in cash at completion on 31 March, with a further A$0.94 million (£0.6 million) payable over the next three years. In the year ended December 2010 Terranean had revenues of A$7.9 million (£5.1 million) and profit before tax of A$1.56 million (£1 million). At 31 December 2010 the gross and net assets of the business were A$2.6 million (£1.69 million) and A$1.2 million (£0.8 million) respectively. The two directors of the business were also the shareholder/vendors and are remaining with RPS to assist further in the development of these activities. As a result of this transaction we are required to revalue upwards the 50% of Terranean we owned previously by about £1.5 million.

UK and Ireland

The process of developing the management and marketing activities in this merged business has proceeded positively, enabling further business opportunities to be identified and efficiency savings to be made.

In Ireland, activity in the first quarter was reasonably encouraging. However, as a result of continuing poor economic and financial news, it appears further reductions in public sector spending are being made by the new Government on an "ad hoc" basis. In anticipation of the effects of this we have reduced our cost base further. This included the reduction of rented office space, which has required one off exit payments. Whilst we continue to win market share and have a good short term order book, we cannot yet preclude further contraction of this business.

In the UK, activity levels showed some improvement during the first quarter. We continue to focus on those markets and clients which have funded and fundable projects, such as the provision of energy infrastructure, including renewables, and retailers planning to develop capacity for their own future use. Overall, the market currently appears more stable, although until economic recovery becomes stronger and the effects of Government spending cuts on our clients become clearer, uncertainty will remain.

Environmental Management

Our businesses in this segment have shown remarkable resilience during the last two years. Despite coming under significant pricing pressure, they have delivered an excellent trading performance and sustained a good margin. This has continued into the first part of 2011. We have begun to benefit from increasing AMP5 investment from our UK water company clients. Our health and safety, occupational health and risk management activities remain at an encouraging level. Our Dutch business also performed well in the first quarter. Overall, it appears we may achieve good growth in this segment of the Group in the current year.

Debt and Funding

Our balance sheet remains strong. Net bank debt at the end of March was £36.6 million (31 December 2010: £31.5 million), after investing £12.2 million in acquisitions in the quarter. Our facility of £125 million with Lloyds Banking Group remains in place until July 2013.

Board Composition

Roger Devlin and Karen McPherson step down from the RPS Board today. The Board is greatly indebted to them for the important contribution they have both made in recent years. The recruitment process to replace them continues.

Brook Land, Chairman, commented:

"We have come through the exceptionally challenging circumstances of the last two years in good shape. Our performance in the first part of 2011 was affected by the impact of the severe weather in Australia. However, as this effect reverses, with continued growth in our energy and environmental management activities and a contribution from our recent acquisitions, the second half should see an improved performance. So long as economic recovery continues, we are optimistic this is likely to mark the beginning of a new period of growth for RPS."

6 May 2011

RPS is an international consultancy providing advice upon the development of natural resources, land and property, the management of the natural and built environments and the health and safety of people. We have offices in the UK, Ireland, the Netherlands, the United States, Canada, Brazil, the Middle East and Australia/Asia Pacific and undertake projects in many other parts of the world. The Group is a constituent of both the FTSE 250 and FTSE 4 Good Indices.

Note 1: This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of RPS Group plc. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. The continuing uncertainty in global economic outlook inevitably increases the risks to which the Group is exposed. Statements in respect of the Group's performance in 2011 in the year to date are based upon unaudited management accounts for the period January to March 2011. The Board considers market expectations for 2011 are best defined by taking the range of forecasts of profit before tax and amortisation for the full year published by analysts who consistently follow the Group. The current range of forecasts of which the Board is aware is £47.2 to £51.5 million. Nothing in this announcement should be construed as a profit forecast.

Note 2: Starting with the 2011 Interim Results the results of these activities will be presented as part of the Australian Planning and Development sub-segment. The results of the Australian Planning & Development and Energy segments will be revised to account for this change and revised overhead allocations for the six months ended 30 June 2010 and the year ended 31 December 2010 as shown in the tables below.

Segmental results as reported for the year ended 31 December 2010

Revised segmental results for the year ended 31 December 2010

Reallocations for the year ended 31 December 2010

Segmental results for Planning and Development Australia and Energy as reported for the six months ended 30 June 2010

Revised segmental results for Planning and Development Australia and Energy for the six

months ended 30 June 2010

Reallocations for the six months ended 30 June 2010