Interim Management Statement

FOR IMMEDIATE RELEASE 30 April 2010

THE DAVIS SERVICE GROUP PLC

Interim Management Statement

The Board of the Davis Service Group Plc (''The Group'') today issues its interim management statement for the period from 1 January 2010 and prior to its Annual General Meeting today at 11:00 am.

Trading in the year to date has been in line with our expectations with revenues broadly flat in the first quarter compared with the equivalent period last year. As anticipated, operating margins are higher, primarily as a result of the cost cutting measures taken last year. Profit before tax increased modestly in the first quarter despite higher interest costs resulting from the refinancing in 2009. Foreign exchange translation had only a marginal impact on reported results compared to last year.

We continue to experience generally tough trading conditions and have seen little overall sign that our markets are emerging from recession. However, where markets have shown signs of improvement we are seeing good advances in operating profit. In the Nordic region, Norway has increased its profit significantly in a stronger market including the benefit of the integration of the Facilities business we acquired in January, which has further improved our leading market position in this key segment. Elsewhere in the region, Sweden saw some profit improvement but Denmark is not yet showing growth. In the Continent region, there was a good increase in operating profit, with further progress in German Healthcare. Although that market remains difficult, we will take any action necessary to continue the improvement in margin. Our Dutch Workwear business is utilising its strong market position and delivered a good quarter. We opened our new operation in the Czech Republic to service our growing contract base and our German Workwear business benefited from the acquisition we made in January. In the UK and Ireland, volumes in UK hotels have improved, resulting in a significantly better performance in the first quarter than we have seen in recent years. Revenue in our healthcare business grew well but we continue to target improved financial performance in our decontamination contracts, which we started up in May 2009. Our workwear business held up well.

Our free cash flow was strong, ahead of last year, and with capital expenditure below depreciation we converted approximately 100% of our profit for the period to free cash flow in the first quarter. Net debt was moderately higher than year end as a result of the acquisitions we made in January and currency translation, but our balance sheet remains robust with the majority of our current financing needs available beyond 2016 and secured at interest rates fixed at below 5%.

Overall, the group is trading in line with the guidance we provided with the Full Year results in February, delivering higher margins, strong free cash flow and maintaining a robust balance sheet. The Group remains well placed to benefit further once growth returns to its markets.

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Note:

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. All financial information sourced from management accounts; operating profit and earnings per share stated 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.