Interim Management Statement

PRE CLOSE TRADING STATEMENT

HomeServe plc today publishes the following statement prior to entering its close period for the year ending 31 March 2010.

We have seen a strong finish to the financial year with high levels of renewals and new policy sales across all our membership businesses. As a result, we now expect Group PBTA for our membership businesses to be towards the top end of market expectations when we announce our preliminary results in May.

UK Membership

In UK Membership, where trading continues to be strong, we expect to meet our customer growth target of 3.0% with gross new policy sales of 1.80m (2009: 1.83m). Renewals levels have remained high during February and March and we now expect a retention rate for the full year of 82.5% (2009: 83.0%) and total policies of 7.50m (2009: 7.05m).

We are also making good progress with our customer growth initiatives including the signing of a long-term agreement with GB Oils, the leading domestic oil distributor in the UK, to market oil heating breakdown cover.

Continental Europe

Our French business, Domeo, has had another good year and we expect to report customer growth of 13%, gross new policy sales in line with last year at 560k and a retention rate of 88.0% (2009: 87.9%) with total policies at the year-end of 1.90m (2009: 1.57m).

In SFG, our French warranty business, the infrastructure required to replicate our successful UK manufacturer warranty model is now in place and discussions with potential manufacturer warranty partners are underway.

Our Spanish business has performed well, with profits from our repair network business reinvested in marketing with Endesa, ending the year with over 90k policies (2009: 48k). We are also in the process of agreeing our marketing plans for next financial year with our new affinity partner Agbar, Spain's largest water company.

In Belgium, we continue to develop relationships with potential affinity partners and we recently conducted a small operational marketing test as we look to build a policy business in the region.

USA

In the US, we are seeing good take up levels with our new gas affinity partners, SEMCO Energy and Piedmont Natural Gas, as well as our Own Brand campaigns and we expect customer growth in excess of 25%, gross new policy sales of 270k (2009: 246k) and total policies of 740k (2009: 549k) for the year. As in 2009, we have seen another strong renewals performance with the retention rate increasing to 82.0% for the full year (2009: 80.0%).

Discussions with a number of utilities are progressing very well as we look to expand the number of partners in the US and our footprint of marketable households.

Summary

We are very pleased with the continued strong performance of our membership businesses and with an exciting pipeline of business development opportunities, HomeServe is well positioned for future growth.

A conference call for analysts will take place at 8am this morning, dial-in details for which can be obtained from Tulchan.

26 March 2010

Enquiries:

HomeServe plc

Richard Harpin, CEO

Martin Bennett, CFO

Mathew Wootton, Director of Finance

Tel: 01922 655 332

Tulchan Andrew Honnor Stephen Malthouse Tel: 0207 353 4200