Statement re UK business

HomeServe plc update

Over the past month, HomeServe has been undertaking a comprehensive review of its UK telephone sales operations and procedures including commissioning an independent report from Deloitte. This review showed that there were cases where its sales processes did not meet the Company's required standards.

Following this review, the Company has therefore decided to suspend all telephone sales and marketing activity. The Company's service to customers making a claim or renewing their policy is unaffected by this decision.

HomeServe has commenced an immediate re-training programme for its telephone sales staff and is developing new scripts. This will mean that from Tuesday 1 November the Company will be in a position to recommence taking 'inbound' calls from customers to buy its products.

The Company will not recommence 'outbound' sales calls until relevant staff have been through a comprehensive retraining programme and until it is confident that all sales procedures meet the standards it expects.

Throughout the course of this review, HomeServe has been in regular dialogue with its regulator, the FSA, and they have been fully informed of the measures that have been implemented.

HomeServe plc will, as planned, announce its results for the six months ended 30 September 2011 on 22 November 2011 and remains on track to achieve the consensus market forecast profit for the full year ending 31 March 2012.

Richard Harpin, Chief Executive, said: "We are determined to ensure customers receive the highest standards of service and we have therefore taken swift action to address the issues identified by our review. We have commenced a programme to re-train staff. We will resume marketing once we are confident that our sales processes meet the standards that we and our customers expect".

Enquiries:

HomeServe plc Tel.No. 01922 427979

Richard Harpin, Chief Executive

Mark Jones, Head of Investor Relations

Tulchan Group Tel.No. 0207 353 4200

Christian Cowley

Martin Robinson