Update on Legal Case

Issued by Citigate Dewe Rogerson Ltd, Birmingham

Date: Wednesday, 27 July 2011

AUTOCLENZ

("the Company" or "Autoclenz")

UPDATE ON LEGAL CASE -AUTOCLENZ LTD v. BELCHER AND OTHERS

The above case was referred for review by The Supreme Court on 11/12 May, 2011.

On 27 July 2011, The Supreme Court upheld the original ruling dated 13 October, 2009 that the valeters in question were employees of the Company. The full judgment can be found at www.supremecourt.gov.uk.

The issues of employment law involved in this case have been complex. In addition, the findings of the Employment Tribunal and Court of Appeal are specific to the working requirements of one particular customer to whom this type of working practice related and involved, at that time, 20 of our operators from a total of over 1,000 operators within our business.

Whilst the decision is disappointing for Autoclenz, the Company will now enter into negotiations with the representatives of the individuals concerned and an update will be included in the Company's Half-year results to 30 June 2011.

As previously stated, the Company has made appropriate and reasonable accruals in its 31 December 2010 accounts based on the Board's best estimate of the expenditure required.