RNS Number:1017R
Hercules Property Services PLC
7 February 2002

07 February 2002


        HERCULES ACQUIRES HOUSING ASSOCIATION PROPERTY INSURANCE BROKER

Hercules Property Services PLC ("Hercules" or "the Group"), the property
management, consultancy and insurance group, announces that it has acquired
D.O.R (Northern) Limited ("D.O.R"), a Housing Association property insurance
broker, for a total consideration of up to £4 million.

The acquisition will add further to Hercules' already significant share of the
Housing Association insurance market.  It brings the total amount spent on
acquisitions over the past 18 months to over £40 million and is part of the
Group's continuing strategy to expand and integrate services, and dominate niche
markets.

D.O.R is a Macclesfield based insurance broker owned by David and Olga Owen.
Together with FARR plc, Hercules' current Housing Association insurance
subsidiary, the enlarged Group will represent approximately 45 per cent of the
Housing Association insurance market.

D.O.R's profit before tax for the financial year ended 31 October 2001 was
£663,000 from a turnover of £1.1 million, with net assets of £200,000 at 31
October 2001.  David Owen will remain on the board of D.O.R following the
transaction.

Under the terms of the deal, D.O.R will receive an initial consideration of
£2.4 million (i.e. 60% of the total consideration) in loan notes.  There will be
a maximum deferred consideration of £1.6 million in loan notes.  £1.2 million of
the deferred consideration will be conditional on profit before tax for the year
to 31 January 2003 being no less than £880,000.  If profits fall below this, the
deferred consideration will be reduced on a £5 of consideration for £1 of
profits basis.

The remainder of the deferred consideration is dependent on D.O.R's top six
clients being retained for a period of two years from completion.  If any of
these clients are lost, there may be a reduction of up to £400,000 in the
deferred consideration.

Commenting on the acquisition, Rob Plumb, Managing Director, Hercules Property
Services PLC said:

"Hercules acquired FARR in 2000 with the aim of expanding into another area of
the property insurance market.  The acquisition of D.O.R will serve to
strengthen Hercules' strategy and position in the UK Housing Association
insurance market of which we now control nearly half."

For further information, please contact:

Hercules Property Services PLC
Rob Plumb, Managing Director                                   T: 020 8420 7600
Paul Davis, Commercial Director                                T: 020 8202 7276

GCI Financial
Rupert Ashe / Roger Leboff / Caroline Massey                   T: 020 7072 4200

Notes to Editors:

Hercules Property Services PLC (HPS.L) is a leading property insurance,
management and consultancy group.  It provides a comprehensive range of
specialised services, including: insurance to the commercial and residential
property sectors; property management; and advice on commercial developments.
More information can be found on the internet at www.hercules-group.co.uk.

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