RNS Number:6307S
Hercules Property Services PLC
8 March 2002



08 March 2002

Hercules Property Services PLC

Hercules to acquire residential property management company for £13.2 million

Hercules Property Services PLC ("Hercules", "the Group"), the property
management, consultancy and insurance group, announces that it has agreed to
acquire the entire issued share capital of Gross Fine (Holdings) Limited ("Gross
Fine", "the Company"), a leading London residential property management company,
for a maximum consideration of £13.2 million in cash and loan notes. In
addition, Hercules will be acquiring Gross Fine's freehold offices in the West
End of London for a further £2 million cash.  Completion of the transaction is
expected to take place later today.

The acquisition will further expand Hercules' residential property management
business, following the recent acquisition of Wood Managements Group Limited,
specialising in the management of blocks of flats in London.

Gross Fine is one of London's foremost residential property management
companies, with an extensive portfolio of management contracts in prestige
locations in Greater London, including Kensington & Chelsea, Westminster,
Mayfair and many others. Recent instructions include the new developments at
Imperial Wharf and Royal Woolwich Arsenal, as well as Chelsea Harbour.
Following the acquisition, Gross Fine will maintain its brand name and office
location. Ian Wilson, Chief Executive of Gross Fine, will remain with the
Company on a part time basis following completion.

Under the terms of the transaction, shareholders in Gross Fine will receive a
total maximum consideration of £13.2 million in cash and loan notes of which
£625,000 will be deferred and paid in two equal tranches in 2003 and 2004.
Gross Fine has a commercial property agency division; this division will be sold
back to the vendors for a total consideration of £200,000.  The transaction will
be funded totally by debt provided by Barclays Bank plc.

Gross Fine's profit before tax for the financial year ended 30 April 2001 was
£17,641 after non-recurring expenditure of approximately £763,000, from a
turnover of approximately £3.1 million. The Company's net assets on completion
will be approximately £330,000.

The Directors of Hercules believe that Gross Fine's revenue and profits will
increase as a result of Gross Fine's new business growing significantly both
from recently won instructions and new build developments.  While retaining its
name and independent operating identity the business will contribute to
Hercules' on going strategy of cross selling to its business opportunities,
within the Group.

Commenting on the acquisition, Larry Lipman, Chairman of Hercules said:

"Gross Fine is one of London's best known brand names in residential property
management. This deal is a significant step for Hercules in the expansion of our
residential property management interests.  With its impressive property
management portfolio and recent run of new business wins, Gross Fine is well
placed to enjoy strong growth in the coming years."

"Following this acquisition, we will manage over 40,000 units of residential
property in the UK, making us a significant force in the sector. We hope to use
this as a platform from which to build a commanding position in the sector over
the next few years, delivering strong recurring income and profitability to
Hercules."

For further information, please contact:

Hercules Property Services PLC

Larry Lipman, Chairman                            T: 020 8202 7276
Paul Davis, Commercial Director

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 property
developments. More information can be found on the internet at
www.hercules-group.co.uk.


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