PKW Parkwood Hldgs.

Acquisition PARKWOOD HOLDINGS PLC ("Parkwood" or "the Group") ACQUISITION OF ECOLOGICAL SCIENCES LIMITED Parkwood is pleased to announce that on 31st January 2005 it has completed the acquisition of the entire issued share capital of Ecological Sciences Limited (the "Acquisition"), a leading specialist in the field of processing and recycling of organic waste. The consideration payable under the share purchase agreement is �660,000 payable in cash upon completion plus deferred consideration of �50,000 payable six months after completion. The net assets disclosed in the last financial statements at 31 December 2003 were �267,067 with a profit before tax for that year of �98,000. The Directors believe that the business will have a limited impact on the profitability of the Group during the current financial year. However, the Acquisition will achieve Parkwood's strategic objective in diversifying the Glendale business into the green waste recycling market. A significant part of the Ecological Sciences Limited's business is the performance of a green waste contract which runs to 2010. The Acquisition, together with a green waste recycling contract with an existing client which has recently been signed, is expected to bring the total turnover of our new green waste business to � 1.3 million. For further information please contact: Parkwood Holdings plc Charles Bithell, Finance Director 01772 627111 Notes for Editors; Parkwood Holdings plc specialises in providing outsourced service to the public sector across England and Wales under long term contracts. Its main areas of operation are as follows: * Glendale - The management of parks and open spaces for a predominantly local authority client base. This operation is currently being expanded into related "green" businesses under the "Think Green - Think Glendale" strapline. * Parkwood Leisure - The management of a diverse range of leisure facilities, again predominantly for local authority clients. This Division is also the operator or provider of services under most of the Group's contracts won under the PFI/PPP procurement process. * Parkwood Healthcare - The provision of non emergency patient transport to NHS Trusts under the "National Ambulance Service" banner, together with the provision of nurses on an agency basis to both NHS Trusts and the private sector. * Parkwood PFI Projects - The provision of PFI, PPP and other similar bids on behalf of Joint Ventures and the Group, generating long term operating business. This division is also responsible for the project management of contracts on behalf of the Group's associates and JVs and management of other funds such as the lifecycle funds associated with the project agreements. END

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