25 June 2007

We are pleased to announce the acquisition of TA Horn Holdings Limited. TA Horn is a rapidly growing, North London-based gas installation and maintenance services provider to the social housing sector.

The acquisition will create the largest gas maintenance service provider to the social housing sector in Greater London. TA Horn’s base in Barnet and its North London coverage provide an excellent geographic fit with Kinetics’ existing operation Seaflame, which provides gas maintenance services to Central and South London local authorities.

Acquired by the vendors in 1986, TA Horn enjoys long-term contracts with local authorities and housing associations in North and West London and the surrounding Home Counties. Customers include the London Boroughs of Camden, Redbridge and Enfield, the district councils of Harlow and Epping Forest and the housing association, Homes for Haringey.

With today’s acquisition, the Kinetics Group will have annual sales of over £80 million and a workforce of over 900 employees. The acquisition enhances Kinetics’ position in tendering for larger contracts and gives increased flexibility in resource allocation.

Chris Cheshire, Group Managing Director at Kinetics Group Limited, said:

“TA Horn is a well-run business with a strong track record of growth. By combining it with Kinetics, the group will benefit from an enlarged customer portfolio reducing its dependency on any one contract. In addition, TA Horn’s long-standing customer relationships,excellent geographic fit, strong incumbent management and commitment to training and development will enhance all aspects of the Group.”