RNS Number:4084F Shanks Group PLC 30 June 2006

Friday 30th June 2006

Company Announcement

Shanks Group plc: Euro63 million acquisition of Dutch Group: Smink Beheer BV

Shanks Group plc, a leading European waste management company, has today announced the acquisition from the Smink family of the entire share capital of Smink Beheer BV (Smink) for a gross consideration of Euro86m in cash, Euro63m net of the cash in the acquired entity. An additional Euro2.5m is payable upon expansion of the scope of a permit for the company's landfill activity.

Smink is an established integrated waste collection, recycling and landfill disposal business based in Amersfoort, east of Utrecht, in the Netherlands, with expertise in commercial and industrial waste management. There is also an ancillary infrastructure building activity (eg roads and drainage) operating locally. Smink employs some 170 people and processes approximately 0.5m tonnes of waste annually.

Smink's last published results for the year ended 31 December 2005 showed a profit before tax of Euro13.5m which included one-off gains totalling approximately Euro4.8m. Gross assets were Euro51.0m.

Commenting on the transaction, Shanks Group plc Group Chief Executive, Michael Averill, said: "We are delighted with this acquisition which expands our geographic coverage eastwards from our strong presence in the Randstadt area. As the Smink solid waste activities are similar to our existing business we will serve our target customers over a wider area. The acquisition is expected to be earnings enhancing in the current year."

For further information contact:

Michael Averill, Group Chief Executive Fraser Welham, Group Finance Director Shanks Group plc Telephone +44 (0) 1628 554920

Or

Ginny Pulbrook Citigate Dewe Rogerson Telephone +44 (0) 20 7282 2945

Ends

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