Acquisition

19/12/2005

The BSS Group PLC ('BSS or 'the Group') the leading distributors of heating, plumbing and pipeline equipment to the industrial and domestic construction markets is pleased to announce the acquisition of A Warren & Sons Limited ('Warrens').

Warrens is a major supplier of industrial products to the construction industry and will enhance the range and depth of products supplied by the Group's Industrial Division, through its branches in Oldham, Birmingham, Leeds and East London.

BSS has paid £14.0m in cash on completion with a further amount of up to £0.75m maximum, payable in cash depending upon the working capital at completion.

Gross assets of Warrens were £8.2m as at 31 December 2004 Operating profits for the year ended 31 December 2004 were £1.5m. The acquisition is expected to be earnings enhancing in the first full year after completion.

Commenting on the acquisition Gavin Slark, Chief Executive with effect from 1 January 2006, commented:

'The acquisition of Warrens is firmly in line with our stated strategy of organic growth and bolt-on acquisitions. Warrens is an excellent merchant in the Industrial Market and will add to our current strength in the sector.'

For further information, please contact:

The BSS Group PLC
Gavin Slark, Chief Executive
Roddy Murray, Finance Director
Tel: 0116 - 256 7006

Hogarth Partnership
Andrew Jaques
Rachel Hirst
Charlie Field
Tel: 020 - 7357 9477