PHSC Phsc Plc

    PHSC PLC

                                        Disposal of Subsidiary

PHSC  plc  announces the disposal of its Health and Safety Click Limited (HSC)  subsidiary  on  31
January  2007. This course of action was noted in the interim report, where the Board stated  that
it  had  determined  that such a disposal would be in the best interests of  the  group.  HSC  was
acquired in the full knowledge that further investment would be required to enable the company  to
reach  its  potential, and various measures were taken to facilitate this. Whilst the HSC  concept
remained  an attractive one, the Board took the view that PHSC plc should concentrate its  efforts
on  maximising  shareholder value from companies in the sector that are already sufficiently  well
established   to   be  cash-generative.    Under  PHSC  ownership,  HSC  was   not   forecast   to
become  significantly profitable over the next two years and thus does not fit this model. Working
with  HSC  since  August  2005 has given valuable insights into the ways  that  an  internet-based
provider  can  deliver a service, and the Board believe that a faster route and certainly  a  more
cost-effective  way into this particular market can be achieved by developing web-based  offerings
through  other  Group subsidiaries. HSC made a trading loss of � 26,000 in the  current  financial
year  to date. Under the agreement, the new owner of HSC has redeemed loans totalling �14,275 that
were  already  in  place before the company was originally acquired by PHSC plc. Furthermore,  the
terms of the disposal provide that PHSC plc are entitled to 33% of any profits generated by HSC in
the next twelve months, and 25% of any profits in the twelve months thereafter.


For further information: -

PHSC plc-
Stephen King (Tel: 01622 717 700)
Stephen.king@phsc.co.uk
www.phsc.plc.co.uk

Ruegg & Co Limited -
Gavin Burnell  (Tel: 020 7584 3663)

Hichens, Harrison & Co. plc -
Daniel Briggs (Tel: 020 782 7776)



                                                                
PHSC plc



                                                                

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