Homeserve Acquires Digital Insurance Services Limited

Homeserve plc today announces the acquisition of Digital Insurance Services Limited ('DIS') for initial consideration of £3.0 million on a debt free cash free basis. Further performance-related cash consideration of up to £1.0 million is payable in 2007 and up to £8.0 million in 2009 based on future operating profit achieved.

DIS is a leading provider of home insurance contents claims validation and fulfilment services. DIS currently has contractual arrangements with eight leading household insurers and operates from Great Yarmouth with 45 employees. At 30th April 2006 DIS had gross assets of £0.5 million and in the year ended 30th April 2006 was breakeven on reported turnover of £3.5 million.

The acquisition of DIS represents a strategic move by Homeserve into the home insurance contents claim validation market allowing it to extend its offering to insurers to include contents validation services.

Ian Carlisle, CEO of Homeserve Emergency Services commented:

"The acquisition of DIS provides Homeserve with a unique capability to offer our UK insurer customers a market leading contents validation service which, combined with our Emergency Repair multi-trade businesses, provides a complete solution for all household repair and contents claims."

26 October 2006

Enquiries:

Homeserve plc
Andrew Belk, Group Finance Director
Brian Whitty, Chairman
Tel: 01922 427903

Tulchan
Andrew Honnor
Stephen Malthouse
Tel: 020 7353 4200