IPEL.L Regulatory News (IPEL)

Impellam Group plc ("Impellam" or the "Company" or "Group")

Carlisle Support Services ("Carlisle") update

As reported in December, our non -core business, Carlisle Support Services, had two long term contracts which had proven to be operationally complex, badly priced and financially onerous. We are pleased to announce that we have completed the exit of one of those contracts on the terms expected.

 However, we continue to experience substantial operational challenges with the second contract. Planned reengineering and restructuring of the service due to be completed at the end of the first quarter this year are proving difficult to finalise. As a consequence, additional operating losses of up to £9.8m are estimated over the remaining four year contract life in addition to those announced in December 2013. Negotiations in respect of a range of options, including exit of the contract, are ongoing.

Our preliminary results will be released at the end of February and we are pleased to say that results for the Group, save for exceptional items, will be in line with the trading statement released on 16 December. A final dividend of 7p per share will be recommended.

Enquiries: For further information please contact the appropriate individual below.

 Impellam Group plc

Andrew Wilson

Julia Robertson

Andrew Burchall Tel: 01582 692658

Cenkos Securities plc

(Nominated Advisor and Broker to Impellam)

Nicholas Wells Tel: 020 7397 8900

Camilla Hume

Note to Editors:

 Impellam Group plc conducts business primarily in the UK and North America, with smaller operations in Australia, Ireland, New Zealand and mainland Europe. The Group employs nearly 6,000 people, including 2,500 managers and consultants and more than 3,500 support services workers, across a network of 230 branch and regional offices. The Group operates more than 15 specialty brands across a broad range of staffing sectors which are complemented by businesses in the outsourced support services sector. Impellam Group is ranked 17th on the Staffing Industry Analysts' 2012 Top Global Staffing Companies List.