ISG.L Regulatory News (ISG)

Interior Services Group plc

("ISG" or the "Group")

AGM Statement and Trading Update

ISG, the international construction services group, today issues this trading statement covering the period 1 July to 3 December 2010, ahead of its AGM later today.

The ISG Board is pleased to announce that trading for the period has remained resilient. Rising revenues in the period are countering the pressure on margins. We are benefiting from an 80% weighting towards the private sector.

Despite the reduction in the number of larger sized projects, our order book for delivery in the current financial year has been maintained at £520m (November 2009: £502m), with the total order book standing at £700m (November 2009: £755m). ISG's balance sheet remains sound and we expect to finish the period with a strong net cash position in excess of £30m (December 2009: £32m).

In our London Fit Out business, we have continued to see a steady pipeline of opportunities of small to medium sized projects, but with a highly competitive market place margins remain under pressure. Our Retail Fit Out and Food Retail businesses, through their focus on financial and food retail sectors, have received strong allocations under their frameworks for the calendar year 2011.

We expect our UK Construction business to maintain revenues in line with prior year, but at lower margins.

Our overseas businesses continue to see growth from our blue chip international client base. In Europe we have enjoyed a strong recovery in the Parisian office market, as well as delivering a number of projects to key clients across our European network. In Asia we expect to maintain revenues in line with the last financial year. In the Middle East we have seen increased demand from our international clients both in Dubai and Abu Dhabi.

While our markets remain highly competitive, we remain confident of meeting the Board's expectations for the full year. We continue to pursue growth opportunities both organically and by acquisition in our three principal markets of Fit Out, Retail and UK Construction.

Shareholders will next be updated on the Group Interim results for the six months to 31 December 2010 on 8 March 2011.

3 December 2010