LVD.L Regulatory News (LVD)

Press announcement

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

13 January 2011

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

RESPONSE TO ANNOUNCEMENT FROM ASHTEAD GROUP PLC ("ASHTEAD") AND TVH SERVICES N.V. ("TVH")

The Board of Lavendon notes the announcement issued today by Ashtead and TVH in relation to their interest in a possible joint cash offer for the Company at 115 pence per share.

The Board believes that the approach from Ashtead and TVH is opportunistic and significantly undervalues the Company. Accordingly, the Board has no hesitation in unanimously rejecting the proposal.

Since the announcement of the Group's Interim Management Statement on 16 November 2010, trading has been satisfactory and accordingly the Board expects the results for the full year to be in line with its expectations.

Group revenues for the 6 months since the half year, excluding ex-fleet equipment sales, increased by 3% over the same period in the prior year, reducing the rate of revenue decline for the year ended 31 December 2010 to 3% (2% on a constant currency basis), compared with the same period in the prior year.

Cash generation has remained strong and the Group's net debt has continued to reduce, slightly ahead of our expectations. As at 31 December 2010, the Group's net debt was £140 million. Lavendon has committed banking facilities in place until September 2013, and the facility headroom at 31 December 2010 was £64 million.

Given the Group's strong market positions and free cash flows, the Board is confident that Lavendon is well placed to deliver significant value to shareholders over the medium term.This announcement has not been made with the consent of either Ashtead or TVH and there can be no certainty that an offer will be made, nor as to the terms on which any offer might be made.

Enquiries:

Financial Dynamics Tel: +44(0)2078313113

Billy Clegg

Jonathon Brill

Disclosure requirements of the Takeover Code (the "Code")

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of Lavendon or of any paper offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any paper offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) Lavendon and (ii) any paper offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any paper offeror is first identified. Relevant persons who deal in the relevant securities of Lavendon or of a paper offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of Lavendon or of any paper offeror must make a Dealing Disclosure if the person deals in any relevant securities of Lavendon or of any paper offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) Lavendon and (ii) any paper offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of Lavendon or a paper offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by Lavendon and by any offeror and Dealing Disclosures must also be made by Lavendon, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. If you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure, you should contact the Panel's Market Surveillance Unit on +44 (0)20 7638 0129.

Rule 19.11 disclosure

In accordance with Rule 19.11 of the Code, a copy of this announcement will be published on the Lavendon website: www.lavendongroup.com.