Mears Regulatory News (MER)

28 June 2010

Mears Group PLC

("Mears" or "the Company" or "the Group")

Further Response re: Price Movement

Following the brief statement made by Mears after the market closed on Friday 25 June the Company is pleased to reiterate that it is continuing to deliver strong trading across all divisions and is not experiencing any downward pressure on spend in its social housing business. Current trading and strong cash conversion for the year are in line with management expectations.

In summary:

·; Continuing to deliver strong trading across all divisions

·; No evidence or experience of downward pressure in spending in social housing which remains a largely secure and non-discretionary spend

·; £2.5 billion order book and £3 billion bid pipeline

·; Winning longer term agreements with Local Authorities and RSLs

·; Secured revenues of 91% of consensus forecast for the current year

·; Strong focus on cash conversion.

Commenting, Bob Holt, Chairman of Mears Group, said:

"I believe that Mears will now be considered market leader in social housing repair and maintenance which will add further to an already unprecedented level of opportunity within the public sector. Local Authority clients continue to consider more innovative and higher scale partnerships which is already evidenced this year with major contract wins.

"The quality of our operational delivery and our people underpins our strategy and continues to give us clear competitive advantage as evidenced by our enhanced reputation both in terms of the winning of new business and the recruitment and retention of key personnel. These factors are central in maintaining a robust revenue stream with our existing client base whilst providing significant opportunity within our bid pipeline."

ends.

About Mears www.mearsgroup.co.uk (tickers: MER.L MER.LN MER.PL)

Mears is a leading social housing repairs and maintenance service provider to Local Authorities and Registered Social Housing Landlords in the UK and, following the acquisition of Supporta, now commands a leading position in the UK Local Authorities' outsourced domiciliary care market, providing personal care services to people in their own homes.

Mears employs in excess of 11,000 people and provides maintenance and repairs services to 500,000 homes nationwide. Mears also provides over 150,000 hours of domiciliary care to 20,000 service users each week.