ASX / NZX Announcement4 August 2011Media Speculation Regarding Braiform

Spotless Group Limited (ASX/NZSX: SPT) notes media speculation in today’s The Australian newspaper regarding a sale process for Braiform.

Following receipt of unsolicited approaches for the acquisition of Braiform, the Board initiated a confidential sale process consistent with its commitment to maximise value for shareholders.

These unsolicited approaches in relation to Braiform pre-dated and are unrelated to the indicative, non-binding and conditional private equity proposal announced on 9 May 2011, which was in relation to the Spotless Group.

Following discussions with potential buyers, the Board concluded that it was in the best interests of shareholders to retain the business and confirms it is no longer in discussions with any potential buyers.

In reaching this decision, the Board had regard to the current volatility in global financial markets and subdued economic conditions in Braiform’s key markets. While the earnings of the business are currently adversely impacted by these factors, the business is resilient, having remained profitable and cash flow positive throughout the Global Financial Crisis and resultant economic downturn. With the business now successfully restructured and an efficient operating platform in place the Board remains confident of Braiform’s future prospects.

Spotless is scheduled to report 2011 financial results on Friday 19 August. ENDS

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