GENERAL: SPT: Barkly Street Legal Case Settlement

7 Jul 2010 1:50 pm

SPT 07/07/2010 GENERAL

REL: 1350 HRS Spotless Group Limited

GENERAL: SPT: Barkly Street Legal Case Settlement

Spotless Group Limited (ASX/NZX:SPT) today announced that a settlement agreement has been reached over a longstanding legal dispute before the courts.

In 2003 Spotless was named as a defendant in proceedings commenced by the then owner of a property in Barkly Street, Brunswick in relation to the environmental condition of that property.

In October 2007 the Supreme Court of Victoria handed down judgement in the proceeding, determining that all claims against Spotless failed, other than a limited claim for statutory compensation and associated legal costs.

Both Spotless and the plaintiff appealed the decision, but have today agreed to settle the matter outside of court.

As part of the settlement, Spotless will provide payment of $4 million to the plaintiff, with both parties giving full mutual releases in respect of all appeal proceedings. Spotless will not pay the legal costs of the plaintiff. Spotless purchased the property in 2007 and is currently preparing the site for environmental remediation.

This settlement represents the best possible outcome for Spotless in light of the plaintiff's claim for approximately $10 million plus legal costs, the uncertainty surrounding potential appeal outcomes and the significant ongoing legal costs of the appeal proceedings.

Spotless intends to treat the settlement as a Non-Recurring-Item in its 2010 financial statements. Inclusive of associated legal costs, Spotless expects this settlement to lower financial year 2010 Earnings Before Interest and Tax (EBIT) and Net Profit After Tax (NPAT) by $4.6 million and $3.2 million respectively. The settlement amount is in line with the disclosure provided in the company's contingent liability note to its 2009 financial statements.

Media Kerrina Lawrence T: +61 (0) 3 9269 7582 M: +61 (0) 434 198 427

Investors Rowan Wilkie Tel: +61 (0) 3 9269 7303 Mob: +61 (0) 418 577 956

ABOUTSPOTLESS www.spotless.com

Spotless Group - is a leading multi-national services organisation comprised of Facility Services and Retailer Services. Established in 1946, Spotless is listed on the Australian and New Zealand Stock Exchanges and employs more than 37,000 people.

The Group's Facility Services operations provide global facilities management and asset maintenance services comprising catering, cleaning, painting and laundry services across a broad range of industry sectors. Retailer Services, operating under the brand Braiform, provides customised garment hanger and packaging solutions to retailers and garment manufacturers in more than 30 countries. End CA:00197041 For:SPT Type:GENERAL Time:2010-07-07:13:50:18

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