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SOUTH STAFFORDSHIRE PLC NEWS ARTICLE

01/10/10 - Acquisition of Omega Red Group Limited (Omega Red).

We are delighted to announce the acquisition of Omega Red, a market- leading specialist installation, testing and maintenance contractor within the electrical earthing and lightning protection market.

Omega Red has a national capability operating out of its Head Office in Nottingham as well as from sites in London, Manchester, Bristol and Edinburgh and employs over 220 staff. The business focuses on providing top quality safety-critical services for the protection of people, buildings and infrastructure.

Consistent with the Group's existing business, Omega Red operates in an increasingly regulated market driven by increased safety awareness, legislative requirements and more stringent industry standards. Omega Red works primarily within the utilities, rail, construction and facilities management sectors and has a large client base ranging from utility companies through to major commercial, industrial and retail organisations and developers.

Colin McElhone, Managing Director of Omega Red commented, "as a business, Omega Red is well positioned to progress to the next level of development and the deal with South Staffordshire offers a strategic partnership which will allow us to further our growth plans and take the business into expanding markets."

Adrian Page, Group Finance Director at South Staffordshire Plc said, "Omega Red is a very well established business, with a market leading reputation and a strong management team. We are confident that the business will prove to be a real asset alongside South Staffordshire’s Water and Wastewater Services division going forward."

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