10 May 2010

                         INTERIM MANAGEMENT STATEMENT                          

Interserve, the international services, maintenance and building group, is
holding its Annual General Meeting at 11:30 a.m. today and also issues its
Interim Management Statement covering the period from 1 January 2010 to date.

Overall, the business is performing in line with the Board's expectations,
although as anticipated in the annual results announcement trading during 2010
to date remains challenging in Support Services and Equipment Services, such
that the second half weighting of profits will be more pronounced than usual.

Support Services

Revenues continue to grow as the business benefits from the contracts it has
won in the last eighteen months. However, as previously indicated, a number of
the newer public sector contracts continue to be impacted by significant
mobilisation and transition costs. Contract cost reduction opportunities are in
the process of being realised and the Group remains confident that these
contracts will deliver their full potential over the contract life. Private
sector facilities management contracts are progressing to plan. Nonetheless
elsewhere within the sector, including the access business, conditions remain
very competitive. The above factors are affecting performance so far in 2010.

Market conditions remain difficult for Specialist Services and are continuing
to impact the operating performance of the business.

Project Services

The Group's associate businesses in the Middle East have maintained their
strong performance into 2010, despite lower activity levels in Dubai. The
region's workload has risen from the year end, benefitting in particular from
the award of around £150 million of work in Qatar to date. Recent contract wins
encompass both construction and services activities, including a three-year
services contract with Maersk Oil Qatar for the supply of manpower and
equipment to onshore and offshore facilities, worth around £20 million, and
further substation construction awards in Qatar worth around £25 million.

The UK business continues to perform well, delivering progress versus the prior
year as activity levels in the public and utilities sectors remain healthy. The
business has increased its future workload against an already strong year end
position, giving it good revenue visibility for the remainder of this year and
into 2011 and leaving it well-positioned as we anticipate a period of restraint
on public sector capital spending.

Equipment Services

As previously indicated, the division's performance to date, while in line with
the Board's expectations, is significantly below what was an exceptionally
strong level last year, when a number of major projects in the UAE helped
deliver a record first half operating result. The Middle East remains the
largest regional market for this division, and the recent entry into Saudi
Arabia is developing to plan. Australasia is performing well, buoyed by
activity in the mining market, but elsewhere market conditions remain tough.

Financial position

Further tight control of capital expenditure and working capital has led to a
broadly stable net debt position compared to that reported as at 31 December
2009 (£37.3 million). The working capital position continues to benefit from a
favourable contribution from advance payments, which is likely to reverse over
the coming year.

The Group is pleased to have recently renewed its committed debt facilities of
£250 million until October 2013.

Outlook

Our principal markets offer exciting prospects, and we believe that our
business model of concentrating on long-term client relationships in our core
sectors of expertise is a key strength, given the visibility of future workload
it brings. A healthy future workload in excess of £6 billion (including the
Group's share of Middle East associates) affords the Group excellent visibility
of around 90 per cent and 70 per cent of 2010 and 2011 anticipated1 revenues
respectively.

The Group continues to benefit from its strong international exposure to
markets with attractive growth prospects which offer opportunities to expand
both service offering and geographical footprint.

Given the risks in the external environment, the rest of 2010 will be
challenging, with more pronounced seasonality as noted above. However, the
Board remains confident that the Group has a strong base from which to sustain
long-term growth at attractive margins.

An electronic copy of this Interim Management Statement will be available to
download from the Company's website, www.interserve.com.

For further information please contact:

Adrian Ringrose, Chief Executive       0118 932 0123
Tim Jones, Group Finance Director      0118 932 0123
Matt Jones, Head of Investor Relations 0118 960 2280

Elizabeth Morley                       020 7379 5151
Maitland

About Interserve

Interserve's vision is to be the Trusted Partner of all our stakeholders. We
are one of the world's foremost support services and construction companies,
operating in the public and private sectors in the UK and internationally. We
offer advice, design, construction and facilities management services for
society's infrastructure and provide a range of plant and equipment in
specialist fields. Interserve is based in the UK. It has revenue of £1.9
billion and a workforce of 50,000 people worldwide.

Footnote

1. Based on 2010 consensus revenues of £1.92bn, 2011 consensus revenues of £
1.91bn.