RNS Number:8948Q

EAGA PLC08 February 2007 8th February, 2007 eaga plc INTENTION TO SEEK ADMISSION TO TRADING ON THE OFFICIAL LIST OF THE LONDON STOCK EXCHANGEeaga (the Company), the UK market leader in the delivery of residential energyefficiency solutions, today announces its intention to seek admission to tradingon the main market of the London Stock Exchange in 2007.eaga has a proven track record in delivering outsourced programmes aimed ateradicating fuel poverty in vulnerable households. In recent years eaga hasdiversified its offering to become a significant provider of household energyefficiency measures under the Energy Efficiency Commitment (EEC), and is asignificant player in the local authority and social housing sector. eaga hasdeveloped a scalable infrastructure upon which it intends to capitalise on thesubstantial opportunities that management expects to exist in government andoutsourcing, domestic energy efficiency, and social housing markets goingforward.

Brewin Dolphin Securities has been appointed as Sponsor and Broker to the

Company. The flotation is intended to be achieved by means of placing of sharesto institutional investors.eaga has delivered energy efficiency measures to over 5 million UK homes, liftedseveral million vulnerable people out of fuel poverty. Every day eaga improvesinsulation in over 500 homes. The company also fits or repairs a central heatingsystem every minute of every working day.

Management, led by Chief Executive John Clough, has an excellent track recordwhich has seen revenues increase from inception in 1990 to a current yearforecast of #500m. Excellent profit growth and cash generation has enabled eagato achieve impressive organic growth. In recent years this has been supplementedby key acquisitions that have increased eaga's delivery capability, broadenedits market exposure, and further enhanced eaga's profitability.

Commenting on the announcement, John Clough, Chief Executive, said:"We are pleased to announce the intended flotation of eaga. Over the lastsixteen years we have built a very successful business and are now the UK'slargest provider of residential energy efficiency solutions. We have beenproviding end-to-end solutions to serious environmental and social issues suchas the elimination of fuel poverty for many years. We are now an emerging forcein providing solutions to climate change challenges. The proposed flotation willprovide the company with the financial flexibility required to fund the nextphase of growth. It will also enable some of the existing shareholders(principally the Employee Benefit Trust) to realise a proportion of theirrespective investments."eaga's future revenue prospects are strongly supported by the Government'senvironmental, energy and social policy commitments. eaga plans to extend itsservices to become a leading residential infrastructure service provider bybroadening its local authority and social housing offering, extending itsaftercare services and able to pay central heating offering and capturingfurther government and outsourcing delivery opportunities.

Enquiries:eaga

John Clough, eaga Chief Executive 0191 350 6531

James Grugeon, eaga Communications Director

Brewin Dolphin Securities

Graeme Summers 0191 279 7531

Andrew Kitchingman 0113 241 0187

Tulchan Communications 020 7353 4200

Dominic Fry

Notes to editors: 1. Introductioneaga is a UK market leader in the delivery of residential improvements in theenvironmental, energy efficiency and social justice arenas. eaga's core focusis working with government, local authorities and utility companies to lowercarbon emissions, combat fuel poverty and reduce energy consumption. The workundertaken is principally focussed on the housing and social needs of low incomeand vulnerable households.eaga is based on a partnership structure and is 100% employee owned by twoemployee trusts (eaga has two Employee Benefits Trusts (EBT) which sit at thehead of the employee owned partnership, holding shares in trust for the benefitof all partners). The company has grown rapidly in recent years, building strongrelationships with its customers by: * developing a leading position as a significant deliverer of UK governments' fuel poverty programmes, underpinned by over 15 years' experience of dealing with the most vulnerable groups in society; * working closely with utility companies to support delivery of their Energy Efficiency Commitment (under the Energy Efficiency Commitment electricity and gas suppliers are required to achieve targets for the promotion of improvements in domestic energy efficiency);and * undertaking key strategic actions to broaden activities throughout the energy efficiency and home services supply chain, further embedding eaga as an integrated supplier in its chosen markets, in particular the social housing sector.eaga's portfolio of products and services covers the provision of energy surveysand advice, allocation and administration of energy efficiency funding,installation of central heating systems, cavity wall and loft insulation,renewable energy and a number of other ancillary products and services,including insurance-backed aftercare provision. 2. Key Strengths

The Directors believe that eaga is in an excellent position to pursue thesignificant opportunities developing in the environmental, energy efficiency andsocial justice arenas, principally due to the following: * eaga has a strong and trusted reputation in both the public and private sectors as an established and successful operator; * eaga is led by a highly experienced management team; * eaga has a strong visibility of earnings, with an order book currently standing at #1.5 billion, arising from a number of significant contracts in both the fuel poverty and social housing sectors; * eaga's leading position in a largely fragmented installation marketplace makes the Company well-positioned to take advantage of attractive consolidation opportunities; * eaga's national delivery infrastructure is well established and provides a barrier to potential new market entrants; * over #7.2 million has been invested in developing eaga's industry leading IT systems and infrastructure over the last 2 years. This IT platform has not only provided the business with scalability it has also been recognised by the National Audit Office as an example of best practice and would therefore allow scope for diversification into new business areas; and * eaga has a strong financial track record of growth with excellent profits and significant cash generation. 3. Proposed Placing

The proposed placing will raise proceeds on behalf of existing shareholders,principally the Employee Benefit Trusts. 4. Historyeaga was established in 1990 as a privately-owned company, the Energy Action

Grants Agency Limited, to lead Government funded efforts to improve the livingconditions of vulnerable people living in cold, damp and energy inefficienthomes. John Clough has been Chief Executive of eaga since 1990.

Until 2004, the business developed largely organically through focus on marketpenetration and diversification as new market opportunities were identified.

Late 2004 and early 2005 saw a change in the development of eaga, marked inparticular by the successful re-tender for Warm Front. This was followed by theacquisition in April 2005 of Mico Group, a leading insulation services provider,which complemented eaga's existing business, enabling it to become integratedinto the supply chain and gain a foothold in the EEC market as a leading UKinstaller of residential insulation products.

The business continued to expand and in May 2006 acquired Everwarm Group,

Scotland's largest installer of domestic insulation and an installer of centralheating systems.eaga started a pilot scheme in 2003 to develop an in-house central heatinginstallation business, which was further developed to deliver heating systemsunder the most recent Warm Front contract from early 2005. Since the beginningof 2005, eaga has developed its central heating installation capacityorganically from a zero base to around 300 installation engineers generatingturnover of approximately #36 million.

In December 2006, eaga sought to build on its internal skills base and build itsposition as a major player in the social housing heating sector through theacquisitions of; White Horse Group, whose major trading arm is HEAT, and of JD

Heating. HEAT specialises in the design, installation and maintenance ofdomestic central heating in the social housing market sector within Great

Britain, Northern Ireland and the Republic of Ireland. JD Heating specialisesin servicing and installing domestic central heating systems in the West

Midlands. These two acquisitions together have doubled the size of eaga'sheating operation.

In addition to these key strategic acquisitions, eaga has also completed anumber of smaller complementary acquisitions and strategic alliances with theaim of driving profitability and further strengthening market position. This hasincluded the acquisition in November 2005 of an insurance intermediary businessauthorised by the Financial Services Authority.

It is intended in due course that the Company will review its brand strategyacross the UK with a view to streamlining the range of identities under which itcurrently trades.eaga is now structured into three core sectors, Government Contracts,

Installation Services and Specialist Support Services, comprising six divisions:

Government Contracts, Heating, Home Services, Specialist Business Services,

Shared Services and Insurance. 5. Board of Directors

Executive Directors

John Clough MBE, Chief Executive (aged 47)

John has been Chief Executive of eaga since the business was established in 1990having previously worked in strategic management positions with British Coal.

Under his direction, the Company has grown to become a leader in providingservices to environmental, energy efficiency and social justice challenges.eaga has become a trusted supply partner to local and national governments andenergy utilities throughout the UK.

John has led the strategic development of eaga, broadening its core service andinstallation offerings, transforming its financial performance and provokingsignificant sustainable growth in both the public and private sectors. John'svision has led to a culture which engages with its employees and drivesperformance and service commitment. He is a member of the government's 'Fuel

Poverty Advisory Group', the CBI's national 'Public Service Strategy Board', the

Government's panel on 'Transformational Government for Older People' and afounder trustee of the independent eaga Charitable Trust.

Ian McLeod, Finance Director (aged 38)

Ian joined eaga in 2004, joining the Board in early 2005. He is responsible forall aspects of financial management and reporting across eaga and works closelywith Drew Johnson in delivering eaga's inorganic growth strategy.

Ian spent 14 years with PricewaterhouseCoopers prior to joining eaga, duringwhich time he gained extensive experience in advising many different companiesacross a broad range of market sectors. Latterly during his career with

PricewaterhouseCoopers, Ian supported blue chip organisations in undertakingcomplex M&A transactions, working closely with a major plc in effectinginorganic restructuring of its retail arm from 2002 onwards.

Drew Johnson, Commercial Director (aged 47)

Drew joined eaga in 1991, having previously been with British Coal in supplychain management and logistics. He was appointed to eaga's Board in 1999 andhas subsequently held a number of executive positions in operations and inbusiness and commercial development.

Drew has responsibility for eaga's commercial strategy, focussing on theidentification, development and delivery of opportunities for both organic andinorganic growth. He has been instrumental in diversifying eaga's operationsand transforming profitability.

Dave Routledge, Organisational Development Director (aged 47)

Dave joined eaga in 2002 and was appointed to the Board in 2004. He isresponsible for strategic organisational development, HR, IT, serviceexcellence, corporate and government affairs.

Prior to joining eaga, Dave acquired his own strategic consultancy businessworking with blue chip clients. In that capacity, Dave worked as advisor to theeaga Board and developed the strategy for corporate restructure.

Dave previously held main Board level responsibilities for human resources andoperations within the pharmaceutical sector. He has experience of companyrestructuring in the UK, USA and Europe and was part of a management buy-outteam backed by HSBC (Montague Private Equity). He then worked with Credit

Suisse First Boston to deliver the successful IPO of the business on NASDAQ .

Non Executive Directors

Charles Berry, Non Executive Chairman (aged 54)

Charles joined eaga's Board in 2005 as a Non Executive Director and wasappointed Chairman in June 2006. He is also Chairman of the Nomination

Committee.

He has extensive experience within the UK power sector; he was appointed to the

Board of Scottish Power in 1999 and was Chief Executive of the company's UKoperations with responsibility for power generation as well as trading business,energy retailing and strategic transactions such as renewables and development.

Charles is currently a Non Executive Director of Securities Trust of Scotlandplc and Drax Group plc.

Prior to joining Scottish Power, he was Group Development Director of Norwest

Holst, a subsidiary of Compagnie Generale des Eaux, and has held executivemanagement positions with responsibility for technical, business development andmarketing within subsidiaries of Pilkington plc.

Michael Roberts OBE, Non Executive Director and Deputy Chairman (aged 69)

Michael joined eaga's Board in 1999 as a Non Executive Director, and served as

Chairman until 2006 becoming Deputy Chairman in June 2006.

Michael is a past president of the Institute of Energy and is both well knownand respected in the energy efficiency world. Michael has broad ranging seniorexecutive experience, having served in PA Consulting and Shell.

Michael runs his own energy management consultancy business and has particularexperience in setting up energy management services for the government estate,local authorities, public service bodies and private sector companies.

During the period of Michael's chairmanship, he has overseen the transition ofeaga in terms of growth of revenue, people and profits. Michael chairs the

Remuneration Committee and also sits on the Audit Committee.

Richard Burns, Senior Independent Non Executive Director (aged 48)

Richard is senior partner in the corporate practice of international law firm,

Hammonds. During his 25 years with the firm, he has developed particularexpertise advising on national and international mergers and acquisitions,flotations and the raising of equity finance. Within Hammonds, Richard hasresponsibility for the firm's corporate governance practice globally and hasadvised companies and addressed conferences on the various codes of governancewhich apply in the UK, Europe and in the US.

Richard is Senior Independent Non Executive Director and sits on the Audit

Committee, the Remuneration Committee and the Nomination Committee.

Quintin Oliver, Non Executive Director (aged 50)

Quintin lives and works in Belfast, Northern Ireland. He leads Stratagem, thefirst dedicated lobbying and public affairs company to emerge after the peaceprocess development around Good Friday 1998; he ran the successful cross-party '

YES' Campaign for the subsequent referendum.

Quintin has worked in the public sector (as Welfare Rights Adviser to

Strathclyde Regional Council, 1977-1984), in the voluntary sector (as CEO of the

N. Ireland Council for Voluntary Action, 1985-1998) and now in the privatesector leading Strategem. He has wide European experience (founder of the

European, Youth Forum, 1976 and first President of the European Anti-Poverty

Network, 1991-1995). He is also experienced in the development of socialinclusion policies, and works extensively on the Middle East peace process.

Quintin is a member of the Remuneration and Nomination Committees.

Malcolm Simpson, Non Executive Director (aged 65)

Malcolm joined Greggs plc in 1973, becoming Finance Director in 1975. In thiscapacity, Malcolm oversaw a period of strong growth as the company expanded bothorganically and by acquisition and achieved flotation on the London Stock

Exchange. Malcolm was also responsible for the company's compliance withcorporate governance regulations and risk management. Prior to joining Greggs,

Malcolm trained as a chartered accountant with Peat Marwick Mitchell and spenttime at Procter and Gamble. Malcolm handed over the finance role in 2006 and iscurrently Executive Director with responsibility for IT.

Malcolm is Chairman of the Audit Committee. This information is provided by RNS The company news service from the London Stock Exchange

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