Zenith Hygiene Group plc (“Zenith” or “the Company”), the manufacturer and supplier of cleaning and non-food ancillary products to the food service and hospitality markets, announces the proposed acquisition of the entire issued share capital of GW Chemicals Limited (“GW Chemicals”), a Yorkshire based manufacturer and distributor of cleaning and hygiene products and a proposed placing to raise £6.1 million before expenses.

Summary

• Acquisition of GW Chemicals for up to £6 million, the consideration to be satisfied £5.1 million in cash and up to £0.9 million in Zenith shares
• Placing of 4,500,000 shares at 135 pence per share to raise approximately £6.1 million
• GW Chemicals had sales of £8.7 million and profit before tax (before amortisation of goodwill) of £0.3 million in the year ended 28 February 2005.  The Zenith Board anticipates that there will be pre-tax synergies of approximately £1.6 million in the financial year ending 31 August 2007
• GW Chemicals is a highly complementary business to Zenith with a bias towards the North of England and represents an excellent fit with Zenith’s existing business

Ringo Francis, Chairman & Chief Executive of Zenith, commented:

“The acquisition of GW Chemicals further strengthens Zenith’s position in the cleaning and hygiene products market.  We know the GW Chemicals business well - it represents an excellent fit with our existing business.  We are also delighted with the response from our existing and new shareholders to the proposed placing which was comfortably oversubscribed.”

For further information please contact:

Zenith Hygiene Group plc
Ringo Francis, Chairman and Chief Executive
Richard Colwell, Finance Director
01707 270 260

Oriel Securities Limited
Adrian McMillan
James Titmuss
020 7710 7600

Beattie Communications
Tim Blythe
Tracy Lloyd-Watts
020 7053 6000