Homeserve plc

Long Term Incentives

This notification is made in accordance with DTR 3.1.4R(1)(a).

a)        Investment and Grant of Awards under new Homeserve 2008 Long Term Incentive
            Plan (the 'LTIP')

The LTIP was approved by shareholders on 28 July 2008. A number of PDMRs have chosen to invest some or all of their 2008 net annual bonus in Shares ("Investment Shares") under the LTIP. Investment Shares totalling 36,175 were purchased on 8 August 2008 on the London Stock Exchange at a price of £14.41 per Share. 

Following the acquisition of Investment Shares, on 8 August 2008, certain PDMRs were granted Matching Awards under the LTIP, in the form of conditional awards to acquire Shares. No consideration was paid for the grant of Matching Awards (other than the acquisition of linked Investment Shares). Subject to the retention of the Investment Shares, continued employment and the achievement of stretching comparative TSR related performance criteria, the Matching Awards will vest in three year's time.  

Details of the Investment Shares and Matching Awards are set out in the table below.

b)     Vesting of awards under the Deferred Bonus Plan ('DBP')

In 2005, a number of Directors and other Persons Discharging Managerial Responsibility (together "PDMRs") received part of their annual bonus in the form of a Deferred Bonus Share Award over ordinary shares of 12.5 pence in the Company ("Shares"). Those Deferred Bonus Share Awards vested on 8 August 2008, following the end of the three year vesting period, triggering a tax and NIC liability. 

On 8 August 2008, the Matching Share Awards which were granted to certain PDMRs at the same time as their Deferred Bonus Share Awards, vested following the satisfaction of stretching comparative TSR related performance criteria. In satisfaction of their Matching Share Award, and in accordance with the rules of the DBP, each of the PDMRs (with the exception of Mr King and Ms Hughes) has been granted a nil priced option over the number of Shares in respect of which their Matching Share Award vested. The nil-priced options will be exercisable until 2 August 2015. No consideration was paid for the grant of a nil-priced option. 

Mr King's and Ms Hughes' Matching Share Awards (which were granted under the US and the French Sub Plans to the DBP respectively) have vested, triggering an income tax and social security liability. No consideration was paid for the Shares acquired on the vesting of these Matching Share Awards. 

Further details of the individual transactions under the DBP are set out in the table below:

¹ For tax reasons, Miss Hughes purchased this number of Shares from her net bonus on 2 August 2005 and those Shares were subject to a three-year holding period which has now ended. Miss Hughes was not granted a Deferred Bonus Share Award.

² Miss Hughes sold all of the vested shares.

Shares totalling 36,785 were sold on the London Stock Exchange on 8 August 2008 at a price of £14.41. 

The Company was informed of the transactions set out above on 8 August 2008.  

11 August 2008

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