Effective from 30th November 2006, Marshalls plc has acquired Scenic Blue Limited.

Marshallsâ extensive consumer research in the Domestic Landscaping market has identified a diverse market where there are a range of different consumer needs far beyond the traditional DIY or DIFM (Do it for Me) approaches.

Historically, Marshalls and its buildersâ merchant partners provided help with product selection, ordering and delivery. This then developed into providing ideas, product selection advice and an Approved Installer network. This network has been successful with additional business being generated for Approved Installers, and the consumer getting ãpeace of mindä from the quality assurance that the Marshalls Register provides. Recent initiatives have added design visualisation and project management (for hard landscaping only) through the Drive & Garden Transformation Centres and the on line ãDriveway Visualiserä. In all these cases we are looking to increase demand which is then satisfied through our Approved Marshalls Register Installers and buildersâ merchant partners.

It has become clear as we have developed these services that there is strong demand for a full design and project managed service incorporating soft as well as hard landscaping. With a few exceptions, we are not currently capable of fulfilling these projects. This is Scenic Blueâs core market.

Marshalls has recently reached agreement to sponsor the RHS Chelsea Flower Show for the next three years. This will be used to promote professional garden design and installation and position Marshalls as the market leader in this area. We expect to generate extra demand for a full design and project management service. This service will also be promoted through the Marshalls brochure of which over 1 million copies are despatched annually, the Marshallsâ, website and Drive & Garden Transformation Centres.

Marshalls ownership of Scenic Blue will remove any barriers to the passing of this business through to the Scenic Blue franchisees. Together Scenic Blue and Marshalls are perfectly placed to exploit this market opportunity. The additional business expected through the RHS Chelsea Flower Show sponsorship will necessitate the rapid expansion of Scenic Blue to become fully national.

Judy Behl is central to the delivery of this shared vision. We understand that Scenic Blue is a unique business with a lot of knowledge of this market. Judy will continue to lead and develop Scenic Blue as part of the Marshalls Consumer Division drawing on the support and expertise of Marshalls where she believes it is beneficial. The integrity of Scenic Blue will be preserved.

We look forward to working together with Scenic Blue franchisees to continue the development of inspirational garden design and expert installation with Marshallsâ innovative products.

Graham Holden

Chief Executive, Marshalls plc

29 November, 2006