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First Day of Dealings

For Immediate Release 10 October 2007

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA

CVS Group plc (‘CVS’ or ‘the Company’ or ‘the Group’)

First Day of Dealings on the AIM market of the London Stock Exchange

CVS (AIM: CVSG), one of the UK’s leading providers of veterinary services, announces that its ordinary shares have been admitted to trading on AIM following its successful Placing to raise £92.7million led by Panmure Gordon & Co. CVS’ ticker symbol is CVSG.

Highlights

  • The Placing, associated with CVS’ admission to AIM, of 45,205,800 shares (representing 87.7% of the Company’s issued share capital) at 205 pence per share, raises £92.7 million for Selling Shareholders, valuing the whole of CVS at £105.7 million.
  • The Placing was comfortably over-subscribed, with high quality demand at the Placing Price.
  • The purpose of the flotation is to raise the public profile of the Group, to help drive new business and to increase awareness of the Group within the veterinary profession. It has also provided an opportunity for Nash Sells Limited Partnership II, a fund managed by Sovereign Capital Partners LLP, to realise its investment after eight years of support
  • The Company’s three recently appointed non-executive directors have agreed to buy a total of £100,000 worth of shares at the Placing price
  • The current management team of Simon Innes, Chief Executive since 2004, and Paul Coxon, Finance Director since 2003, has increased sales from £12.8m in 2005 to £39.0m in 2007 (year end 30 June), a compound annual growth rate (‘CAGR’) of 75%. EBITDA has increased from £1.3m to £5.1m over the same period, a CAGR of 98%.
  • CVS was established in August 1999, with financial backing from funds managed by Sovereign Capital Partners LLP, to acquire and operate veterinary practices which were well established within their local community and had a reputation for high quality service.
  • Based in Diss, Norfolk, the Group operates two divisions: the practice division composed of 45 small animal practices and one equine specialist practice (128 individual surgeries throughout the UK) and the diagnostic division made up of three veterinary diagnostic laboratories which provide services to CVS and to third parties.
  • CVS currently employs 1,214 staff, including 271 vets, as well as using additional locums, and is the largest national consolidator of veterinary practices.

Commenting on the start of trading of CVS’ shares on AIM, Simon Innes, Chief Executive of CVS, said:

“The company’s admission to the London AIM market and commencement of dealings is a significant step for CVS. Our business has been built by a strong team of dedicated professionals who ensure both quality and reputation result in CVS being highly regarded within the sector.

Becoming a public company is a natural progression for us raising our corporate profile and securing our continued success in both acquisitive and organic growth.

I am delighted with the response from investors and look forward to engaging with the investment community as a quoted company.”