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Interim Management Statement

26th July 2007

Biffa Plc, which holds its Annual General Meeting today at 11.00 a.m., is publishing its first Interim Management Statement as required by the UK Listing Authority Disclosure and Transparency Rules.

In the period from 1 April, the start of the year, to 29 June 2007 (the most recent date for which figures are available) group turnover at £197 million was in line with management expectations and 4% ahead of the first quarter last year. The financial position of the Company remains strong with net debt of £359 million at 29 June 2007.

We have seen encouraging starts to the year from our Resource Recovery and Landfill and Power Generation Divisions. In Collection, the local account market remains highly competitive. We have continued to implement our revised pricing strategy and customer service initiatives but, as we said at the time of our Preliminary Announcement, the full effects of these will take time to come through. Despite disruption from the recent adverse weather, for the Group as a whole, we continue to expect steady progress in the current year.

We are pleased to report that the modifications we have made to the mechanical-biological treatment plant at Leicester have passed all their performance tests, putting the contract on track to return to profit in the first half.

We have been making preparations in both our Collection and Resource Recovery and Landfill Divisions for the implementation of the pre-treatment regulations in October. We will be able to offer a collection service with national coverage for paper, card and glass and have continued to expand our treatment facilities.

Our Power Generation Division has further benefited from the conversion of less profitable NFFO contracts to output qualifying for ROCs.

We intend to give a further update on trading around the end of September and our half-year results will be announced on 28 November 2007.