FirstService completes two acquisitions in rapidly growing Property Improvement Services division

TWO DIVESTITURES MADE TO ALIGN STRATEGIC FOCUS 

TORONTO, April 13 /CNW/ - FirstService Corporation (Nasdaq: FSRV; TSX:
FSV.SV) today announced that it has completed the acquisition of two
California Closets franchises, adding $5 million of annualized revenue to its
rapidly growing Property Improvement Services division. The terms of the
transactions were not disclosed.
The addition of Dallas and Phoenix brings the total number of California
Closets "branchises" owned by FirstService to eight, including operations in
Boston, Seattle, Jacksonville, Chicago, San Francisco and Toronto. The eight
"branchises" collectively generate approximately $40 million in annual
revenues. "These acquisitions are a continuation of our proven strategy to
acquire selected franchises operating in attractive markets that are well-
positioned for accelerated growth as company-owned operations," said Jay S.
Hennick, President and CEO of FirstService.
FirstService also completed the disposition of two non-core businesses in
its Property Improvement Services and Residential Property Management
divisions as a result of an ongoing process to evaluate its businesses and the
allocation of investment capital. These operations generated approximately
$13 million in annual revenues.
FirstService, through its subsidiary The Franchise Company, sold its
decorative glass products franchise system, Stained Glass Overlay ("SGO"). The
sale will allow senior management at The Franchise Company to focus on its
other faster growing franchise systems.
In a separate transaction, FirstService sold its South Florida concrete
restoration business, a small part of its Residential Property Management
division. The concrete restoration business generated unacceptable operating
results and the sale will allow senior management to focus on the significant
growth opportunities in its core residential property management business.
FirstService will report the results from these divested businesses as
discontinued operations for its fiscal year ending March 31, 2005. The Company
will also record a non-cash loss on sale, net of the impact of the previously
reported gain on sale of its company-owned lawn care operations earlier in
fiscal 2005, of approximately $0.01 per diluted share.
The above transactions do not materially impact the Company's
expectations for fiscal 2006 as outlined in the preliminary outlook released
on January 26, 2005. FirstService will update its outlook for fiscal 2006 in
conjunction with the release of the Company's results for the year-ended
March 31, 2005, on May 18, 2005.

FirstService is a leader in the rapidly growing service sector, providing
services in the following areas: commercial real estate services; residential
property management; commercial security systems; property improvement; and
business services. Market-leading brands include Colliers International in
commercial real estate; Continental, Wentworth and Prime Management in
residential property management; Intercon Security and SST in commercial
security systems; California Closets, Paul Davis Restoration and Pillar to
Post Home Inspections in property improvement; and Resolve Corporation in
business services.
FirstService is a diversified service company with more than US$1 billion
in annualized revenues and more than 15,000 employees worldwide. More
information about FirstService is available at www.firstservice.com.

FORWARD-LOOKING STATEMENTS
Certain statements included in this release constitute "forward-looking
statements" within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company, or industry
results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
factors include, among others, the following: general economic and business
conditions, which will, among other things, impact demand for the Company's
services, service industry conditions and capacity; the ability of the Company
to implement its business strategy, including the Company's ability to acquire
suitable acquisition candidates on acceptable terms and successfully integrate
newly acquired businesses with its existing businesses; changes in or the
failure to comply with government regulations (especially safety and
environmental laws and regulations); and other factors which are described in
the Company's filings with the Securities and Exchange Commission.