TORONTO, Ontario (July 6, 1999) -- FirstService Corporation (NASDAQ: FSRV; TSE: FSV) today announced that it has expanded its Business Services division by acquiring a specialty fulfillment business with locations in Dallas, TX, Oklahoma City, OK and Albuquerque, NM.

The operations, purchased through a newly-created FirstService subsidiary, DDS Southwest Distribution Services Limited, provide order processing and fulfillment, kit preparation, invoicing, account receivable collection, and reporting and reconciliation to customers in the educational publishing industry. Together with the new acquisition, DDS now maintains branches in Cleveland, Los Angeles, Philadelphia, Dallas, Oklahoma City, Albuquerque and Toronto occupying a total of 1.6 million square feet.

For the year ended December 31, 1998, the acquired business generated revenues of U.S. $8 million. The purchase price was not disclosed.

Jerome Baker, currently Executive Vice President, will become President of DDS Southwest. Gary Havener, formerly majority owner of the acquired business, will continue to serve as a director and remain a key advisor to senior management.

"The acquisition provides us with a significant presence in the Southwest, as well as significant new customer relationships in a market niche with attractive growth opportunities", said Tom Aiton, Chief Executive Officer of DDS. "Our presence will allow us to introduce a full compliment of services to Fortune 500 customers throughout the region."

"Merging with the leader in the fulfillment services industry is a real advantage," said Baker. "We will now be able to provide our clients with a wider variety of services from strategically located branches throughout the United States and Canada," he added. "With DDS and FirstService as our business partners, we have the capital, resources and infrastructure to grow our business aggressively," he concluded.

Jay Hennick, President and Chief Executive Officer of FirstService stated, "This acquisition meets all our criteria and is an ideal fit for DDS. DDS Southwest adds another market leader with a strong track record of internal growth and profitability and a high proportion of recurring revenues -- a key to the FirstService growth strategy" he concluded.

FirstService Corporation is a leader in the rapidly growing service sector, providing a variety of specialized services -- including community association management, security, franchise and data processing and trade material fulfillment -- to corporate, government and residential customers throughout North America.

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.