NEWS RELEASE

                                   For  further  information   contact:
                                   Claire Buchan, VP Comm,  (630)271-2150
                                   Bruce Duncan, VP  IR,   (630)271-2187
                                   Steve  Preston,  CO,   (630)271-2637

FOR IMMEDIATE RELEASE
August 5, 1999


                       SERVICEMASTER ANNOUNCES SUCCESSFUL
                            PRICING OF DEBT OFFERING


         DOWNERS GROVE, Illinois - ServiceMaster  (NYSE:SVM) today announced the
pricing of a $250 million  senior  unsecured  debt  offering.  The 7.875 percent
notes were priced to yield 7.979 percent and are due August 15, 2009.

         The  proceeds  from the  offering  of the notes will be used to repay a
portion of the Company's  borrowings  under its revolving bank credit  facility,
thereby   reducing  the   Company's   exposure  to   short-term   interest  rate
fluctuations.

     Underwriters for the notes offering include lead manager J.P. Morgan & Co.,
and co-managers  Goldman,  Sachs & Co., Banc of America  Securities LLC and Banc
One Capital  Markets,  Inc. Junior  co-managers for the offering are BNY Capital
Markets, Inc. and First Union Capital Markets Corp.

         Prospectuses   relating  to  the  debt  offering  may  be  obtained  by
contacting  the  underwriters  or:   ServiceMaster   Investor   Relations,   One
ServiceMaster Way, Downers Grove, Illinois, 60515, 630-271-2187.

         ServiceMaster  provides  outsourcing services to more than 10.5 million
customers  in the United  States  and in 41  countries  around  the world,  with
operating  revenue  of  approximately  $4.7  billion in 1998.  The core  service
capabilities of the Company include lawn care and landscaping,  termite and pest
control,   plumbing,  heating  and  air  conditioning  maintenance  and  repair,
appliance  maintenance and repair,  cleaning,  plant  maintenance and supportive
management.

         These  services are  provided  through a network of  company-owned  and
franchised  service centers and business  units,  operating under leading brands
which  include  TruGreen-ChemLawn,  TruGreen-LandCare,  Terminix,  American Home
Shield, Rescue Rooter, American Residential Services,  ServiceMaster Residential
and  Commercial   Services,   Merry  Maids,   AmeriSpec,   Furniture  Medic  and
ServiceMaster Management Services.

         This  press  release  shall  not  constitute  an  offer  to sell or the
solicitation of an offer to buy nor shall there by any sale of these  securities
in any state in which such offer, solicitation,  or sale would be unlawful prior
to registration or qualification under the securities laws of any such state.