Acquisition

Carillion PLC
09 March 2005

Carillion acquires Planned Maintenance Group

Carillion plc, one of the UK's leading support services and construction
companies, has acquired Planned Maintenance Group Ltd (PMG) for a cash
consideration of £40 million.

PMG, operating through its principal subsidiary Planned Maintenance Engineering
(PME), is one of the UK's foremost independent building services and maintenance
companies with a strong reputation for high quality services and customer care.

The value of net assets acquired under the transaction is £10.6 million. In
2004, PMG's unaudited turnover and profit before tax were £162 million and £4.15
million, before non-recurring management fees, respectively. Earnings before
interest, tax, depreciation and amortisation were £4.85 million.

The acquisition of PMG will immediately be earnings-enhancing and is a further
significant step in implementing Carillion's strategy of growing its support
services and Public Private Partnership investment activities alongside a strong
and selective construction capability.

The PMG pension scheme has a net deficit of approximately £10 million. Carillion
will eliminate this deficit by funding a one-off cash contribution to the
scheme. This will be in addition to the £40 million consideration and will
produce a commensurate reduction in company contributions to the scheme.

PMG employs over 2,300 people, providing a range of services, including
mechanical and electrical engineering (M&E) maintenance, building fabric
maintenance and repair, facilities management and environmental services. It has
over 400 customers, including a number of 'blue chip' companies, central
government and local authorities and provides services to some 40,000 properties
throughout the United Kingdom and in Eire.

Commenting, Carillion chief executive, John McDonough, said: 'PMG is an
excellent strategic fit and will add good quality earnings to the Group. It will
significantly strengthen our support services offering in our Health and
Business Services markets. In particular, having a strong in-house M&E
maintenance capability will bring considerable benefits to new and existing
Carillion customers as this is a major element in providing fully integrated
service solutions for buildings.

'PMG has a strong order book with good forward visibility and well-established
positions in growing markets. This, together with the significant synergy
benefits we expect to generate, will enhance our prospects for growth.

'PMG's long and successful track record is based on its customer-focused
strategy, which fits well with Carillion's values and culture and we already
have an established relationship with PMG as one of our key suppliers.

'We are therefore delighted to welcome the PMG management team and all its
employees to the Carillion Group.'

Note to editors

Carillion

Carillion is a leading provider of integrated solutions for buildings,
infrastructure and services. As a FTSE 250 company with annual turnover of some
£2 billion and over 20,000 employees, Carillion delivers high-quality, cost
effective and sustainable solutions using its wide range of skills and
resources. Carillion's key markets are health, transport, building, facilities
management and support services for private and public sector customers.
Carillion is also a leader in Public Private Partnership projects, having
financially closed 22 projects with a construction, maintenance and facilities
management value to the Group of £2.8 billion to date. It is also the preferred
bidder for a further four PPP projects worth around £1.4 billion.

Planned Maintenance Group

PMG operates through two trading companies, Planned Maintenance Engineering
(PME) and Building Environmental Hygiene (BEH). It has 1,200 people located at
PMG offices and customers' premises, with a further 1,100 mobile technicians
operating from a network of 15 service centres, providing a 24-hour callout
service for other customers throughout the UK and the Republic of Ireland. In
addition to providing hard and soft FM services, including M&E maintenance,
building fabric maintenance and repair, the group provides environmental hygiene
services and advice for water hygiene, water treatment, electrical and catering
maintenance.

Its key customers include Royal Bank of Scotland, Deutsche Bank, Reuters, UBS,
Linklaters Prudential Assurance, The Department of the Environment, Food and
Rural Affairs, the Driver Vehicle Licensing Agency, Manchester Police, GCHQ,
Plymouth, Torbay and Hampshire Councils.

For further information contact

Chris Girling   Finance Director                    01902 422431

John Denning    Director Group Corporate Affairs    01902 316426

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www.newscast.co.uk Telephone [phone].






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