Disposal

Carillion PLC
06 September 2006


6 September 2006

      Carillion agrees sale of equity in Public Private Partnerships (PPP)

Support services and construction company, Carillion plc, has agreed terms to 
sell its equity holdings in eight fully operational Public Private Partnership 
projects to two secondary market funds.

The sales are expected to generate cash proceeds of £46 million and an 
exceptional profit of £22 million. The value attributed to the equity being  
sold implies a net present value calculated using an average discount rate of  
less than five per cent.

In the light of the values implied by this sale, the Carillion Directors' 
valuation of the Group's portfolio of equity investments in financially closed 
projects is £216 million, net of equity being sold. This valuation is based on 
discounting the cash flows from these investments at an average of 8 per cent, 
rather than the10 per cent used previously. Following the equity sale,  
Carillion will have 23 financially closed projects in which it has invested,  
or has commitments to invest, a total of £159 million.

Carillion also has a strong pipeline of preferred bidder and shortlisted 
projects, which together have a potential equity requirement of up to £75 
million, in addition to the £159 million already invested in, or committed to, 
financially closed projects. Beyond that there are continuing opportunities  
for growth in UK and Canada, which have major PPP programmes in Carillion's  
key market sectors.

Subject to satisfying certain conditions attendant on these sales, the 
transactions are expected to be completed by the end of September.

Note to editors

The equity holdings being sold are in the following projects:
HMP Altcourse
Rainsbrook Secure Training Centre
Medway Secure Training Centre
HMP Rye Hill
Manchester Magistrates Courts
East Anglia Courts
Humberside Courts
Leeds Schools

Equity is being purchased by the Secondary Market Infrastructure Fund, through a
holding entity, for approximately £32 million, and by Infrastructure Investors
LP, for approximately £14 million.

Details of these projects can be found on Carillion's website at
www.carillionplc.com/privatefinance


For further information contact
John Denning   Director Corporate Affairs  01902 316426




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