Health Portfolio

CARILLION PLC
6 October 1999


Growing PFI health portfolio for Carillion

Carillion, the UK construction to services company, has taken its
portfolio of signed Private Finance Initiative (PFI) deals to
more than £1 billion with the conclusion of negotiations for the
Princess Margaret Hospital, Swindon.

The Swindon project is Carillion's fourth health PFI deal and
follows the contracts for the first major project in the health
sector at Dartford in Kent, a small private patients unit at
Bournemouth and a medicine for the elderly unit in Glasgow.

The Hospital Company, a consortium with United Medical
Enterprises and Barclays Capital, will design, build, manage and
finance the new 480 bed hospital replacing the existing Princess
Margaret Hospital.  It will feature more clinical space,
including a larger A&E department, improved diagnostic facilities
and day surgery, additional theatres, and a range of new
specialist departments including dedicated space for cancer
therapies and a renal dialysis unit.

The construction work, to be undertaken by Carillion Building is
worth  nearly £100 million.  The 'L' shaped building has been
designed to be environmentally friendly, following extensive work
the Carillion team has done with leading environmental
organisation, The Natural Step.

Specialist mechanical and electrical services in the new hospital
will also be provided by a Carillion company, Crown House
Engineering.  Construction work will begin immediately and the
hospital will take its first patients in 2002.

Carillion will also benefit from a facilities management
contract, to be undertaken by Carillion Services which is worth
around £175 million over 30 years.

Sir Neville Simms, Carillion chairman comments: 'We are delighted
to have concluded negotiations for a further major PFI contract
in the health sector.  Private Finance is a key sector in the
growth strategy for Carillion, with the Government expected to
award a further £11 billion worth of PFI contracts over the next
four years.

'We expect to sign a further two PFI contracts by the end of the
year which will bring the total value of Carillion's portfolio to
over £1.5 billion.'


For further information John Denning, Alison Barlow or John
Davies - 01902 316620.