Re Contract

Carillion PLC
10 September 2001


Carillion named as preferred bidder for University PFI project

Carillion, one of the UK's leading construction to services companies, has
been named as the preferred bidder for a PFI project worth over £100 million
to provide extensive new facilities for the University of Hertfordshire.

The project involves the construction and operation of 1,600 units of en-suite
student accommodation together with extensive sports facilities that will form
part of the new Hatfield de Havilland Campus at the University of
Hertfordshire.

The Carillion consortium comprises Carillion and the Royal Bank of Scotland
Group plc. Upon financial close, the construction work will be carried out by
Carillion Building Special Projects and the facilities will be operated by
Carillion Services over the 30-year concession period.

John McDonough, Carillion Chief Executive said: 'We are delighted to have
reached preferred bidder stage for this prestigious development for the
University of Hertfordshire and look forward to working with the University to
provide outstanding new facilities on the de Havilland Campus.'

Dr Tim Wilson, Pro Vice Chancellor of the University of Hertfordshire said:
'The PFI project provides residential and sports facilities that will support
the University's academic community and enhance the social infrastructure of
the town of Hatfield.

'The PFI scheme, together with the planned new Faculty buildings, will create
the new de Havilland Campus for the University and will replace the existing
campuses at Hertford and Aldenham. The academic, residential and sports
facilities will be comparable to the best in the University sector.'

The new sports facilities include:- a 25 metre eight-lane swimming pool, a
main sports hall with 12 badminton courts, an ancillary sports hall with
four-lane indoor cricket, two squash courts, a fitness centre and a sports bar
with seating for 100. In addition, there will be a refectory with seating for
up to 500. The project also includes sports pitches, including a full-size
multi-purpose artificial turf pitch, training areas and hard courts.

The layout of the new site has been designed to create a variety of external
spaces around a range of residential buildings to ensure the development
successfully contributes to the local environment.

The consortium's advisers for the project include Ashurst Morris Crisp (legal)
and Bank of America (financial). Architectural and design services are
provided by Austin-Smith:Lord and TPS Consult.

 Note to editors

Carillion is a UK leader in the Private Finance Initiative, specialising in
higher education accommodation, secure establishments, health and transport
projects. The addition of the University of Hertfordshire will bring
Carillion's total portfolio of financially closed PFI projects to 16 of which
11 are now in the operational stage.

For further information contact Jane Smith or John Davies - Carillion media
relations - 01902 316620.