Re Contract

Carillion PLC
22 July 2004

22 July 2004

Carillion reaches financial close on its first NHS LIFT contract worth around
£80 million for Birmingham and Solihull

Business and Construction Services company Carillion has reached financial close
on a contract for the development, construction, provision of facilities
management and financial backing for doctors' surgeries and other primary care
facilities across Birmingham and Solihull. The joint venture contract is
estimated to be worth around £80 million over the first five years of a
potential 25-year partnership.

Through the LIFT (Local Improvement Finance Trust) programme, a total of 11
'one-stop' centres will be created to bring social services closer to healthcare
provision over the next two years. It is envisaged that up to 30 facilities will
either be improved or replaced during the first five years.

John McDonough, chief executive of Carillion said: 'We are delighted to be
working in partnership with Birmingham and Solihull on this project. Health is
one of our key growth sectors and the LIFT programme is one of a number of
important new developments that underpin the Government's commitment to
improving services through working with the private sector to deliver total
healthcare solutions.

'LIFT projects also provide opportunities for a sustainable approach to the
provision of buildings and services and Carillion will be seeking to apply its
sector-leading knowledge and experience of sustainable development to this
project.'

John Hutton, Health minister, added: 'The development of new premises for GPs in
some inner city areas is long overdue. This welcome announcement paves the way
for state of the art premises for the delivery of primary and community services
for the 21st century. GPs and their teams have often struggled in difficult
circumstances to provide the care that NHS patients deserve. New premises should
encourage more doctors and nurses to come and work in these areas, and allow for
an extended range of services to be provided close to where patients live.'
The project will create high quality, comfortable and efficient premises for the
delivery of local healthcare, replacing outdated or poorly maintained facilities
throughout Birmingham and Solihull.

Work will start immediately on the Chelmsley Wood and Woodgate Valley sites,
with the new premises being available for the local community in early 2005.

Note to editors

Carillion already has an extensive portfolio of fully operational PPP hospitals
and contracts for facilities management in other NHS hospitals. It is also
currently the preferred bidder on two overseas PPP hospitals - the new William
Osler Hospital and the Royal Ottawa Hospital in Ontario, Canada- together worth
around £1.8 billion of construction, maintenance and facilities management.

Carillion is also a principal supply chain partner for the NHS ProCure 21
national framework and is committed to providing demonstrable benefits to NHS
Trusts through the delivery of high quality, affordable and sustainable
solutions that enhance the healing environment and demonstrate value for money.

The contract joint venture - The Carillion Prime Partnership - comprises
Carillion plc and PRIME, a specialist development company based in Worcester.
For further information on Prime, the contact details are Isabelle Stanley,
Prime media contact 01242 577277 email: [e-mail]


For further information contact
John Denning, Director Group Corporate Affairs      01902 316384
Jane Smith, Corporate Communications                01902 316620



                      This information is provided by RNS
            The company news service from the London Stock Exchange