Re Contract

Carillion PLC
01 September 2004


1 September 2004

Carillion secures £175 million Middle East Contract

Business and construction services company Carillion has won a £175m contract
through its Middle East joint venture, for the construction of a spectacular 1.8
million square feet multi-level retail, entertainment and hospitality centre in
Dubai, United Arab Emirates.

The centre is part of a showpiece £450 million waterfront development situated
on the 1600-acre Dubai Festival City development, a multi-billion pound
mixed-use project stretching 2.3 miles along Dubai's historic Creek.

The combined floor area of the buildings in this initial phase of the Dubai
Festival City development exceeds six million square feet. This includes new
retail and marine facilities, an interconnected value retail offering, a new
high-rise five-star InterContinental Hotel, a soon to be announced four-star
hotel and a high-rise office complex. Additional under-cover parking for 8,000
cars will also be provided.

'Al Futtaim Carillion is recognised as one of the Middle East's leading
construction companies and this is underlined by securing this showcase
contract,' said John McDonough, Carillion's chief executive.

'There are a number of very impressive developments underway in Dubai and the
Festival City project is one of the most exciting and well planned.

'This latest in Dubai Festival City builds on the good progress we are making in
our international regional businesses with implementing our strategy for growth
by offering customers integrated solutions for infrastructure, buildings and
services.'

'We are creating a world-class 'down-town' waterfront destination and to achieve
this objective, we are in the process of contracting a range of leading
construction companies to join with the owners in making this exciting
'city-within-a-city' a reality,' said Phil McArthur, Director of Marketing &
Leasing, Dubai Festival City.

'In bidding for this first major building contract, Carillion demonstrated its
capability to provide the necessary experience through its international and
local operations to align with our requirements and expectations.'

The initial deep excavations for the centre are virtually complete and
structural foundation work is underway, which comprises two levels of basement
parking and the support foundations for three levels of leasing area above
ground.

The completion of this phase and the superstructure works are being fast-tracked
to be finished by the end of 2005, for the centre's opening in the third quarter
of 2006.

'The centre will be a fascinating structure to observe under construction. The
entire building is crescent-shaped - designed to curve around the man-made
marina; it will rise out of the ground just like a fan, opening out beside the
waters of Dubai Creek,' said McArthur.

'Dubai Festival City's centreplace retail, entertainment and hospitality centre
will be one of Dubai's most exciting destinations for residents and visitors
alike to experience.'

Notes to editors

Comprising 15 distinct development zones, Dubai Festival City is a property
development by the Al-Futtaim Group and is the Middle East's largest,
privately-funded, mixed-use, real estate project.

It will comprise a unique mix of entertainment, dining, shopping, edutainment,
sport and leisure facilities, automotive dealerships, hotels, a marina,
residential and office components.

The first phase of construction is underway with The Al Badia Golf Resort, an
18-hole championship golf course designed by world-renowned golf course designer
Robert Trent Jones II LLC surrounded by Mediterranean style apartments and town
homes, set to open in late 2004.

The centre will be home to approximately 20 international flagship retailers,
leading into a three-level, enclosed retail environment which will be
complimented by unique restaurants, cafes and entertainment venues.

The 1.8 million square foot retail centre will be the focal point of Dubai
Festival City's various lifestyle destinations and will house in excess of 400
retail outlets, cafes and restaurants. Foundation work will also soon start on
the InterContinental Dubai Festival City, an iconic convention hotel situated on
the north-west peninsula of the marina.

For further information, please contact:
John Denning, Corporate Affairs Director on 01902 316384
Paula Manning Corporate Communications Manager on 01902 316444



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