Re Contract

Carillion PLC
15 December 2005


15 December 2005 

Carillion will reach financial close on major new PPP hospital development in
Portsmouth worth over £1.1 billion

Support services and construction company Carillion is scheduled to reach
financial close today on the new Queen Alexandra Public Private Partnership
(PPP) project - one of the largest hospital projects to date in the UK - for the
Portsmouth Hospitals NHS Trust.

Carillion, in a 50-50 joint venture with The Royal Bank of Scotland, will
finance and build the 1,200-bed acute hospital, which will incorporate acute
treatment facilities from three current locations in Portsmouth.

In addition to the initial construction work, Carillion will also provide
facilities management and maintenance services for the hospital over the course
of the 35-year concession period, generating in total over £1 billion of
turnover for the company.

Commenting, Carillion chief executive John McDonough said, 'Health is one of our
key growth sectors and this new hospital is part of a major procurement
programme of PPP hospitals that underpins the Government's commitment to
improving patient services through working with the private sector to deliver
total healthcare solutions.

'Queen Alexandra Portsmouth is our ninth PPP hospital and financial close
represents a further significant step in consolidating Carillion's position as a
leader in the PPP Health sector.'

Note to editors

Carillion is one of the UK's leading support services and construction companies
with extensive healthcare and PFI experience. As a FTSE 250 company with a
turnover of around £2 billion and over 19,000 employees, the Group delivers
high-quality, cost effective and sustainable solutions using its wide range of
skills and resources. Carillion's key target markets are health, transport (road
and rail infrastructure), building, facilities management and support services
for public and private sector customers.

Carillion already has a significant presence in the health market through PFI
hospital developments and FM services. To date, Carillion has signed eight PPP
hospital projects, as well as one NHS LIFT project, providing construction and
facilities management.

For further information:
John Denning - Director of Corporate Affairs 01902 316384


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