Re Contract

Carillion PLC
11 January 2007


11 January 2007

          Carillion reaches financial close on South Ayrshire schools 
                 PPP contract with a capital value of £76 million

Support services and construction company Carillion has achieved financial close
on a contract with a capital value of £76 million to build six new Public
Private Partnership (PPP) schools in South Ayrshire.

Education 4 Ayrshire Ltd, a joint venture between Carillion plc (47.5%), Bank of
Scotland Corporate (47.5%) and Cyril Sweett Holdings Limited (5%), will design,
build and operate six new schools for South Ayrshire Council under the 32.5 year
concession. Bank of Scotland Corporate will also be providing the debt
facilities for the transaction.

The project involves the design, construction, maintenance and facilities
management for two new senior schools (Prestwick and Belmont), three new primary
schools (Alloway, Barassie, and Monkton) and an extension to Kyle Academy.

Carillion will invest some £3.2 million of equity in the project and also carry
out the construction work, worth £76 million over the course of two and a half
years.

Carillion chief executive John McDonough said: 'Education is a key growth sector
for Carillion. Therefore, we are delighted to achieve financial close on our
second contract in Scotland for PPP schools and look forward to working with
South Ayrshire to provide the new facilities. Our success in this sector
reflects our ability to provide integrated solutions that meet a wide variety of
needs and provide optimum flexibility in the constantly evolving world of
education.'

Notes to Editors

Carillion is a leading provider of integrated solutions for buildings,
infrastructure and services in the UK, with well-established businesses
internationally. As a FTSE 250 company with annual revenue in the region of £4
billion and around 50,000 employees, the Group delivers high quality,
cost-effective and sustainable solutions using its wide range of skills and
resources. Its key target markets are education, health, defence, transport
(rail and road infrastructure), building and facilities management and support
services for public and private sector customers.

Carillion's first education PPP contract in Scotland was the £100m Renfrewshire
Schools project for the construction of nine new schools, four of which are now
open, with the remainder due for completion by December 2007.

The facilities management contract for South Ayrshire Schools PPP will be
carried out by Mitie plc.

For further information contact
John Denning, Director Group Corporate Affairs                01902 316384



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