Re Contract

Carillion PLC
23 October 2006



23 October 2006

Carillion joint venture awarded £363 million East London Line contract

Support services and construction company Carillion plc announces today that, in
joint venture with Balfour Beatty, it has been awarded the £363 million contract
to create the new East London rail line between Dalston Junction in the North
and West Croydon in the South, by Transport for London (TFL).

The project, which is the first of two phases, will extend the existing East
London Line to Dalston Junction in the North and New Cross Crystal Palace and
West Croydon in the South. It is scheduled for completion in late 2010.
Construction works will begin in early 2007. Some additional work, not covered
by the base contract for Phase1 could be commissioned from the joint venture
over the next few months.

Commenting, Carillion Chief Executive John McDonough said, 'We are delighted to
have been selected for this project, which is the cornerstone of Transport for
London and the Mayor's £10 billion investment programme to give London a 21st
century transport system. Carillion's ability to combine its wide range of
capabilities and strong project management skills to provide complex integrated
solutions is a key strength and we look forward to working with Transport for
London to deliver this major component of London's transport infrastructure.'

Phase 2 of the project will further extend the line west to Clapham Junction and
connect the North London Line stations at Canonbury and Highbury & Islington.

Proposals to build the new line helped to underpin London's successful bid for
the 2012 Olympic Games. The project will not only play a major role in
transporting people to and from the 2012 Olympic Games, but also trigger
substantial development and regeneration initiatives in some of London's most
deprived boroughs.

The contract will involve railway works including track, signalling,
telecommunications and electrification, and major civil engineering works
including the construction of two large new bridges, new stations and a new
depot at New Cross Gate.

Carillion and Balfour Beatty are market leaders in the provision of training in
the construction sector and are uniquely placed to deliver TFL's requirements
for equality, inclusion and diversity through the employment and training of
local people.

For further information please contact

John Denning Director Group Corporate Affairs, Carillion plc 01902 316426
[e-mail]

Notes to Editors

Carillion is a leading provider of integrated solutions for infrastructure,
buildings and services in the UK, with well-established international
businesses. Carillion has annual revenue in the region of £4 billion and has
over 40,000 employees. It delivers high quality, cost effective and sustainable
solutions using its wide range of skills and resources. Its key target markets
are transport (rail and road infrastructure), defence, education, health and
building and facilities management for public and private sector customers.

Carillion is a leader in Public Private Partnership projects, having financially
closed 36 PPP projects. Following the profitable disposal of a number of its
equity holdings in these projects, Carillion's current portfolio comprises 23
projects in which it has invested, or has commitments to invest, approximately
£159 million of equity. The directors' valuation of this portfolio is £216
million, based on discounting the cash flows from these equity investments at an
average of eight per cent.

Carillion has also carried out a number of successful projects in joint venture
with Balfour Beatty, including the West Coast Mainline Overhead Line project for
Network Rail and the construction of the M6 toll-way in the Midlands.




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