Re Contract

Carillion PLC
31 January 2008


31 January 2008

Carillion joint venture appointed preferred bidder for £208 million Nottingham
Building Schools for the Future contract

Support services and construction company Carillion and its joint venture
partners, The Local Education Partnership (LEP), has been appointed as the
preferred bidder for the £208 million Nottingham Building Schools for the Future
(BSF) programme.

The LEP will deliver eight secondary schools in the current wave of the BSF
programme, primarily through new build with some refurbishment and remodelling.
In addition, there is potential to provide three new-build Academy Schools.

Carillion will invest equity of around £2.25 million in the project. Work will
begin in mid-2008 and will be completed by the end of 2010.

The construction element of the contract is valued at £180 million and Carillion
will also provide facilities management services for three of the new schools
over the 25-year concession contracts, worth approximately £28 million.
The LEP will also deliver further new schools for Nottingham City Council in
subsequent waves of the BSF programme and may deliver other community and
regeneration projects, subject to receiving the necessary approvals.

Commenting, Carillion chief executive, John McDonough, said: 'We are delighted
to have achieved preferred bidder status on our third project under the BSF
programme, which we expect to be a strong growth market for the Group,
reflecting our ability to use our wide range of skills and resources to provide
fully integrated solutions.

'Nottingham City Council is a leader in sustainability among local authorities
and Carillion's strength in developing sustainable solutions was an important
factor in our success. Working in partnership with Nottingham City Council, we
have created a vision for this project to meet the high standards of sustainable
development set by the City Council. For example, for new-build schools
bio-diesel combined heat and power technology will enable up to 70% of their
energy requirements to be generated on site from renewable sources.'

-Ends -

Notes to editors

The Local Education Partnership comprises Nottingham City Council, Partnerships
for Schools, Carillion and Royal Bank of Scotland. Nottingham City Council and
Partnerships for Schools will each provide 10% of the equity, with the remainder
being provided by Inspiredspaces, a joint venture between Carillion (40%) and
Royal Bank of Scotland (40%).

Carillion plc is one of the UK's leading support services, construction and
Public Private Partnership project companies. The Group has annual revenue of
around £4bn, employs over 40,000 people and operates across the UK, in the
Middle East, Canada and the Caribbean.

In the UK, Carillion has eight principal market sectors - Education, Defence,
Health, Building, Facilities Management and Services, Roads, Rail and Civil
Engineering.

In the Middle East, the Group's two principal market sectors are Construction
and Facilities Management. In Canada and the Caribbean, the Group's main sectors
are Health, Roads Maintenance and Construction.

The Group is a leader in Public Private Partnership projects, particularly in
the Defence, Education and Health sectors in the UK and in the Health sector in
Canada.

Carillion's education portfolio includes the South Tyneside and Gateshead BSF
project, which reached financial close in December 2007, the Nailsea School BSF
which achieved preferred contractor in January 2008, and 39 other schools
provided under Public Private Partnership projects.

This and other news releases relating to the Group can be found at
www.carillionplc.com.

For further information contact
John Denning, Director Group Corporate Affairs, Carillion plc 01902 316426



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