Re Contract

Carillion PLC
23 March 2005


23 March 2005

Carillion reaches financial close on £150 million Scottish schools PPP project

Support services and construction company Carillion and its joint venture
partners have achieved financial close for a PPP project to build 10 new schools
on the outskirts of Glasgow, worth around £150 million to Carillion including
construction and concession company turnover.

Carillion will carry out £100 million of new build on nursery, primary and
secondary schools for Renfrewshire Council as part of a joint venture with Amey
and Bank of Scotland Corporate to provide state of the art facilities for over
6,000 children located in Paisley, Linwood and Johnstone. Construction is due
for completion in December 2007. Carillion also expects to invest some £4
million of equity in the Special Purpose Concession company.

Commenting on the project, Carillion's chief executive John McDonough said: 'We
are delighted to have reached financial close on the Renfrewshire schools
project.

'Our integrated approach to the provision of educational solutions to meet a
wide variety of needs is designed to provide optimum flexibility in the
constantly evolving world of education. The provision of ten new facilities
across nine sites through this public-private partnership will create first
class accommodation to meet the combined needs of full-time education and
community learning.'

He added: 'This win adds to the considerable success we have already achieved in
the education sector over the past year. This is an increasingly important
growth sector for Carillion and we expect further opportunities to bid for PPP
and non-PPP projects under the Government's £25 billion Building Schools for the
Future programme.'

Notes to editors

Equity in the project is split as follows: Amey: 35%, Bank of Scotland
Corporate: 35%, Carillion: 30%

Carillion is the preferred bidder on three other PPP projects - the Queen
Alexandra Hospital in Portsmouth, an Independent Sector Treatment Centre in
Basildon and a social housing project in North East Derbyshire, together worth
£1.2 billion

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






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