Statement re Network Rail

Carillion PLC
16 August 2006



Carillion disappointed by Network Rail's decision to suspend it from tendering
for new rail projects.

Carillion is disappointed by Network Rail's decision to announce today the
suspension of Carillion Rail from tendering for new rail projects until its
workforce safety performance improves.

Carillion is committed to the highest standards of Health and Safety and is the
first company in its sector to set a target of zero workplace accidents.
Carillion's safety record stands comparison with the best in our sector and
overall the workplace safety performance of our rail business has, until
recently, also been comparable with that of our peers.

Carillion acknowledges that there was an increase in less serious workplace
accidents in Carillion Rail between mid-June and mid-July, during which time we
were undertaking a major restructuring of our rail business. However, while we
share Network Rail's objective of improving workforce safety and regard any
accident as unacceptable, we believe that Network Rail's decision is wholly
disproportionate to our overall performance in respect of workplace safety.

As part of our Target Zero campaign we will continue to target improvements in
workforce safety performance and would expect Network Rail to reinstate
Carillion Rail as soon as this returns to previous levels or better.

Carillion Rail generates approximately five per cent of the Group's annual
revenue from contracts with Network Rail and this is already reducing as a
result of refocusing our rail business on sustainable areas of the UK market,
which, as previously indicated, is declining. Therefore, Network Rail's decision
will have no material effect on the Group's earnings expectations in 2006 or
2007.

For further information

John Denning, Director Group Corporate Affairs, Carillion plc 01902 316384


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