JV contract with Network Rail

Kier Group PLC
02 April 2008



                                                                    2 April 2008




Kier awarded preferred bidder status on £500m property development joint venture
                               with Network Rail





Kier Group plc (Kier) announces that it has been awarded preferred bidder status
to create a property regeneration partnership (PRP) by way of a 50:50 joint
venture between Kier Property Limited and Network Rail. The PRP will work
towards the sustainable regeneration of its initial portfolio of six station
sites at Enfield Town, Epsom, Guildford, Maidstone East, Twickenham and
Walthamstow and a further site at Wembley Cutting which have a gross development
value in excess of £500m.


This innovative joint-venture will bring together Kier's development expertise
and the commercial potential of Network Rail's estate to regenerate these
important town-centre sites through the provision of new residential, retail and
office accommodation along with new facilities for passengers.


Kier Group plc Chief Executive John Dodds said: "We are delighted to have been
awarded preferred bidder status for the Network Rail property regeneration
partnership, which recognises the ability of the Kier Group to bring together
expertise from across its operations to work with clients to provide innovative
solutions."


                                    - ENDS -



For further information, please contact:

John Dodds, Chief Executive
Deena Mattar, Finance Director
Kier Group plc                                    Tel: [phone]


Matthew Moth/Caroline Sturdy
Madano Partnership                                Tel: [phone]



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