Oldham PFI Financial Close

Kier Group PLC
25 May 2006

                                                                     25 May 2006


               Kier reaches financial close on Oldham PFI schools


Kier Group, in partnership with Dexia Public Finance Bank (Academy Services),
has now reached financial close on its bid to provide two new schools for Oldham
Borough Council under the private finance initiative (PFI).  The project has a
net present value of £97m.

The Kier project team comprises PFI specialist Kier Project Investment and
facilities management subsidiary Kier Managed Services as service provider for
the 25-year term.  Construction of the new schools, to replace the existing
Failsworth and The Radclyffe secondary schools, will be carried out by Kier
Build and Kier North West under a £54.4m construction contract.

Both schools are scheduled to open in February 2008.

Kier Group chief executive John Dodds commented:  "We are delighted that
contracts have now been signed with Oldham Council and look forward to working
closely with them to deliver these new schools as part of the Government's
national education initiative."


                                    - ENDS -


For more information, please contact:

Deena Mattar
Kier Group plc                   Tel:  [phone]

Caroline Sturdy
Madano Partnership               Tel: [phone]



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