Re Contract

Kier Group PLC
18 February 2002



                     KIER GROUP JOINT VENTURE AWARDED £245M
                    WATER INFRASTRUCTURE FRAMEWORK AGREEMENT
                              BY UNITED UTILITIES



Kier Group plc announces that KMI Water, the joint arrangement comprising Kier
Construction, J Murphy & Sons and Interserve Project Services, has been awarded
a £245m water infrastructure framework agreement by United Utilities, the
North-West's leading provider of water and wastewater services. The framework
agreement is to construct a variety of water infrastructure projects throughout
West Lancashire and North Manchester over the next three years.

KMI Water is one of three consortia selected by United Utilities to undertake
water contracting work throughout the North West of England. KMI Water will be
responsible for the central region project, the largest by value of the three,
extending East to West, from Liverpool to Oldham and North to South from Burnley
to Warrington. As part of the agreement, Kier and its partners will undertake
120 water-related projects ranging in value from £0.1m to £35m including new
build and refurbishment work.

Commenting on the contract, Kier Group chairman Colin Busby, said: 'We are
delighted to have been awarded this framework agreement by United Utilities
which further strengthens our presence in the water utilities sector.'



                                    - ENDS -

For further information, please contact:

Colin Busby
Kier Group plc                          Tel: [phone]

Caroline Sturdy
Bell Pottinger Financial Ltd                     Tel: [phone]



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