Re Contract

Kier Group PLC
03 June 2004




                        Kier signs up £80m PFI Contract

Kier Group plc ("Kier"), the major construction, support services, homes and
property group in joint venture with Barclays Capital, has signed contracts with
Oldham Borough Council to provide a library and lifelong learning centre under
the private finance initiative (PFI). The project is valued at £80m over 25
years.

Kier Regional will build the £13m state of the art library in a prominent
location in Oldham town centre. When complete, the library facilities will be
operated and maintained by Caxton FM, Kier Group's facilities management arm.

Kier Group Chief Executive, John Dodds, commented:

"I am delighted that we have achieved financial close on our second library
project under the PFI, following the Bournemouth library project which was
completed in March 2002. The library at Oldham represents a land mark scheme for
the local community and we look forward to delivering another successful
project, working in close partnership with the Council."


                                    - ENDS -



For further information, please contact:



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

John Coles
Sarah Landgrebe
Bell Pottinger Corporate & Financial     Tel: [phone]







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