Re Contract

Kier Group PLC
07 February 2005



                        KIER NAMED PREFERRED BIDDER FOR

                         £26M IPSWICH TREATMENT CENTRE


Kier Group plc announces that Prospect Healthcare, a joint venture comprising
Kier Project Investment and HSBC, has been named preferred bidder for a new £26m
treatment centre for The Ipswich Hospital NHS Trust.  The PFI contract involves
financing, designing, building and maintaining the facilities under a 30-year
concession.


The centre will be built by Kier Regional and will be maintained by Caxton FM, a
Kier Group company.


Deena Mattar, Chairman of Kier Project Investment, commented: "Kier looks
forward to working in partnership with the Trust to successfully deliver this
state-of-the-art facility for the benefit of the local community."


                                    - ENDS -


For further information, please contact:

Deena Mattar, Finance Director
Kier Group plc                                          Tel: [phone]


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