Re Contract

Kier Group PLC
10 May 2005

                                                                     10 May 2005


               Kier signs Sheffield PFI schools contract for £97m


Kier Group plc, a member of the Academy Services (Sheffield) Ltd consortium
comprising Dexia Public Finance Bank and Kier Group, has signed a contract to
build four new schools for Sheffield City Council under the private finance
initiative (PFI).  The project is valued at £97m.


The Kier project team comprises PFI specialist Kier Project Investment,
contractors Kier Northern and Kier Build, and facilities management subsidiary
Caxton as service provider for the 25-year term.


Commenting, Kier Group Chief Executive John Dodds, said: "We look forward to
working closely with Sheffield City Council in the provision of these new
schools and aim to demonstrate how well our companies work together to add value
and deliver success."


Kier has a strong presence in Sheffield; the company, as part of Kier Sheffield
LLP, undertakes the outsourcing of the City Council's buildings repairs and
maintenance for its 60,000 council houses.


                                    - ENDS -


For further information, please contact:


John Dodds, Chief Executive

Kier Group plc                     Tel: [phone]


Deena Mattar, Finance Director

Kier Group plc                     Tel: [phone]


Caroline Sturdy

Madano Partnership                 Tel: [phone]


                      This information is provided by RNS
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