Re Contract

Kier Group PLC
13 May 2005

                                                                     13 May 2005



        Kier signs United Utilities framework contract in joint venture





KMI Plus, the joint venture between Kier Construction, J Murphy and Sons Limited
and Interserve Project Services has won its bid to deliver a £400m contract over
five years for United Utilities under a Process Partnership Framework Agreement.
  The contract, signed yesterday, relates to water and wastewater process work
in the north-west of England until 2010, and has the potential to be extended
for a further five years.



Under the new framework agreement KMI Plus will be responsible for the detailed
design, construction and final commissioning of improvement projects, both on
the water and wastewater networks, in the north of United Utilities' operating
area.



Kier Group chief executive John Dodds commented:  "As part of KMI Plus, Kier is
delighted to have the opportunity to continue to build on our successful
partnership with United Utilities.  The integrated alliance is a new and
exciting challenge with all partners working towards improved delivery.  This
contract award affirms our growing position in, and commitment to, the water
industry."

                                    - ENDS -

For further information, please contact:



Deena Mattar, Finance Director

Kier Group plc                 Tel: [phone]



Caroline Sturdy

Madano Partnership             Tel: [phone]


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