Re Contract

Kier Group PLC
28 March 2006


Kier reaches Financial Close on Ipswich Garrett Anderson Centre

Kier Group plc, a member of Prospect Healthcare, comprising Kier Group and HSBC,
has reached Financial Close on a new £26m treatment centre for The Ipswich
Hospital NHS Trust. The £41m private finance initiative project will involve
financing, designing, building and maintaining the facilities under a 30-year
concession.

The four-storey facility will be built by Kier Eastern, providing Ipswich with a
state-of-the-art building on the existing hospital site. The centre will include
a new emergency department, a critical care centre, a day surgery suite, and
theatres and beds dedicated to planned or elective care. Kier Managed Services,
also part of the Kier Group, will maintain the building over the concession
period.

Commenting, Kier Group Chief Executive, John Dodds, said "We are pleased that
Ipswich Hospital Health Care Trust has chosen Prospect Healthcare as its partner
and we look forward to working in partnership with the Trust staff to deliver
the treatment centre for the benefit of the local community."

Ends 27.03.06

Contact: Deena Mattar
01767 640 111



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