Sale of a PFI Investment

Kier Group PLC
10 January 2005


                                                                 10 January 2005


                       KIER SELLS A PFI EQUITY INVESTMENT

Kier Group plc has sold its 25.5% equity and loan stock interests in the Neath
Port Talbot Hospital concession to Secondary Market Infrastructure Fund UK LP.
Kier has received a cash consideration of £5.0m representing over twice the
value of the original investment in the project.

Kier Support Services will continue to provide non-clinical facilities
management services at the Hospital where it has a 30 year contract which
commenced in 2002.

Commenting, Kier Chief Executive, John Dodds said: "This sale demonstrates the
value of our PFI portfolio to shareholders which, after disposals, stands at a
committed book value of £16m.

"We remain committed to providing facilities management services to the Neath
Port Talbot Hospital and to continuing our long term relationship with the Bro
Morgannwg NHS Trust".


                                    - ENDS -




For further information, please contact:

John Dodds, Chief Executive
Kier Group plc                                                 Tel: [phone]

Caroline Sturdy
Madano Partnership                                            Tel: [phone]


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