Re Contract

Mears Group PLC
5 February 2002

Mears Group PLC - Re. Contract


Mears Group PLC ('Mears') is delighted to announce a most significant contract
development.

Mears have been selected as preferred partner by Richmond Housing Partnership
(RHP) a Registered Social Landlord which took transfer of the London Borough of
Richmond's housing stock in July 2000. The contract, which is expected to be
entered into shortly, is to provide day to day repairs and planned maintenance
services to the RHP 6,500 rented homes and 1,500 leasehold properties. The
partnering contract will be developed jointly over the next 10 years, providing
excellence in both service and value for money to RHP and it's residents.

The total project is valued at more than £130 million, with approximately £40
million in reactive maintenance and voids repairs and a further £90 million to
upgrade the general quality of the homes through kitchen and bathroom renewal,
window and door replacement, re-roofing and environmental improvements. There
will also be an active programme of cyclical repairs and decorations.

This strategic partnership is based on the principles of Sir John Egan's report
on 'Rethinking Construction' and the Directors believe that it is one of the
largest and most innovative contracts so far let in the social housing sector.
The project commences on 1 April 2002 with a full partnering contract targeted
for September 2002.

This award almost doubles the size of the Mears forward order book to £280
million.

Bob Holt, Chairman of Mears commented 'This is a fantastic opportunity for the
Group. RHP have demonstrated real commitment to partnering as a route to
guaranteeing high quality services and excellent value for their customers on a
continuous basis. We are totally committed to building long term relationships
with our clients which allow us to continually develop and improve the service
we provide.'



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