Re Contract

Mears Group PLC
19 November 2007


19 November 2007


              Mears wins major strategic partnership in Sedgefield


Mears Group PLC is delighted to announce the award of a major new £89m
partnership contract in Sedgefield in the North East of England. The contract
term is 5 years with a possible 2 year extension and is subject to adequate
funding arrangements by the local authority. This strategic partnership covers
all aspects of housing repairs, maintenance and decent homes across the 8,500
properties in Sedgefield Borough Council. Existing Sedgefield employees will be
transferred to Mears under the transfer of undertaking arrangements (TUPE).


Chairman Bob Holt commented:


'This is the second major partnering contract won by Mears in the last 5 weeks
and we are confident that further contract awards will follow. In very short
order we are back on track to exceed our target for new contract wins in 2007.


In the first half of 2007 our business development team returned to a more
selective bidding process, a principle which proved highly successful in the 10
years up to 2006. This personalised, selective approach has positioned the Group
back at the cutting edge of the Social Housing sector and I applaud the Mears
development team under Darren Pace in delivering another substantial new
partnership.'


Enquiries


Mears Group PLC

Bob Holt 07778 798 816


Investec

Keith Anderson

020 7597 5970


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