Preferred Partner Agreement

Morgan Sindall PLC
30 January 2006


Morgan Sindall plc
('Morgan Sindall')

The Renaissance consortium, led by Morgan Sindall affordable housing provider
Lovell, announced as preferred partner for Manchester regeneration scheme

Manchester City Council has announced that the Renaissance consortium, led by
affordable housing provider, Lovell, is the preferred partner for the
redevelopment of Miles Platting in East Manchester which will transform a 107
hectare (264 acre) area. The regeneration scheme will see the refurbishment of
1,600 council properties and the construction of over 1,000 family houses and
apartments.

Financed through a Private Finance Initiative (PFI) and with public money well
in excess of £100 million, building works will begin in early 2007 with a five
year comprehensive refurbishment programme. Construction of new build homes will
begin in 2008. It is estimated that the new build housing scheme will take
approximately eight years to complete.

This programme of refurbishment and new build is potentially worth up to £200
million for Lovell over the period of the redevelopment.

The Renaissance consortium comprises Lovell in partnership with Family Housing
Association (Manchester) Ltd, part of the Adactus Housing Group, and Mill Group
Limited.


Paul Smith, Chief Executive of Morgan Sindall said:

'The Miles Platting scheme in East Manchester is a terrifically exciting
opportunity and we are delighted to lead the preferred partner, the Renaissance
consortium.  This project will make a dramatic difference to the Miles Platting
area.'

                                                                 30 January 2006

Enquiries:

Morgan Sindall plc                                            Tel: [phone]
Paul Smith, Chief Executive
David Mulligan, Finance Director


College Hill                                                  Tel: [phone]
Alex Walters
Matthew Smallwood






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