BT Selects Partnership for Facilities Management

Reliance Security Group PLC
2 May 2000



                       RELIANCE SECURITY GROUP PLC
                                    
              BT Selects Partnership for Major FM Contract


BT  has selected a partnership led by Carillion with Balfour Beatty  and
Reliance  Integrated Services as its preferred supplier for the delivery
of facilities management services to over 8,500 of its buildings.

Subject  to  the  satisfactory conclusion  of  final  negotiations,  the
proposed contract is likely to be worth over £500 million, making it the
largest private sector facilities management contract to date in the UK.
The  contract period will be five years, but there will be an option  to
extend  this  through  the  inclusion of an  'evergreen'  clause,  which
reflects the partnering philosophy that is fundamental to the contract.

The  partnership has worked closely with BT to develop a ground breaking
model  agreement  under  which the management of  all  BT's  FM  related
services will be brought together into an integrated solution that  will
deliver  improved and sustainable standards of service across the  whole
of BT's estate.

The  facilities  management services to be provided range  from  support
services  for  cleaning and catering to maintenance  of  the  fabric  of
buildings  and  external  ground  maintenance.  The  buildings  involved
include  large  offices, computer centres, research  centres,  telephone
engineering centres, motor transport workshops and telephone exchanges.

Brian Kingham, Chairman of Reliance Security Group, said:

'We   are  delighted  to  have  been  chosen  by  BT  against  extensive
competition.  We look forward to providing high added value  through  an
innovative approach for an organisation that is at the forefront of  the
revolution in communications and information technology'.



Notes to Editors

Under  the  terms  of the partnership, Carillion has  a  51%  share  and
Reliance  Integrated  Services and Haden Building Management  each  have
24.5%.

The  proposed model for the agreement with BT is based on the principles
of  franchising,  with the partnership led by Carillion  acting  as  the
enabling organisation, managing change and innovation through a  network
of  eight  Regional  Service Providers, who will adopt  common  systems,
processes, and work practices to deliver consistent standards.

The eight Regional Service Providers will be formed by bringing together
BT's   existing  best  practice  suppliers  to  create  a  multi-skilled
workforce capable of delivering the full range of services required.  In
addition  to  their enabling role, the members of the  partnership  will
also  be  service providers through this regional structure.  Some  4000
people will be employed across the regional businesses.

The model is highly flexible, enabling the services identified now to be
provided  efficiently, while accommodating changes in services to  match
the size and scope of BT's estate.

E-commerce  will be used extensively for the procurement  of  goods  and
services  and  a  'data warehouse' will be created  to  facilitate  open
access to information and a linkage to BT's 'Legacy' systems.

Carillion  is  one of the UK's leading construction to  services  groups
with  an  annual  turnover of around £1.8 billion.  Its service  related
businesses,    in   the   areas   integrated   facilities    management,
infrastructure management and Private Finance, have been the  focus  for
growth  over the last five years and now have an aggregate  turnover  of
some  £650 million.  Carillion Services is already the leading  supplier
of  non-clinical  support services to the NHS,  a  leading  supplier  of
property maintenance services to the Ministry of Defence, the manager of
the  Metropolitan  Police  Estate and a  leading  supplier  of  building
control and property legislation services.

Haden  Building  Management,  is  one of  the  country's  leading  asset
management and facilities management service providers.  It is  part  of
Balfour Beatty, the £2.5 billion international engineering, construction
and  services  group, which has a support services  business,  of  which
Haden Building Management is a part, currently worth more than £600m per
annum.   Haden's  clients include Shell, HSBC, Barclays, Merrill  Lynch,
Goldman  Sachs, the BBC, British Gas, National Power, Intel, BAA,  Tesco
and  Sainsbury's.    Balfour Beatty's other support services  activities
include  rail  maintenance  for  a  number  of  Railtrack  areas,   road
management  and  maintenance for the Highways Agency  and  a  number  of
county   authorities  and  power  system  management  for   the   London
Underground.

Reliance  Integrated Services Limited is a provider of innovative  total
facilities  management solutions to industrial and corporate  customers.
It  is  part  of Reliance Security Group plc which has grown organically
over  the  last  25  years.  Reliance provides a wide range  of  support
services  and  is  an  established market leader  in  the  provision  of
contract  security  management, manpower  and  electronic  surveillance.
With  a turnover in excess of £130 million per annum and employing  over
7,500 people, the company operates from more than 30 offices nation-wide
and  the  customer  base  includes over 60%  of  the  FTSE  Top  100  UK
companies.

For further information contact

Reliance          Geoff Hazlehurst                        01895 205000
Carillion         John Denning                            01902 316426
Balfour  Beatty   Tim  Sharple                            020 7629 6622