AGM Statement

Carillion PLC
16 May 2001

Carillion plc AGM - Chairman's Statement

Speaking at the Carillion plc Annual General Meeting in Birmingham today,
Chairman Sir Neville Simms says,

'In the first few months of this year, the Group has successfully secured
further new contracts in line with its strategy. In March, Monteray, a
Carillion led consortium, signed the project 'Jaguar' contract with B.T. to
provide integrated facilities management services. Worth in excess of £500
million over five years, this is the largest outsourcing contract of this kind
let by the private sector in the UK. Financial close has been achieved on the
new Manchester Magistrates Court, the fifteenth PFI project we have secured,
and our joint venture rail maintenance business, GTRM, has been awarded
contracts worth over £360 million by Railtrack. The largest of these is a
five-year contract to maintain the West Coast Mainline between Crewe and
London Euston, where we shall be working in alliance with Railtrack and
building on the strong partnership that has grown out of our commitment to
quality and safety throughout all our rail businesses.

'In addition to these successes, overall progress on ongoing contracts and the
restructuring of Crown House Engineering has continued broadly in-line with
our expectations. Consequently, with our main markets holding firm and
industry forecasts suggesting that these markets are unlikely to be notably
affected in the short term by any slow down in the US economy, trading in the
current year remains in-line with expectations, although this year, due to the
timing of PFI contract awards and the prudent accounting for the costs
associated with bidding for these, there will be a significantly greater than
usual weighting of profit towards the second half.

'Today I can also tell you that, consistent with our previously indicated
intention to focus our construction activities on the areas where we can add
most value, we have signed a heads of terms agreement for the sale of
Carillion Housing, about which a separate announcement is being made to the
Stock Exchange this morning.

'As well as focusing on its strategic objectives, the Group will continue to
embrace its new approach, away from the adversarial models that have
characterised our industry in the past, towards one which embraces our core
values of openness, collaboration and mutual dependency, coupled with
professional delivery, a constant search for innovation and the delivery of
sustainable growth in profits and cash flow.

'Going forward, the recently announced restructuring of the senior team under
John McDonough will, I believe, make our management more efficient and
effective in accelerating the adoption of the Group's core values and in
delivering the Group's key objective of continually enhancing shareholder
value.'

For further information contact John Denning or John Davies on 01902 316444