AGM Statement

Carillion PLC
12 May 2004


12 May 2004

Carillion plc Annual General Meeting 2004 Chairman's Statement


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

'The basis for the Group's success continues to be its consistent and effective
strategy for long-term sustainable growth, supported by its ongoing drive for
cost reduction and performance improvement.

'Restructuring during 2003 to create three new business groups - Health,
Transport and Business Services - together with the acquisition of Swedish Rail
Systems and the disposal of four more non-core businesses, has further enhanced
the Group's ability to deliver its strategy for growth, strengthened customer
focus and improved operational efficiency.

'The Group has also announced separately today that it has agreed to sell its
mechanical and electrical engineering business, Crown House, to Laing O'Rourke
for £17.3 million.

'The Group entered 2004 with a strong order book of some £5 billion and its
largest ever pipeline of probable orders worth around £2.5 billion. Trading
conditions continue to be positive and the Group has won new orders worth over
£850 million in the first four months of the year, increasing its order book to
around £5.2 billion.

'Notable successes during this period include rail infrastructure contracts
worth over £400 million, reaching financial close on the £130 million A249 PPP
project, road maintenance contracts in the UK and Canada worth over £120
million, £120 million of UK building and overseas construction contracts and a
£50 million facilities management contract for the NHS.

'Discussions with Network Rail on the transfer of rail maintenance contracts to
Network Rail are well advanced and we expect to reach agreement on the terms of
the transfer in time for this to take place in July 2004.

'Despite the loss of these maintenance contracts, Carillion will continue to
have a strong and substantial rail infrastructure business. In addition to the
Group's recent success in winning new rail contracts, further opportunities for
growth are expected in the UK and in Scandinavia.

'Therefore, with its strong order book and focus on growing markets in which it
holds well-balanced positions, the Carillion Group remains firmly on track to
deliver healthy earnings growth in 2004 and beyond.'

Sir Neville also announced today that the Board is reviewing its independent
director structure to reflect the strategic direction of the business. The Board
expects to appoint a number of new non-executive directors, including a new
Chairman designate. Once the new appointments have settled in, Sir Neville will
stand down as Chairman and as a Director of the company. This process is
expected to be completed before next year's AGM.


For further information

John Denning, Director Corporate Affairs, Carillion plc 01902 316426




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