BT Selects Partnership for Facilities Management

Carillion PLC
2 May 2000


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 services 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.

Speaking on behalf of the consortium, Carillion chairman, Sir Neville Simms
says, 'I am delighted our consortium has been selected by BT for this
important contract.   The innovative agreement being adopted has been made
possible through the development of a strong partnership with BT, which I
believe will set new standards for quality and efficiency in the delivery of
integrated facilities management services.

'This represent a major further success for our services business, which,
together with Private Finance and Infrastructure Management, is a key growth
sector for Carillion.'

Notes to Editors

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

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 services 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 services 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 management 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 services 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 £600 million per annum.  Haden's clients
include Shell, HSBC, Barclays, Merrill Lynch, Goldman Sachs, the BBC, British
Gas, National Power, Intel, BAA, Tesco and Sainsburys.   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 country 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 nationwide and the customer base includes over 60 per
cent of the FTSE top 100 companies.

For further information

Carillion      John Denning       01902 316426

Balfour Beatty  Tim Sharp       020 7629 6622

Reliance  Geoff Haslehurst     01895 205000