Disposal

Carillion PLC
12 May 2004



12 May 2004


Carillion to sell Crown House

Business and construction services company, Carillion plc, has agreed the sale
of its mechanical and electrical engineering business, Crown House, to Laing
O'Rourke plc.

The sale includes the transfer of all live Crown House contracts. Carillion will
retain responsibility for a small number of contracts that are complete and on
which final settlements are in the process of being agreed. Employees within the
Crown House business will transfer to Laing O'Rourke.

The total price for the sale is £17.3 million, receivable in cash. This will
generate a net exceptional profit of £9.9 million. The price is subject to a net
asset adjustment at completion.

In addition, goodwill of £55.1 million relating to the original purchase of
Crown House has been previously written off to reserves. In accordance with FRS
10, this goodwill will be charged to profit as part of the exceptional item
arising from the sale and credited to reserves, with no effect on net assets.

Commenting, Carillion chief executive, John McDonough said, 'The sale of Crown
House is in line with our consistent strategy for sustainable profitable growth
as it strengthens the focus of our management and resources on the development
of our Business Services and Private Finance activities, alongside a strong but
selective construction business'.

The sale proceeds will be used by Carillion to progress its strategy for growth,
organically and by acquisition.

Completion of the sale is expected by the end of June 2004.

For further information contact

John Denning, Director Group Corporate Affairs, Carillion plc 01902 316426





                      This information is provided by RNS
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