Re Contract

Carillion PLC
25 July 2003

Carillion appointed preferred bidder for major new PPP hospital
development in Portsmouth worth over £1 billion

Business and Construction Services group Carillion has been appointed preferred
bidder by the Portsmouth Hospitals NHS Trust for the new Queen Alexandra Public
Private Partnership (PPP) project - one of the largest to be awarded to date in
the UK.

Carillion, in a 50-50 joint venture with The Royal Bank of Scotland, will
provide the development of a single 1,200-bed acute hospital comprising new
build and reconfiguration of existing facilities. This will incorporate acute
facilities from three current locations in Portsmouth.

Carillion will carry out the construction work worth £200 million in addition to
providing facilities management and maintenance services over the course of the
33 -year concession period making a total value of approximately £1 billion.

Commenting on the appointment, Carillion chief executive John McDonough said, '
Health is one of our key growth sectors and this new hospital is one of a number
of important new developments that underpin the Government's commitment to
improving services through working with the private sector to deliver total
healthcare solutions.

'Being appointed preferred bidder on our seventh PPP hospital is therefore a
further significant step in the development of Carillion Health, which draws
together the extensive skills and expertise we have in this sector.'

Welcoming the announcement, Alan Bedford, Chief Executive of the Trust said: '
The people of Portsmouth and South East Hampshire deserve a comprehensive new
general hospital on one site and we are excited about working with Carillion to
deliver such a hospital.'

Note to editors

Carillion was appointed preferred bidder for its first NHS Primary Care contract
worth around £80 million for Birmingham and Solihull LIFT (Local Improvement
Finance Trust) in June.   This involves the development, construction, provision
of facilities management and financial backing for doctors' surgeries and other
primary care facilities.  The contract is a joint venture with specialist
development company PRIME.

Carillion has also been chosen as preferred bidder on the £600 million Oxford
Radcliffe Hospital PPP project and the 608 bed William Osler Health Centre in
Ontario, Canada, valued at around £800 million.

For further information:

Paula Manning, Corporate Communications 01902 316377


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