Re Contract

Carillion PLC
05 April 2004


Carillion awarded track renewals contracts under 5-year framework agreement with
Network Rail.


Business and construction services company Carillion has been awarded contracts
for the renewal of track and switches and crossings under a five-year agreement
with Network Rail, expected to be worth around £50 million in the first year.


Under these contracts Carillion will carry out plain line track renewals in the
West Midlands and switches and crossings renewals in the West Midlands, North
West and Great Western Region. The contracts commence in April 2004.


The new contracts provide opportunities for growth in the volume of work
undertaken and can be extended to up to ten years, depending on performance.


Carillion's existing contract for switches and crossings renewals on the West
Coast Mainline, currently worth around £15 million per annum, will continue.
Overall, the volume of track and switches and crossings renewals carried out by
Carillion is expected to increase by around 40 per cent in the first year of
these new contracts, subject to finalising work programmes.


Commenting on the awards, Paul Kirk, Managing Director of Carillion Transport,
said, 'We are delighted with the award of these new contracts, which I believe
reflects Carillion's absolute focus on safety, quality and performance.


'We look forward to working with Network Rail to deliver its multi-billion pound
renewals programme to rebuild Britain's rail infrastructure and to improve
efficiency and value for money for all renewals activities.'



Notes to editors


Carillion is one of the UK's leading business and construction services
companies and a major supplier of rail infrastructure services. In addition to
the renewal of track and switches and crossings, Carillion carries out a wide
range of enhancement projects for Network Rail that generate the largest
proportion of its turnover in the rail sector. Carillion also maintains Phase I
of the high-speed Channel Tunnel Rail Link and is constructing Phase II of the
Link. Overseas, Carillion is developing its presence in the growing Scandinavian
rail infrastructure market through Swedish Rail Systems, which it acquired in
June 2003.


For further information contact


John Denning, Director Group Corporate Affairs, 01902 316384.






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