Contract Award

Kier Group PLC
15 October 2001


                                                               15 October 2001

  KIER SIGNS ITS FIRST PUBLIC PRIVATE PARTNERSHIP EDUCATION PROJECT FOR £58M

Kier Group plc, the construction, support services and homes group, announces
the signing of a further PPP project by its Infrastructure Investment
division, its first in the education sector.

Academy Services (Tendring) Limited, a consortium of Kier (50%) and Dexia
Public Finance Bank (50%), has achieved financial closure on the Tendring
Primary Schools PPP project with Essex County Council, valued at £58m.

Academy Services (Tendring) Limited will rebuild, remodel or refurbish twelve
primary schools in North East Essex and will run the premises-related services
for a 32-year period. Two Kier Group companies will operate this project;
French Kier Anglia will undertake the £15m design and build contract and
Caxton Integrated Services will provide facilities management under a 32-year
contract valued at £0.7m per annum.

Colin Busby, Chairman of Kier Group, commented:

'I am pleased that we have achieved our first education PPP project. PFI and
PPP will continue to play an increasing part in the provision of
infrastructure in education, health and many other vital public services and
Kier will continue to play its part in these initiatives.'

                                   - ENDS -

For further information, please contact:

Deena Mattar

Kier Group plc              Tel: [phone]

Caroline Sturdy

Bell Pottinger Financial    Tel: [phone]