Launch of New Division

Kier Group PLC
5 March 2001


LAUNCH OF CAXTON INTEGRATED SERVICES LIMITED

Kier Group announces the launch of a new operating division, to be known as
Caxton Integrated Services as the next stage of its development into the
facilities management and outsourcing market.

Kier Group has been actively involved in facilities management and outsourcing
for over  five years.  The business has now grown to a size and the market
opportunity is such that Kier believes it is appropriate to form a new
division with a focused management team dedicated to this area.

Bill Latto is appointed as the Managing Director of the new division,
reporting to  Martin Scarth, Group Board Director with responsibility for
support services within Kier Group.

Caxton Integrated Services will initially concentrate on the public sector, in
particular the rapidly developing Best Value outsourcing market, which is
typically characterised by long term contracts on partnering terms.  This will
parallel the Group's progress in private sector outsourcing where Caxton
Facilities Management continues to win major new clients.  The combined
forward order book of Kier's support services operations now stands at £354m,
with these activities employing over 1,000 staff.

Colin Busby, Chairman of Kier Group said, 'Local authorities spend at least
£5bn annually on property management and running costs - much of this spend
will be outsourced under Best Value.  By forming Caxton Integrated Services we
believe that we will be able to focus our proven skills in this area to best
effect to help achieve our strategic objective of growing Support Services in
Kier from last year's base of £36m to over £150m turnover per annum, in the
medium term.'

Bill Latto said, 'The development of a true service culture and change
management capabilities will be the keys to our successful penetration of the
Best Value and other developing markets.  The partnership contract that we
have designed for our recently awarded Islington contract will also form an
important part of this platform.'