GBP 40 million Contract

Morgan Sindall PLC
03 July 2007

Morgan Sindall plc

Lovell awarded £40 million housing redevelopment in Somerset



Lovell, Morgan Sindall's affordable housing and regeneration business, has been
selected by Somer Community Housing Trust for a three-year, £40 million housing
regeneration scheme at five estates in Bath and Keynsham in north east Somerset.
The project will involve the redevelopment of post-War, precast reinforced
concrete homes (PRC) of which 193 will be demolished by Lovell and another 100
refurbished.  Lovell will also build an extra 200 new homes on the estates for
local residents and a further 120 homes for open market sale.



The scheme will be managed by Lovell which has a strong track record in
redeveloping PRC and other types of properties. The company recently completed a
£35 million housing scheme for Newport Housing Trust replacing 630 prefabricated
corrugated metal and asbestos construction homes with more than 500 new
bungalows in Newport, South Wales.



Paul Smith, Chief Executive of Morgan Sindall plc comments:



'We're delighted to be working with Somer Community Housing Trust on this
important residential redevelopment in Bath and Keynsham.  Lovell has a
successful track record for delivering this type of complex housing regeneration
scheme and today's award recognises this leading expertise.'



                                                                     3 July 2007



Enquiries:
Morgan Sindall plc                                          Tel: [phone]
Paul Smith, Chief Executive
David Mulligan, Finance Director


College Hill                                                Tel: [phone]
Matthew Smallwood



Editor's notes:

•          PRC homes were built in large numbers in the post-war years and Somer
Community Housing Trust owns a number of different types in a variety of
locations. As a result of structural problems either in the concrete used in
their construction, or due to the corrosion of the steel reinforcement within
the concrete, the properties have been technically classed as defective by Somer
Community Housing Trust. While no immediate structural problems are apparent,
the properties have a limited life in their current form.



•          Lovell is Britain's leading provider of affordable housing. It is a
member of Morgan Sindall plc, the construction and urban regeneration group,
which operates through four specialist divisions: fit out, construction,
infrastructure services and affordable housing.


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