New NHS Contract signed

Tribal Group PLC
21 December 2006


21 December 2006


Tribal Group plc ('Tribal')


Announcement of financial close on NHS West Midlands diagnostic contract


Following the announcement in July 2006 of its selection as preferred bidder,
Tribal is pleased to announce that its healthcare delivery business, Mercury
Health, has today reached financial close on a five year contract to deliver a
range of diagnostic services to NHS patients in the West Midlands. The contract
is one of seven regional contracts to be awarded as part of the Phase 2
Independent Sector Treatment Centre programme.

Under the contract, Mercury Health will deliver a range of diagnostic services
covering imaging (principally MRI, ultrasound and CT), endoscopy and audiology.
These services will be provided using mobile diagnostic centres that will
operate from approximately fifty sites across the West Midlands. The sites
include the car park areas of sports grounds, football clubs and supermarkets
and Mercury Health will therefore be able to offer the 5.5 million residents of
the West Midlands an easily accessible and local service.

Services are due to start from April 2007 and Mercury Health expects to be fully
operational by the end of May 2007. Mercury Health will be providing up to
190,000 procedures annually. Key supply partners include GE, Siemens, BT and
Euromedic, a leading European diagnostic company that will be providing
reporting services to support Mercury Health's imaging activities.

The funding requirements to implement and operate the contract total £26.4
million. £16.0 million is required for medical equipment and mobile trailers and
will be satisfied through lease arrangements with GE Finance and Bank of
Scotland Corporate Asset Finance. The balance of £10.4 million is required for
implementation and working capital purposes and will be satisfied by Tribal from
its cash resources and existing bank facilities. In addition, Tribal and Mercury
Health have provided certain guarantee and security arrangements in connection
with the contract.

Henry Pitman, Tribal's Chief Executive, commented: 'We are delighted to have
reached financial close on this contract. It is an important step in the further
development of Mercury Health as a leading independent sector provider of
clinical services to the NHS. We look forward to providing high quality, fast
and convenient access to diagnostic procedures for NHS patients in the West
Midlands'.


Ends


For further information, please contact:

Henry Pitman, Chief Executive - 01285 886020
Simon Lawton, Group Finance Director - 01285 886020
Peter Martin, Chief Executive, Mercury Health - 0118 952 1900



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