Acquisition

Carillion PLC
19 August 2002

Carillion to strengthen its facilities management business with acquisition of
Citex Management Services

Carillion plc, one of the UK's leading Business and Construction Services
companies, is to acquire Citex Management Services.

Carillion has agreed with Citex Professional Services Limited to purchase its
Management Services business for £11.5 million, which will be met in cash from
Carillion's existing resources.

Citex Management Services will continue to trade under the well-established
Citex brand and become an integral part of Carillion Facilities Management
Services. Citex Management Services has a highly successful track record focused
on the provision of facilities management services to blue chip corporate
customers. Its current portfolio of contracts generates turnover of around £25
million per annum.

Completion of the transaction is expected within the next few weeks.

Carillion's strategy is to deliver sustainable earnings growth through the
development of its Business Services and PPP Investment activities, whilst
maintaining a strong and selective construction capability that supports the
growth of PPPs and Business Services. Carillion is accelerating the substantial
organic growth it has achieved in these areas of its business over the last five
years through selective acquisitions. The successful acquisition of the
remaining 51 per cent of GT Railway Maintenance in September 2001 significantly
strengthened and expanded Carillion Rail.

Carillion's Business Services activities, which generated some £609 million of
turnover in 2001, include a strong portfolio of facilities management contracts,
mainly with public sector customers. Carillion is also the lead partner in
Monteray, which provides facilities management to around 8000 BT properties in
the UK, and has recently signed two ten-year joint venture agreements to provide
facilities management worth up to £500 million in the Middle East and Caribbean,
where it has well established regional businesses.

The acquisition of the Citex Management Services business is another significant
step in developing Carillion's Facilities Management Services business. Citex,
which was established in 1998, is a private company and its Management Services
business employs around 200 people.

The majority of the Citex Management Services staff will transfer to Carillion
including Citex Chief Executive, Oliver Jones, who has lead the company through
a successful period that has seen the Citex brand established as a leader in its
chosen markets. Citex Management Services' entrepreneurial management team and
strong track record of securing contracts with blue chip corporate customers
will therefore complement Carillion's existing strengths and create further
opportunities for growth.

Commenting on the acquisition, Carillion Chief Executive, John McDonough said:
'The development of our Business Services activities, which alone generate more
than half the Group's profit, continues to be a key part of our strategy for
growth and high quality margins. This acquisition, which includes the transfer
of key Citex staff, complements Carillion's strong portfolio of public sector
contracts. It is therefore is a significant step in strengthening our well
established facilities management business and will enhance opportunities for
sustainable growth both in the UK and internationally.'

For further information contact:

John Denning, Director Group Corporate Affairs, Carillion plc 01902 316426




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