Re Contract

Carillion PLC
03 April 2003



3 April 2003


Carillion secures highway maintenance contract for Surrey County Council worth
up to £160 million


Business and Construction Services company Carillion will start work this month
on a £16 million p.a. highway maintenance contract for Surrey County Council.


Carillion will provide all routine and cyclical maintenance in East Surrey
covering the Districts of Elmbridge, Epsom and Ewell, Reigate and Banstead, and
Mole Valley and Tandridge. Carillion will also be responsible for individual
improvement schemes up to a value of £500,000.

The contract takes account of the latest national procurement thinking and the
way in which contracts of this type are managed, monitored and reimbursed.
Carillion will provide a seamless service replacing the more traditional
approach of employing multiple contractors.

As well as carrying out the work, Carillion will be responsible for managing the
network and designing the work for the new maintenance schemes - which is a
relatively new feature demonstrating Surrey County Council's and Carillion's
forward thinking approach to integrated service delivery.

John McDonough, chief executive of Carillion said: 'We are delighted to be
working alongside Surrey County Council on this prestigious contract and look
forward to providing the residents of Surrey with a cost effective and public
focussed service.

'Transport is one of our key growth sectors and this contract follows other
recent successes, including two major contracts for the Highways Agency - the
Area 12 Managing Agent Contractor (MAC) maintenance contract, with a total worth
of up to £230 million and a £65 million contract to upgrade the nine kilometre
stretch of the A74 to motorway.'


The Surrey contract will be for an initial period of four years but could be
extended to ten years, subject to meeting key performance targets.

For further information contact

John Denning, Director Group Corporate Affairs               01902 316426

Paula Manning, Acting Corporate Communications Manager       01902 316444


                      This information is provided by RNS
            The company news service from the London Stock Exchange