Re Contract

Carillion PLC
03 April 2008


3 April 2008

   Carillion joint venture selected as preferred bidder on Tameside Building
           Schools for the Future PPP contract valued at £300 million

Carillion and its joint venture partners, The Local Education Partnership (LEP),
have been appointed as the preferred bidder for the £300 million Tameside
Building Schools for the Future (BSF) programme.

The LEP will initially deliver twelve secondary and special schools, valued at
£220 million in the current wave of the BSF programme. Construction work will
begin in mid 2008 and will be completed by the end of 2010.

Carillion will carry out the construction work, valued at £165 million, and will
also provide facilities management services for three of the new schools over
the 25-year concession contracts, worth approximately £55 million. Carillion
shall be investing approximately £3.25m of equity in the project.

The LEP will also deliver further new schools for Tameside Metropolitan Borough
Council in subsequent waves of the BSF programme, to a total value of £300
million, and may deliver other community and regeneration projects, subject to
receiving the necessary approvals.

Commenting, Carillion chief executive, John McDonough, said: 'We are delighted
to have been selected as preferred bidder on our third major project under the
BSF programme, which is a strong growth area for Carillion. I am particularly
pleased that our proposals for this programme align closely with Tameside
Metropolitan Borough Council's vision to provide transformational learning that
raises the aspirations and expectations of the people of Tameside.'

Councillor Roy Oldham, Executive Leader of Tameside Metropolitan Borough Council
said: 'This project represents the best opportunity to invest in our schools in
generations. Not only will it transform buildings, it will also enable us to
improve the educational attainment for young people, providing them with more
opportunities to access education, training and employment.'

- Ends -

Notes to editors

The Local Education Partnership comprises Tameside Metropolitan Borough Council,
Partnerships for Schools and Carillion. Tameside Metropolitan Borough Council
and Partnerships for Schools will each provide 10% of the equity, with the
remainder being provided by Carillion.

The Tameside Building Schools for the Future programme forms part of the
Government's £5bn spend per annum on the refurbishment / renewal of schools.

Tameside is located to the East of Manchester with its administrative centre in
Ashton under Lyne. Tameside has been recognised as an 'excellent council' and
'best achieving council of the year' in recent awards.

Carillion plc is one of the UK's leading support services, Public Private
Partnership project and construction companies. The Group has annual revenue of
over £5bn, employs around 50,000 people and operates across the UK, in the
Middle East, Canada and the Caribbean.

In the UK, Carillion's principal market sectors are Defence, Education, Health,
Building, Facilities Management and Services, Roads, Utilities Services, Rail
and Civil Engineering.

The Group is a leader in Public Private Partnership projects, particularly in
the Defence, Education and Health sectors in the UK and in the Health sector in
Canada.

In the Middle East, the Group's principal market sectors are Construction and
Facilities Management. In Canada and the Caribbean, the Group's main sectors are
Health, Roads Maintenance and Construction.

Carillion's education portfolio includes Leeds, Renfrewshire and South Ayrshire
schools and BSF projects for Nottingham City Council and South Tyneside and
Gateshead Councils.

This and other news releases relating to the Group can be found at
www.carillionplc.com.

For further information on Carillion:
John Denning, Director Group Corporate Affairs, Carillion plc 01902 316426


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