£80m PPP Deal Secured

Galliford PLC
17 February 2000


TO: COMPANY ANNOUNCEMENTS OFFICE

GALLIFORD SECURES £80m PPP DEAL

We are delighted to announce that a contract has been signed between
Birmingham City Council and Birmingham Schools Partnership (BSP) to form a
30-year partnership to carry out school rebuilding works and then the
operation of property-related services at ten City schools.

BSP is a company formed for the project in which Innisfree and Galliford are
equity partners.  Galliford will invest £840,000 for its 20% equity Innisfree
owns the remaining 80% equity.

The value of the contract at today's prices is approximately £80m.  Galliford
will carry out the building works valued at £37m and construction will
commence in July 2000 and continue until May 2002.  Galliford's Facilities
Management Division will be responsible for the operation of the
premises-related services over the 30-year term of the project.

The project, which is the first multiple schools building project in England
secured through the public/private partnership route, will be financed by the
project finance team of Lloyds TSB Bank plc.

Enquiries:
George Marsh, Managing Director
John Livingston, Finance Director
Galliford plc
Tel: [phone]
www.galliford.co.uk

FROM:  GALLISFORTD PLC