Agreement by Subsidiary Completed with Stagecoach

Galliford PLC
17 March 2000


Galliford is pleased to announce that Rapid Transport International plc (RTI),
in which Galliford has a 50% interest, has concluded an agreement with
Stagecoach Holdings plc under which they have acquired a 50% interest in
Northampton Rapid Transit System Limited (NRTS).

NRTS is a segregated bus system serving new areas of development around
Northampton with the City Centre using rapid transit vehicles.

Stagecoach and RTI have also formed a joint company, RTI Stagecoach Limited,
for the promotion of Rapid Transit projects in other locations.  Feasibility
work is underway in a number of other towns, with proposals for Cambridge
being the most advanced.

Galliford will be responsible for all the RTI construction contracts.

George Marsh, Chief Executive, Galliford plc said:
'Our philosophy of partnering has proved to be beneficial as this agreement
illustrates and we look forward to further RTI roll-outs in the medium term.'

Commenting on the deal, Mike Roper, Chairman of RTI said:
'We are delighted to be working with a company of Stagecoach's stature,
delivering a vision which both companies share.'

Brian Cox, Executive Director of Stagecoach Holdings plc said:
'Northampton rapid transit is an exciting answer to the area's transport
problems.  Stagecoach can draw on extensive experience in bus and rail, as
well as our operational experience with Sheffield Supertram, in delivering a
state-of-the-art transit system that Northampton can be proud of.'


Enquiries:
George Marsh           Ian Hunter
Chief Executive        Executive Director
John Livingston        Citigate Dewe Rogerson
Finance Director       Tel: [phone]
Galliford plc
Tel: [phone]
www.galliford.co.uk