Disposal

Kier Group PLC
11 February 2008

                                                                11 February 2008



              Kier sells its investment in Hairmyres Hospital PFI


Kier Group plc announces the disposal on 8 February 2008 of its 50% Private
Finance Initiative (PFI) investment in Hairmyres Hospital to Innisfree M &G PPP
Fund.

This East Kilbride hospital was one of Kier's first investments in a PFI
project, which achieved financial close in March 1998. The first patients were
admitted to the hospital on 25 March 2001. Innisfree has been Kier's investment
partner throughout the project and as a result of this transaction now holds
100% of the investment.

The consideration for the shares and loan notes making up Kier Project
Investments Limited's 50% interest in Prospect Healthcare (Hairmyres) Group plc
totalled £13.8m, which was received in cash. The transaction will result in the
disclosure of a profit, of around £16m in the second half of Kier's financial
year. This includes profit previously  deferred following a refinancing in
August 2004, and represents a return of around five times our original
investment.

Hairmyres Hospital is a district general hospital with a 24-hour accident and
emergency department. It has 415 inpatient and day care beds. It won the Best
Major Operational PFI Hospital Award in 2004.

Kier Project Investment manages Kier Group's PFI interests the core strength of
which is its ability to bring together the diverse range of skills and resources
within the Group and combine these with a financial package to deliver high
quality buildings and services to meet the needs of the public sector.

Kier Group plc will be announcing its interim results, for the six months to 31
December 2007, on 27 February 2008.



                                 - ENDS -



For further information, please contact:

Deena Mattar
Kier Group plc                                          Tel: [phone]

Matthew Moth
Madano Partnership                                      Tel: [phone]





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