Oldham preferred bidder

Kier Group PLC
08 November 2005




             Kier named preferred bidder for Oldham PFI schools for

                           £51m construction contract



Kier Group, in partnership with Dexia Public Finance Bank (Academy Services),
has been named preferred bidder to provide two new schools for Oldham Borough
Council under the private finance initiative (PFI).  The project has a net
present value of £100m.



The Kier project team comprises PFI specialist Kier Project Investment and
facilities management subsidiary Kier Managed Services as service provider for
the 25-year term.  Construction of the new schools, to replace the existing
Failsworth and The Radclyffe secondary schools, will be carried out by Kier
Build and Kier North West under a £51m construction contract.



Kier Group chief executive John Dodds commented:  "We are delighted to have been
selected preferred bidder by Oldham Council for this exciting project and look
forward to working closely with them to provide the new schools as part of the
Government's national education initiative."



                                    - ENDS -



For more information, please contact:



John Dodds, Chief Executive
Deena Mattar, Finance Director
Kier Group plc                       Tel: [phone]



Caroline Sturdy
Madano Partnership                   Tel: [phone]


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