Re Contract

Kier Group PLC
11 April 2007


Kier signs £86m Decent Homes contract for Hull

Kier has signed an £86m contract with Hull City Council to deliver repairs and
maintenance for 10,000 Council properties in the Park and Riverside areas of
Hull under the government's Decent Homes programme.  The contract will run
for an initial five years with the possibility of up to two, five-year
extensions.

As part of the contract, 125 Council employees will transfer to Kier to carry
out response repairs, empty property repairs, adaptation work and planned
maintenance.  Work will begin immediately.

Kier is currently working on over 195,000 homes across the country and in the
northern region has contracts and partnerships in Sheffield, Leeds, Lincoln and
Hull.

Kier Group chief executive John Dodds commented: "The Kier team will be
focused on showing how successfully we can deliver excellent repairs and
maintenance and Decent Homes standards for the City and its tenants. We 
are looking forward to fully embracing the true spirit of partnering with Hull
City Council and are keen to demonstrate how, as a partner of choice, we can add
value for the community and over time, contribute to the wider regeneration of
Hull."

Ends

11.4.07


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