Re Contract

Kier Group PLC
09 February 2007



                 £230M+ OURSOURCING CONTRACTS FOR KIER GROUP                   

  

Kier Group plc, the construction and services company, announces that it has
been awarded a £170m public private partnership contract with Harlow District
Council to outsource the town's council housing, streets and grounds
maintenance under the government's Best Value programme.

Over 370 council employees will transfer to the payroll of Kier Harlow Limited,
a joint venture company set up by Kier and Harlow District Council to deliver
the services, in which the Council has a 19.9% interest.

The scope of the seven-year contract, which carries an option to extend to ten
years, includes day-to-day repairs to 10,000 properties, environmental services
including street cleaning, landscaping and grounds maintenance. Kier Harlow has
taken occupation of the Council's site at Mead Park and work is already
under way.

The Group is also about to start work on a four-year outsourcing contract for
Sefton-based One Vision Housing valued at £62m which involves upgrading 5,600
council properties to the government's Decent Homes standard.

Kier Group chief executive John Dodds said: "These latest contracts follow
our highly successful partnerships at Islington, Sheffield, Leeds and Bexley
where dramatic improvements have been achieved, recognised by a series of
national awards. We are proud of our ongoing performance but remain focused on
continuous improvement. Kier will be looking to achieve equal success for
Harlow and Sefton to demonstrate how well we embrace the ethos of working
closely within the communities we serve."

 

Ends

09.02.07

 

Contact:John Dodds/Deena Mattar
Tel: [phone]



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