Contracts

Mears Group PLC
6 June 2000


The  current  year  has started positively  with  profits
ahead of management expectations.  The integration of the
Haydon business has gone well.

I  am  pleased to confirm that a number of contracts with
existing  clients have both increased in value  and  have
received extended contract terms.

The  Group  were  awarded a contract in  June  1997  with
Basildon District Council (Basildon) with a value of £1.2
million  for 3 years.  Basildon have subsequently awarded
the Group a contract at double the existing value at £2.5
million  per annum for a three year period with a further
two year extension possible.

Serco Group PLC have awarded the Group two contracts  for
the provision of maintenance services to the Ministry  of
Defence  housing establishments in Oxford  and  Hampshire
worth in total £3 million per annum for three years.

Wycombe District Council has awarded the Group a contract
with a value of  £1.2 million for a three year period.

The  Group's subsidiary Haydon & Co have been  awarded  a
mechanical   and   electrical  services   contract   with
Carillion PLC for £3.2 million and a mechanical  contract
for Barratt Homes worth £3.5 million.

The  Group  enjoys a forward order book worth  in  excess
£110 million.