Acquisition

Morgan Sindall PLC
11 May 2001



                              MORGAN SINDALL PLC

                     ('Morgan Sindall' or 'the Company')

      Acquisition of Miller Civil Engineering Services Limited ('MCES')

     from Miller Group Limited for a consideration of £20.0 million cash

Morgan Sindall plc, the construction brands Group, today announces the
acquisition of MCES, a leading UK Infrastructure Services Company.

Introduction

The Board of Morgan Sindall plc today announces that the Company has acquired
MCES from Miller Group Limited for a consideration of £20.0 million in cash.
The acquisition of MCES will form a new division of Morgan Sindall and meets
the acquisition criteria adhered to by the Company, particularly that MCES is
a leading operator in all its fields of business, has strong management and is
very well established across a number of sectors.

Information on MCES

MCES has three distinct businesses: Miller Water, Miller Tunnelling and Miller
Civils all of which have an excellent reputation and track record in their
respective areas. MCES has also been a pioneer in the development of
partnering arrangements and strategic alliances, developing excellent key
client relationships. MCES has a number of excellent established joint venture
partnerships, notably with Vinci of France, the largest construction company
in the world. It is solely a United Kingdom operator and has been particularly
successful in winning framework agreements with key utility clients, not
necessarily on price but on quality, deliverability and culture.

MCES employs approximately 650 people and the key management have worked with
each other for more than six years.

Miller Water

Miller Water is a key outsourcing partner to major UK utility companies and
offers a total service from design through construction to operation. It is
focussed on both capital and ongoing maintenance projects. Its clients include
Anglian Water, Thames Water, Southern Water, Seven Trent Water, South West
Water, West of Scotland Water and Yorkshire Water.

Miller Tunnelling

Miller Tunnelling is the premier tunnelling contractor in the UK. It has both
the technical and design expertise in house and is involved in all significant
current infrastructure projects in the UK including the Channel Tunnel Rail
Link and work for BAA at Heathrow.

Miller Civils

Miller Civils operates in the road, rail and air sectors. It is a key
contractor to the Highways Agency, a partnering contractor with London
Underground and a preferred contractor of Railtrack. It has recently secured
several significant contracts, including the £17.0 million A27 Polegate
contract under the Highways Agency's new partnering regime.

MCES Summary Financial Performance

Year 2000 was the first year in which MCES operated as a separate entity
within the Miller Group. Turnover for the full year was £ 135m and PBIT was £
3.755m.

MCES has an order book over the next one to five years of £430 million which
reflects its framework agreements and its close relationships with its
clients.

Net Assets acquired include approximately £6m of cash balances and include a
goodwill element anticipated to be £ 15m.

Prospects

MCES should benefit from the expenditure forecast to be made in its main
markets such as £15.6 billion by water companies over the next five years and
£180 billion on total transport infrastructure over the next 10 years. The
acquisition will be earnings enhancing in its first year.

                                                                   11 May 2001

ENQUIRIES:
Morgan Sindall plc                                           Tel: [phone]
John Morgan, Executive Chairman

College Hill                                                 Tel: [phone]
Matthew Smallwood