UNITE is preferred bidder

Unite Group PLC
25 July 2001




Date: 25th July 2001

Embargoed until 0700 hrs



UNITE NOMINATED PREFERRED BIDDER

BY THE UNIVERSITY OF SHEFFIELD


The University of Sheffield confirms UNITE is first choice in PPP pathfinder
project for student accommodation services for 5,500 beds

UNITE, the UK's leading specialist provider of accommodation services for
students, has today announced that it has been selected Preferred Bidder by
the University of Sheffield for the provision of wide ranging accommodation
services across the University's entire residential estate.


As Preferred Bidder in the Public Private Partnership, UNITE will now work
with the University to develop the ultimate accommodation strategy. Financial
close is anticipated by Christmas 2001.


A pathfinder project for the higher education sector, the proposals will
include extensive rationalisation and improvement of the University's
residential estate and accommodation services together with the transfer of a
substantial number of University staff who work in this area. The services
will involve the provision of catering, cleaning, portering, estates services
and modern IT provision. UNITE will be seeking to enhance social, welfare and
pastoral care within the accommodation and will also assume full
responsibility for the operation of the University's accommodation office.
Through this function, marketing, viewings, booking and allocations will be
undertaken.


UNITE has moved forward to Preferred Bidder status having satisfied the
stringent requirements and criteria set by the University. This includes the
improvement of the residential accommodation, the enhanced efficiency of the
operation and facilities management for the benefit of students and the
sympathetic treatment of the transferring staff.


Upon financial close, there will be a transitional period, during which UNITE
will adopt joint working protocols with the University to manage the estate up
to the end of the 2001/2002 academic year. Thereafter, UNITE will commence the
accommodation and services rationalisation in keeping with the template agreed
with the University and its stakeholders.

Professor Bob Boucher, Vice-Chancellor of the University of Sheffield said:

'We are very pleased to confirm that UNITE has been appointed as the Preferred
Bidder for this crucial project for the University of Sheffield. Our decision
to appoint UNITE as Preferred Bidder for the operation of our extensive
residential portfolio reflects the fact that the UNITE bid offered innovative
student-centred improvements to the accommodation, together with key benefits
to the University in pursuing its core business as international leaders in
teaching and research. We look forward to working with UNITE in developing a
solution which creates a true partnership between the needs and strengths of
the University, students and the private sector.'


Nicholas Porter, Chief Executive of UNITE, comments:

'We are delighted to have been awarded sole Preferred Bidder status by the
University of Sheffield. We look forward to working together to provide
exciting and innovative accommodation services to match the ambitions of the
University. Our number one priority is to work together with all stakeholders
to provide high quality accommodation services that represent good value for
money for students, both now and for the long term.'


                                    -ends-


Press Enquiries to:

Nicholas Porter, Chief Executive       Tel:     [phone]

UNITE



Ruth Arnold, Communications and Marketing Manager

The University of Sheffield Tel:      [phone]

Sara Hooper-Smith

Redleaf Communications Ltd Tel:     [phone]



Notes to Editors:


  * The University of Sheffield has six halls of residence (providing
    accommodation for 2,870 students), and a wide range of self-catering flats
    and houses (together providing accommodation for over 2,180 students).

  * The University-owned properties are mainly based on the western side of
    the city, from Mappin Street and Broad Lane through to Broomhill and
    Ranmoor.

  * The University of Sheffield has been investigating the possibility of
    developing a Public Private Partnership to run its residential properties
    for over two years.

  * The aim is to involve external resources in refurbishing the properties
    for students, as well as bringing financial benefits to the University to
    enhance its core activities of teaching and research.

  * The arrangement proposed is a 30 year lease of the business of managing
    all University-owned halls of residence, purpose-built flats, and houses.

  * Bids were evaluated against a detailed output specification. This
    required the bidders to maintain, and where necessary improve on, current
    quality standards.

  * Other key issues which were evaluated included affordability for
    students; the sympathetic treatment of all staff working in the
    residences; maintaining and developing pastoral care for students;
    improved security measures and the latest IT provision in study bedrooms.

  * Issues raised by the staff and student unions formed a key part of the
    evaluation process.

About UNITE

  * UNITE was founded in 1991 by Nicholas Porter
  * UNITE is the UK's leading specialist provider of accommodation services
    for students and NHS key workers.
  * Further information is available at the Company's website:
    www.unite-group.co.uk
  * www.bunk.com is a comprehensive, on-line accommodation service for
    university students launched by UNITE.
  * UNITE was recently named West of England Business of the Year 2001.