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Maclellan Group (MLG)

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Wednesday 28 March, 2001

Maclellan Group

Re Contract

Maclellan Group PLC
28 March 2001

MacLellan Group plc

28 March 2001


MacLellan Group plc, the supplier of integrated facilities management and
engineering services, has begun mobilising 1500 staff as part of its
groundbreaking contract with Mapeley, the STEPS contract. The STEPS contract
comprises the strategic transfer of ownership and management of some 700
Inland Revenue and Customers & Excise buildings into the private sector.

The STEPS contract was recently signed by Mapeley, one of Europe's
fastest-growing providers and managers of serviced workspace, which is in
partnership with a number of companies including MacLellan.

Under its contract with Mapeley, MacLellan assumes responsibility for some 330
facilities serving 40,000 Customs & Excise and Inland Revenue staff across
three regions: the North East, the South East and South West of England and
South Wales. At seven years and £100 million, it is the company's largest and
longest contract to date.

In partnership with Mapeley, MacLellan teams across the country will undertake
the maintenance of all mechanical and electrical equipment, grounds and
gardens maintenance and the upkeep of all security equipment. Cleaning
responsibilities will include all glazing and general office areas, janitorial
cleaning and the supply of consumables. On security, MacLellan will provide or
manage the provision of all manned guarding functions, as well as all alarm
response and key holding services. Other responsibilities include managing
catering services, childcare facilities, utilities and furniture removal and

In all some 1500 MacLellan personnel will be involved with the STEPS contract,
some 90% of whom have transferred to MacLellan employment under the TUPE

'This is an extremely significant contract for MacLellan and fits with the
strategic development of the company', explains John Ellis, Managing Director
of MacLellan Group plc's Integrated Services Division. 'Our approach to the
delivery of integrated services is proving an outstanding success in winning
us new business while achieving high levels of customer satisfaction for
existing clients. This latest contract places us very firmly in the top group
of facilities and integrated services providers in the UK, shows us to be
demonstrably professional and flexible and assures us of virtually nationwide

The STEPS Contract between Mapeley and the two departments represents one of
the largest contracting-out deals in the public sector. The combined Inland
Revenue and Customs & Excise estate comprises buildings throughout the UK,
ranging from specialised properties such as dog kennels run by Customs &
Excise at ports, to Inland Revenue offices and computer centres. The overall
objective is to achieve better value for money and increased accommodation
flexibility to meet future business needs.

MacLellan Group plc's Integrated Services Division has recently secured major
contract wins in the retail, industrial and PFI sectors which have confirmed
it as one of the UK's leading services groups. MacLellan Group plc ordinary
shares are traded on the Alternative Investment Market ('AIM') of the London
Stock Exchange.

Legal adviser to MacLellan was a team from Hammond Suddards Edge in Birmingham
led by Corporate Finance Partner David Hull.

Further details of MacLellan and its services are available on the Word Wide
Web at

General Information:

Visit MacLellan on the World Wide Web at

Press Information:

John Foley

Chief Executive

MacLellan Group plc

Tel: 01905 744400