11 December 2014

KIER GROUP PLC

KIER SECURES NEW COUNCIL PARTNERSHIP AGREEMENTS

Kier Group plc ("Kier"), the leading property, residential, construction and services group, announces two major partnership arrangements with local authorities, strengthening its profile as a strategic provider of services.

Kier has been recommended as the preferred bidder for a major new £400m ten-year Strategic Property Partnership with Staffordshire County Council and the Police and Crime Commissioner for Staffordshire. The joint venture will commence in April 2015, with a potential five-year extension and an estimated value to Kier of £40m per annum.

The contract will include a full range of property services including development, disposal, acquisition, construction, asset management and facilities management. Kier will work with Staffordshire County Council and the Police and Crime Commissioner to maximise the performance of their estates, leveraging their property assets to deliver new projects whilst optimising the efficiency of existing facilities. Other regional public sector organisations will also be able to commission through the partnership.

In addition, Kier, together with its joint venture partner WSP, has been awarded a £200m four-year extension of an existing highways services contract with Northamptonshire County Council. The extension of the contract, which was due for renewal in 2016, will enhance the partnership between the two organisations, bringing improved efficiency savings for the Council.

Haydn Mursell, Chief Executive of Kier, said: "Following the acquisition of May Gurney, these new contract awards demonstrate the breadth of offering the Group can provide through long-term strategic partnerships. We look forward to working with our partners to deliver more integrated and effective services, whilst also helping them to drive additional cost savings."

-ENDS-

Contacts:

Faeth Birch/Daniela Fleischmann (Finsbury):              +44 (0) 20 7251 3801

Kier press office:                                                                 +44 (0) 1767 355 869 / +44 (0) 7791 719452