Friday, December 12, 2003

John Laing plc (“Laing”), the infrastructure investment group, today announces its participation in consortia that have been appointed preferred bidder for two major new PFI healthcare projects with a joint capital value of £1.35 billion.

Laing, together with its partner Sodexho, has been appointed preferred bidder to build a new acute hospital on the University Hospital of North Staffordshire’s City General site and a new community hospital for North Stoke Primary Care Trust on the Haywood and Stanfield sites.

The project, which has a capital value of £350 million, is expected to reach financial close on 30th September 2004. Laing has a 75% equity investment in the project. The contract will run for 30 years from completion of the construction, which is being undertaken by Laing O’Rourke.

In addition, Laing has been invited to join a consortium involving Skanska BOT, Innisfree, and Bank of Scotland. This consortium has been awarded preferred bidder status for the UK’s largest PFI hospital development project to date. The project is for the refurbishment and redevelopment of St Bartholomew’s Hospital in the City of London and the Royal London Hospital in Whitechapel.

The £1 billion project will run for 38 years including an 8 year construction phase, with financial close expected in January 2005. Laing has a 25% equity stake in the project.

Andy Friend, Chief Executive of Laing, commented: “We are delighted to have won the preferred bidder position at North Staffordshire and to have joined the consortium for the development of St Bartholemew’s and the Royal London. This success comes at the end of a year where we have made very significant progress in the healthcare sector. It follows our appointment for six new NHS LIFT projects and the £250 million Newcastle Hospital PFI.”

Following today’s announcements, Laing now has 18 preferred bidder positions and is currently invested in 32 PPP/ PFI projects in the rail, roads and accommodation sectors, 22 of which are fully operational.

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