Monday, June 28, 2004

John Laing plc is acquiring the remaining 50% of the capital of UK Highways M40 (Holdings) Limited (“UK Highways M40”), from Carillion plc for £19.65 million.

The cash consideration for this purchase is £19.65 million, payable immediately of which £500,000 will be held in escrow pending satisfaction of certain conditions.  The consideration may be adjusted by £750,000 (upwards or downwards) at a future date dependent on the achievement or otherwise of certain assumptions underpinning the consideration.

UK Highways M40 holds a DBFO contract with the UK Highways Agency to design, build, finance, operate and maintain a 123km section of the M40 motorway between junction 1a and junction 15.  Construction was completed in January 1999 and the concession to operate and maintain the motorway expires in January 2027.  This acquisition will bring the entire project within John Laing’s investment portfolio.

The consideration payable of £19.65 million for Carillion’s stake is consistent with the John Laing portfolio valuation of its existing 50% holding in UK Highways M40, which was carried out as at 31^st December 2003.  John Laing’s profit before tax, on it’s 50% holding, including interest income for the year to 31^st December 2003 was £1.5 million.

Andy Friend, CEO of John Laing plc commented.

“This is an attractive investment opportunity in relation to a high quality, cash generative infrastructure asset which we know very well.”

For further information please contact:

John Laing plc                                                                                     

Andy Friend, Chief Executive

Adrian Ewer, Finance Director                                                        020 7901 3200

Finsbury Group                                                                                     

Edward Orlebar / Faeth Birch / Robin Walker                                   020 7251 3801

Notes to Editors

John Laing is the UK’s listed market leader in PPP/ PFI infrastructure projects.  It is currently invested in 37 PPP/ PFI projects in the rail, roads and accommodation sectors, 21 of which are fully operational. Preferred or sole bidder status has been reached on 15 further projects of which up to 6 are expected to reach financial close in the second half of the financial year.

Laing’s portfolio currently includes road projects such as the Severn River Crossings, the UK M40 DBFO road, the E39 road in Norway and the A55 in Wales. Laing also owns Chiltern Rail, one of the UK’s most successful train operating companies. Accommodation investments include the MOD main building, two police firearms training centres, four hospitals, two LIFT healthcare projects and six schools projects.