Friday, October 15, 2004

John Laing plc ('Laing') announces today that it has sold, via a transfer of its interest in the M40 Limited Partnership, 50% of the capital of UK Highways M40 (Holdings) Limited ('M40') to the Secondary Market Investment Fund ('SMIF') for £26.25 million in cash. Following the transaction Laing will hold a 50% stake in the M40 project and will retain asset management control.

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.

The net assets of the 50% disposed amount to £19.7m. Laing acquired this asset on 28 June 2004 and has since held it as a current asset for resale. Accordingly Laing has not realised any operating profit attributable to this asset in 2004. Laing will record a profit on disposal of £6.4 million in the current financial year.

The proceeds will be made available for further investment in Laing's infrastructure businesses.

Andy Friend, Chief Executive of John Laing plc, commented.

'Today's sale is further evidence that there is a growing appetite in the secondary market to acquire assets of this quality and we are delighted to be welcoming SMIF as our partner in this highly successful project.'

For further information please contact:

John Laing plc
Andy Friend, Chief Executive
Adrian Ewer, Finance Director

Finsbury Group
Edward Orlebar / Faeth Birch                          020 7251 3801

Notes to Editors

* Laing's portfolio of investments currently includes national and   international roads, rail and accommodation projects. Road projects include   the Severn River Crossings, the E39 road in Norway, the M6, Sirhowy Way in Wales, as well as the UK M40 DBFO road. 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, hospitals including the Queen Elizabeth in Greenwich and the Newcastle and Norwich hospital in Norfolk. It also invests in a number of NHS LIFT healthcare   projects and schools projects throughout the UK.

* The Secondary Market Infrastructure Fund UK LP (SMIF) is a medium to long term active investor in all infrastructure sectors throughout Western Europe with over 40 assets under management worth over GBP 200 million.

* For further information and media resolution images, visit John Laing plc's website http://www.laing.com/

                      This information is provided by RNS
            The company news service from the London Stock Exchange