Interserve Regulatory News (IRV)

News Release

INTERSERVE WINS c.£80 MILLION INTEGRATED FM CONTRACT WITH MAGNOX

Interserve, the international support services and construction group, has been awarded a three-year, integrated facilities management contract with Magnox Ltd, the company responsible for operating ten of the UK's nuclear power stations. The contract is valued in excess of £80 million and includes an option to extend for a further three years.

This is the first time that Magnox has chosen to outsource all of its facilities management requirements across the estate to a single supplier under one contract agreement - a move which will not only reduce costs but also ensures the highest standards of safety and quality control.

Interserve will self-deliver a full range of services including mechanical and engineering maintenance, catering, cleaning, office services, grounds maintenance and civil works.

The contract, which starts the first phase in April 2013, includes ten sites throughout the UK, and covers 450 acres and supports over 4,000 Magnox employees and contractors.

The Magnox sites are at various stages of their lifecycles, from Wylfa on Anglesey which is still generating electricity to Bradwell in Essex and Trawsfynydd in Gwynedd which are at an advanced stage in the decommissioning process. Magnox operates these sites on behalf of their owner, the UK's Nuclear Decommissioning Authority.

It was of prime importance for Magnox to select a provider that could not only deliver value for the UK taxpayer, but also has a strong track record of working effectively in a highly regulated industry with a proven safety culture.

Guy Bruce, managing director - industrial at Interserve, said: "We have over 65 years' experience delivering large-scale, safety critical projects on a variety of nuclear sites across the country. The wide range of services we deliver means we fully understand the nuclear industry's required specifications and standards and through continued innovation and intelligent thinking we aim to exceed and improve on them every day.

"This is a really exciting opportunity for Interserve because not only does it significantly expand our capabilities in the sector, it gives us a footprint on many of the UK's nuclear sites."

Peter May, head of commercial delivery at Magnox, said: "A single facilities management contract provides us with greater flexibility and a consistent approach to the delivery of services, as we strive for innovation and greater efficiency in all areas of our business."

Interserve is also the sole contractor in a four-year framework agreement with Magnox to design and construct facilities to store intermediate-level waste. Further afield, sister company RMD Kwikform recently engineered a solution to safely replace a 195 tonne gantry bridge at the highly-sensitive Goesgen Nuclear Power Plant in Switzerland - reinforcing Interserve's capability and experience in the nuclear sector.

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For further information please contact:

Nigel Charlesworth 0118 960 2332

Head of Corporate Communications, Interserve

Hannah Simpkins 020 7902 2000

Head of Marketing - Support Services, Interserve

Richard Campbell/Ian Brown 020 7307 5334

Capital MSL

About Interserve

Interserve's vision is to redefine the future for people and places. We are one of the world's foremost support services and construction companies, operating in the public and private sectors in the UK and internationally. We offer advice, design, construction, equipment, facilities management and frontline public services. Interserve is based in the UK and is listed in the FTSE 250 index. We have gross revenue of £2.3 billion and a workforce of over 50,000 people worldwide.

Website: www.interserve.com.

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