Morgan Sindall Group Regulatory News (MGNS)

12 October 2012

Morgan Sindall Group appointed preferred

delivery partner for £1.1 bn Sellafield contract

Morgan Sindall Group plc announces today that Sellafield Ltd has selected a joint venture between Morgan Sindall Group and Arup Group Limited, as its preferred delivery partner for a potential £1.1bn contract to provide a range of essential services at the Sellafield nuclear site.

Through this Infrastructure Strategic Alliance ('ISA'), Morgan Sindall and Arup will help to improve and develop key infrastructure assets on the Sellafield site. The ISA includes the maintenance of steam and electricity generation, water supply, chemical storage and distribution, drainage networks and all transport infrastructure at the site. The contract is expected to be signed later in the year, for an initial five year period, with an option to extend the contract for a further 10 years.

Morgan Sindall Group has a strong track record in delivering complex, highly-specialised infrastructure projects for its partners, and is well positioned to capitalise on further opportunities in the growing sectors of energy, rail, aviation and highways.

Morgan Sindall Group and Arup have a long and proven history of effective partnership, which will be critical to delivering the ISA, and they expect to work collaboratively with Sellafield to deliver greater quality more efficiently, while ensuring industry leading safety performance.

Paul Smith, Chief Executive of Morgan Sindall Group, commented: "This appointment is fantastic news for the Group and Sellafield as a whole. The award builds on our strong track record of delivering on the most complex and challenging infrastructure projects for our clients. The renewal of Sellafield's infrastructure is an important commitment to Cumbria, and underlines the Group's continuing focus on UK regeneration."

Nuclear Management Partners' Deputy Managing Director for Sellafield Ltd, George Beveridge, commented: "We have set ourselves a number of challenging targets through our performance plan. Long term, collaborative alliances with supply chain partners represent best industry practice and it's important that we seize that opportunity to unlock expertise and innovation and safely deliver our work programme quicker and more cost effectively. We're confident that in Morgan Sindall and Arup, we have found partners with a proven track record that will help us ensure that our infrastructure assets receive the best possible care."

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Notes to editors:

1. Morgan Sindall Group plc is a leading UK construction and regeneration group with revenue of over £2 billion and which operates through five divisions of construction and infrastructure, affordable housing, fit out, urban regeneration and investments.

2. Arup is the creative force at the heart of many of the world's most prominent projects in the built environment and across industry. From more than 90 offices worldwide well over 10,000 Arup planners, designers, engineers and consultants deliver innovative projects across the world.

3. Sellafield Ltd is the company responsible for safely delivering decommissioning, reprocessing, nuclear waste management and fuel manufacturing activities on behalf of the Nuclear Decommissioning Authority.

ENQUIRIES:

Morgan Sindall Group plc Tel: 020 7307 9200

Paul Smith, Chief Executive

David Mulligan, Finance Director

Brunswick Tel: 0207 404 5959

Nick Cosgrove

Alison Kay