Re Contract

    INTERSERVE JOINT VENTURE WINS £600m                      

                           ARMY TRAINING ESTATE PPP                            

An Interserve joint venture, Landmarc Support Services Ltd, has signed a £
600 million public-private partnership (PPP) contract to provide facilities
management and range operations for the Ministry of Defence's (MoD's) Army
Training Estate (ATE). The news follows the announcement yesterday that an
Interserve consortium is preferred bidder for the MoD's ARMADA Fleet
Accommodation Centre PFI where Interserve companies will be providing services
worth approximately £220m.

The ATE contract is for an initial period of 10 years with the option of
extension for a further five. The joint venture was named preferred bidder for
the contract in December 2002.

The ATE facilitates the training of the armed forces at 130 sites in England,
Scotland and Wales. Interservefm Ltd and DynCorp International LLC have
combined forces in this joint venture, with Interserve bringing in its
expertise as a major provider of facilities management services to the MoD.
DynCorp, meanwhile, has 50 years' of experience in providing range support
services and operations across Europe and in the U.S. Landmarc Support Services
will deliver:

  * Land and property management
   
  * Maintenance and development of training areas
   
  * Range operations support
   
  * Professional support (conservation, energy efficiency, archaeology and
    planning advice)
   
  * Operation of a bookings service
   
  * Administration support
   
  * Provision and maintenance of accommodation with support services (such as
    laundry, dry cleaning, waste management, water services and energy
    management - lighting, gas and electricity)
   
  * Catering
   
Approximately 2,000 people will be employed on the contract. The MoD is
committed to improving efficiency and views this Strategic Partnering Project
as a means of delivering both the highest quality of service support and the
best value for money.

Defence Minister Dr Lewis Moonie commented, "This contract will provide the
Army Training Estate with better support services such as catering,
accommodation, IT systems, range and estate management. Representing best value
for money, it will allow us to continue to provide suitable training for our
armed forces."

Sam Maroli, Managing Director of Interservefm, said, "This is one of the
largest public-private partnerships the MoD has ever undertaken and Interserve
is delighted to be playing a part in it. We have a long and successful history
of working with the MoD and are looking forward to extending our relationship
in this ground breaking partnering contract."



END