Re Contract

    Interserve to create new £45m offices in Inland Revenue PFI

Interserve Project Services has negotiated a £45 million contract to design and
build new offices for the Inland Revenue and the Department for Work and
Pensions as part of the Private Finance Initiative (PFI) redevelopment of the
Newcastle-upon-Tyne estate. The company is undertaking the work at Longbenton
on behalf of the Newcastle Estate Partnership, a joint venture between AMEC
Developments and Interservefm.

The project represents the final development phase of the 26-hectare site
situated to the north of the city centre. Interservefm already supplies
facilities management services in the PFI scheme over a 25-year period on the
existing estate, and will do the same for the new buildings once they are
operational.

The new facilities, which will provide 23,290 sq m of office space and a
721 sq m restaurant, consist of four three-storey office buildings in two
linked pairs and a stand-alone restaurant. The design draws on the previous
phases of works on the site in which six office complexes were constructed.
Steelwork erection is now in progress and the project is scheduled for
completion in October 2004.

"We won this work following a recent project for the same client nearby," said
John Vyse, Executive Director of Interserve Plc, "and it's testimony to the
quality and value we provided there that we've been asked to undertake this new
development. The offices will accommodate some 2,700 people in a modern
environment."



END