Re Contract

    Interserve Wins £34m A38 & A30 Early Contractor Involvement Project

Interserve Project Services has been appointed by the Highways Agency for the
design and construction of the A38 Dobwalls Bypass and the A30 Merrymeet
Junction improvement. This Early Contractor Involvement (ECI) project has a
value of £34m in two contracts.

The two schemes will be developed separately. Dobwalls Bypass, where
construction is expected to commence in 2007, is a dual carriageway improvement
on the A38 part-way between Plymouth and Bodmin in Cornwall. The Merrymeet
Junction improvement is the grade separation of a roundabout just east of
Okehampton in Devon, allowing traffic on the A30 dual carriageway to pass
straight through. Construction here is due to begin in 2005.

This is the third major scheme won by Interserve Project Services'
infrastructure division in the Highways Agency's Targeted Programme of
Improvements, closely following the awards of the A5 Weeford-Fazeley project
and the A1 junction improvements between Peterborough and Blyth. As with these
other contracts, Interserve's selection of a specialist design partner was an
important element in winning the project and the partner will play a key role
as the plans are further developed.

"Part of our infrastructure division's strategy is to work with the Highways
Agency as a preferred client on major partnering projects," said Interserve Plc
director John Vyse. "There's a good deal of mutual respect in the relationship
and we're looking forward to extending this as the projects move through their
design phases and into construction."



END