Re Contract

    Interserve Announces £100m Dubai Retail & Leisure Development

Interserve's Middle East project services business has been awarded the
contract to build the retail and leisure component of the Mall of the Emirates
development in Dubai, United Arab Emirates - the largest such complex in the
Arab world. The value of this Main Mall contract to associate company Khansaheb
Civil Engineering LLC, in which Interserve owns a 45 per cent share, is 620
million dirhams (£100 million).

Initial work began in October 2003 with project completion scheduled for
September 2005. The contract will involve the use of 140,000 cubic metres of
concrete - more than half as much again as will go into the construction of the
new Wembley Stadium - and 14,000 tonnes of reinforcement. There will be 60,000
square metres of retail stores including a 20,000-square-metre hypermarket -
considerably larger than Marks and Spencer's flagship store at Marble Arch.
Other components of the development currently being tendered include a
400-suite hotel, parking garages for 6,500 cars and a snow centre which, at 400
metres long with a 70-metre fall, will be larger than any similar project in
the USA or Europe.

The client, Majid Al Futtaim Investments LLC (MAF) is one of the leading mall
developers and operators in the region. Khansaheb has carried out a number of
projects with MAF including a fast-track scheme to fit out the second floor of
the Deira City Centre complex (completed within 26 weeks) and new access roads
to the complex completed within 18 weeks.

Interserve Plc director John Vyse commented, "We've developed a strong
relationship with MAF and share a commitment to providing value for money. Our
proven reputation for carrying out major projects on time and within budget and
the fact that we could field the same construction team that delivered the
highly successful Dubai Convention Centre project for the 2003 IMF Conference
were significant factors in winning this prestigious contract."



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