Contract

RNS Number:6976P
Tribal Group PLC
12 September 2003

                                Tribal Group plc



                        PRESS RELEASE 12 September 2003



Tribal identified by the NHS as the likely preferred bidder on a #300m NHS
treatment centre contract



Mercury Health, a wholly owned subsidiary of Tribal Group, the provider of
professional support services to the UK public sector, today announces that it
has been identified by the NHS as the likely preferred bidder on a five year
contract under the NHS Treatment Centre (TC) initiative. TCs are at the heart of
the government's plans to increase capacity in the NHS and reduce waiting times.



Contract negotiations are expected to be successfully concluded in late 2003.
The contract will involve setting up and operating a national network of eleven
predominantly day surgery and treatment centres in support of the NHS. The
centres are scheduled to open in Spring 2005.   The contract will guarantee a
minimum caseload over the five year period and is expected to generate revenue
of in excess of #300 million.



Mercury Health has been established as Tribal Group's healthcare delivery arm
under a dedicated, highly experienced senior management team led by Mark
Aichroth, Chief Executive, who has held senior management positions at HCA
Healthcare, Humana and Blue Cross Blue Shield.



Mercury Health will draw on Tribal Group's extensive experience in planning and
designing healthcare facilities in the UK and has entered into a strategic
partnership with Ascent Health, a leading US Diagnostic and Treatment Centre
(DTC) services provider.  Ascent Health has commissioned over 150 DTCs and
currently manages some 30 centres undertaking over 100,000 surgical procedures
annually. Mercury Health has also established relationships with a number of
leading UK surgeons, anaesthetists and radiologists who will provide specialist
clinical input alongside Ascent Health.



The detailed commercial and financial structure remains subject to final
contract negotiations. It is intended that the funding requirements of Mercury
Health will be satisfied by a combination of direct equity investment by Tribal
Group (which will be funded from the group's existing cash resources and bank
facilities) and non-recourse senior debt.



Henry Pitman, Chief Executive of Tribal Group, commented:



"We are delighted to have been identified by the NHS as likely preferred bidder
on one of the largest TC contracts in competition against leading healthcare
providers from the UK and overseas.  This is a major success for the group and
represents an outstanding opportunity to develop a substantial healthcare
delivery business, alongside our strong consultancy and support services
offering."



"We have brought together an excellent team, combining the very best of UK
public and private sector and international expertise.  We are particularly
pleased to be working with our US partner, Ascent Health, who has over twenty
years experience of designing, commissioning and operating DTCs."



"TCs represent a unique opportunity to work with the NHS in increasing health
care capacity in the UK, reducing waiting times and above all improving
facilities for patients."



"Once we reach financial close, further commercial and financial details will be
made available."


For further information contact:

Henry Pitman, Chief Executive, Tribal Group plc Tel: [phone]

Simon Lawton, Group Finance Director, Tribal Group plc Tel: [phone]



Editors' note:

Tribal Group plc, a main market listed company, provides a range of consultancy
and support services to the UK public sector.  The group's core markets are in
education; local government, housing and regeneration; health and social care;
and central government.  The group employs 1,500 staff in 50 locations in the
UK, including over 400 staff in healthcare.

Links:   Tribal Group plc website: www.tribalgroup.co.uk

         Health Inventures, LLC (US trading name for Ascent Health) website:
         www.healthinventures.com/

         DoH Treatment Centre website: www.diagnosticandtreatmentcentres.com/
         home.asp





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