Interserve Consortium wins �250m Defence Sixth Form College PFI

Contract Signed in Record Time for an MoD Accommodation Project

Interserve and its consortium partner TQ Education and Training Ltd have been
awarded the �250 million Defence Sixth Form College private finance initiative
(PFI) contract by the Ministry of Defence (MoD). The consortium was named
preferred bidder at the end of January and it has taken just three months to
reach financial closure, the fastest ever achieved for an MoD accommodation
project.

Interserve Project Services will design and build the college, which is
scheduled to open in September 2005. Interservefm and TQ Education and Training
will then provide a full range of facilities management and educational
services over a 28-year period. The value to Interserve of the project and
facilities services is approximately �90 million.

The Defence Sixth Form College, located near Loughborough, Leicestershire, will
have a capacity of about 340 MoD selected students. It will be a principal
source of Technical Officer recruitment to all the UK armed forces and the MoD
civil service, delivering around 165 young men and women educated to A level
standard each year.

"We share the MoD's goal of creating a centre of excellence," remarked Adrian
Ringrose, Interserve's Deputy Chief Executive. "The contract really plays to
our strengths, as we can ensure that the design goes hand-in-hand with
operation and we'll be working with an excellent partner to deliver the
educational services, including IT and other `back-office' functions."

The consortium, Minerva Education & Training Ltd, comprises Interserve
Investments Plc, TQ Education and Training Ltd and HSBC Infrastructure Fund
Management Ltd. Interserve Investments will manage Interserve's equity stake in
the project.



END