Sale of Tube Lines, completion of construction and extension of financing arrangements

Tube Lines

The board of Jarvis plc is pleased to announce that the company has today completed all aspects of the sale of its interests in Tube Lines to Amey. The agreement to sell was announced on 24 December 2004. The total gross consideration was £146.8 million, which includes the receipt from Amey of £95.5 million and the release of existing cash collateral of some £51 million (mostly relating to Amey's assumption of Jarvis' £45m equity bridge loan) together with the release of a contingent liability of £11.7 million to subscribe for further loan stock in Tube Lines (Holdings) Limited.

Construction projects

Jarvis has also signed binding refinancing agreements for all 14 of its largest unfinished construction projects. The Group announced on 24 December that discussions on refinancing these projects were at an advanced stage and non-binding documentation had been signed or was close to being signed. Discussions continued into January with the key stakeholders in each project, including project equity and debt providers and surety bond providers, as well as the appropriate local authorities, hospital trusts and universities.

Jarvis has now achieved its two key objectives of obtaining financial contributions to assist with funding the completion of the projects, and being released from its related liabilities wherever possible.

Altogether £110 million has been committed to the completion of these 14 projects, of which £59 million will be contributed by other project stakeholders, with the balance of £51 million being contributed by Jarvis plc. For each project, the funds will be put into independent trusts and independently appointed specialists will oversee completion of the construction. Another contractor will be taking over construction activities from Jarvis in respect of five of the projects.

Core financing arrangements

The board also announces that the Company and its core lenders have signed binding documentation for the extension of its financing arrangements through to 27 March 2006.

Commenting today, Alan Lovell, Group Chief Executive of Jarvis plc, said:

“The completion of these three interrelated transactions draws a line under Jarvis’s troubled financial history and enables us to focus on the future development of our promising core businesses of rail, roads and plant hire. In addition we will be completing all construction work and bringing this activity to a close.”

Contact Details

Merlin	Tel: 020 7653 6620
Paul Downes
Bridget Fury
Jarvis	Tel: 020 7017 8127
Paul Ravenscroft

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