Pre close trading statement

Jarvis plc, ("Jarvis") the rail and plant services group, is providing this update on trading for the year ended 31 March 2008 in advance of entering its close period. Its preliminary results announcement is expected on 28 May 2008.

Current Trading

The Group continues to follow its strategy for recovery and trading in the second half of the current financial year will show improvement over the first half performance. It is anticipated that the full year results will be in line with management expectations. We are pleased to confirm that a total Tax repayment of £6.5 million has been received in full from Her Majesty's Revenue and Customs. The refund, as announced on 7 February, will be reflected in full in the Group's financial results for the year ended 31 March 2008.

Rail

Since the last trading update on 14 February 2008, the business has secured new track renewal and signalling contracts with Network Rail worth in excess of £40 million. These include an extension to contracts on the West Coast, the Airdrie to Bathgate switches and crossing contract, Killwinning relay room signalling enhancement project, Moss level crossing and Balne level crossing renewals and the implementation of the RS12 contract as part of the A09 line upgrade on the West Coast.

Despite challenging weather conditions over Easter, Jarvis Rail has worked closely with Network Rail to successfully, safely and efficiently deliver engineering works at more than 50 work sites countrywide. These included the high profile engineering projects at Rugby and Northampton. The Rugby project team undertook a heavy programme of permanent way and overhead line construction works throughout the length of the project area in an overall possession of 101 hours and the Northampton works included the installation of a new crossover and points together with 160 yards of formation renewal.

As one of Network Rail's four prime contractors for track renewals the integration of the East Midlands Integrated Management Team (IMT) operations continues following the successful transition to Jarvis Rail's responsibility in January. The transfer of our IMT operations in Scotland to another contractor following 'Six to Four' is expected to be completed in April 2008.

From April Jarvis Rail will finish its current contract working on the Northampton resignalling project following Network Rail's decision to move the work into its central signals division.

Plant

Plant has continued to benefit from the increased activity levels in Jarvis Rail and continues to work hard with its customers to improve visibility. The business has secured the renewal of its Seasonal Treatment Fleet contract worth £5m for a further two years.

Small plant turnover has continued to increase throughout the second half and in part it has been achieved by redistribution of key assets and skills throughout the business to ensure better utilisation.

At the end of February Fastline Freight extended its service with the addition of a new route between Thamesport and the North West, complementing its existing services to the North East and Midlands and in direct response to customer demand.

For further information, please contact:

Toni Jackson, Group Communication Manager - 01904 712667 or 07919 939031

Isabel Podda at Buchanan Communications – 0207 466 5000

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