19 Feb 2002

Interserve Plc and its partners in KMI Water have been awarded a £245m framework agreement by United Utilities to construct a variety of water infrastructure projects throughout West Lancashire and North Manchester over the next three years. Interserve's Project Services division will be working with KMI Water joint venture partners Kier Construction and J Murphy and Sons on the project in the 'Central Framework Area' - the largest, by value, of three framework agreements awarded by United Utilities.

KMI Water projects will cover a wide range of water infrastructure works, including new build, asset renewal and refurbishment, water and wastewater treatment works, as well as collection systems. Work will be undertaken as a totally integrated joint venture, with the management team located at Leigh, close to United Utilities Head Office at Lingley Mere, Warrington. Local skills and resources will be used wherever possible.

Interserve Chairman, Mike Bottjer, commented:

"We are delighted to have been chosen by United Utilities to play such a vital role in this exciting project and look forward to working with them and our partners in KMI Water. Interserve's philosophy is based on working closely with clients and partners and the integrated team approach of KMI Water will deliver best value to United Utilities and its customers."