REG-Interserve PLC: Re Contract

INTERSERVE JOINT VENTURE AWARDED £250m

UNITED UTILITIES FRAMEWORK AGREEMENT

Interserve, as part of the KMI Plus Joint Venture, is pleased to announce the
award of a £250 million contract for the Non-infrastructure Capital Delivery
Framework with United Utilities. This is an extension into AMP5 of the AMP4
framework agreement, which was an option available to United Utilities subject
to performance.

KMI will now be working with United Utilities to March 2015 to deliver a
variety of new build, maintenance and refurbishment work. The relationship was
originally established in 2002 with AMP3 and then progressed when the joint
venture was awarded a place on the AMP4 framework running from 2005-2010.

The AMP5 win follows the team's recent successes in winning Partnership
Initiative of the Year in the Water Industry Achievement Awards, and its Hodder
Service Reservoir scheme was named best Environmental Project in the
Construction News Quality Awards.

Adrian Ringrose, Interserve Chief Executive, said, "This win shows the value of
our long-term relationships, both with our joint venture partners and with
United Utilities as a highly valued client. We operate as a team focused on
common goals and have achieved some impressive results - and we shall continue
to do so in AMP5."

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For further information please contact:

Giles Scott 0118 960 2307
Head of Corporate Communications

Elizabeth Morley / Tom Roberts 020 7379 5151
Maitland

About Interserve

Interserve's vision is to be the Trusted Partner of all our stakeholders. We
are a services, maintenance and building group operating in the public and
private sectors in the UK and internationally. We offer advice, design,
construction and facilities management services for society's infrastructure
and provide a range of plant and equipment in specialist fields. Interserve is
based in the UK and is a FTSE 250 company. It has revenue of £1.8 billion and a
workforce of 50,000 people worldwide. Website: www.interserve.com.

About KMI Plus

KMI Plus is a joint venture between Kier Construction, J Murphy and Sons
Limited, Interserve and Mouchel. KMI Plus is responsible for the detailed
design, construction and final commissioning of improvement projects, both on
the water and wastewater networks, in the north of United Utilities' operating
area.