Interserve Wins Procure 21's First Contract

Project at Friarage Hospital, Northallerton, worth �13m

Interserve Project Services has won the first contract to be awarded in the
national rollout of the NHS's ProCure 21 framework programme, just as it did in
the pilot for the programme last year. The �13m contract with South Tees
Hospitals NHS Trust covers the design and construction of new facilities as
well as the refurbishment of existing buildings at Friarage Hospital in
Northallerton, North Yorkshire.

ProCure 21 is a �7 billion, five-year programme covering all non-PFI
construction projects in the NHS with a capital cost greater than �1 million.
Its purpose is to deliver better-quality healthcare buildings and improved
value for money through the extensive use of long-term partnering. Following a
successful pilot in the north west and midlands in which Interserve played a
significant role, the company was one of 12 Principal Supply Chain Partners
named by NHS Estates in its announcement of the national roll-out in September
2003.

Demonstrating the efficiency of the procurement process under the ProCure 21
regime, the first enquiry concerning Friarage Hospital was made at the
beginning of October; after subsequent discussions Interserve was confirmed as
the selected partner and design development and enabling works are now under
way. Construction will begin in January 2004 and is expected to be complete in
the summer of 2006.

The project includes the provision of a new paediatric unit, gynaecology ward,
pathology department, pharmacy, kitchens and restaurant together with the
refurbishment of the existing maternity department and day-case/endoscopy unit.
Interserve has had to plan for a number of issues, including the fact that it
will be working in a live environment. It is critical that existing services be
maintained, so the construction will be carried out as a phased build with the
relocation of departments as the new facilities are created.

"Having won the first contract in the pilot, it's great that we've had the same
success in the national programme," said John Vyse, Interserve Plc director.
"Interserve has been an enthusiastic backer of ProCure 21 since its inception.
We've worked hard with NHS Estates to help develop the programme so that
suppliers such as ourselves can deliver the high quality facilities NHS Trusts
need in a timeframe and at a cost that make sense for all concerned. The new
Friarage Hospital will provide a valuable service to the local population -
we're proud to be making it possible."



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