Mowlem plc

PRESS RELEASE

Ref: 007
Date: 10 October 2003
Embargo: Immediate release
Media Contact: Brian O'Neill on 020 8957 7235

MOWLEM CONSORTIUM REACHES AGREEMENT ON A-TRAIN SALE

The A-Train consortium - NCC, Vattenfall, Alstom and Mowlem - has reached conditional agreement with Macquarie Bank of Australia to sell A-Train AB, the company operating the Arlanda Express passenger rail link in Sweden. The company had revenues of approximately £27m in 2002.

The total agreed sale price is approximately £32m, comprising a cash portion of £5.5m, the assumption of commitments towards financiers of £16m and collateral of £10m for train-leasing agreements. Mowlem will receive £1.7m in cash and be released from commitments to A-Train’s financing in exchange for its 7% shareholding.

The sale is subject to certain conditions including approval from the Swedish government and A-Train’s financiers.

The Arlanda Express ferries passengers between Stockholm Central Station and Stockholm Arlanda Airport. Since its launch in November 1999, it has established itself as by far the most reliable means of transport in Sweden and has steadily increased passenger numbers, carrying 2.4 million people in 2002. Arlanda Express was among the very first PPP style projects in Europe and was Sweden’s first privately financed infrastructure project.

-ENDS-