AMY Amey

    2 January 2003

                                   Amey Plc                                    

                     COMPLETION OF LONDON UNDERGROUND PPP                      

Amey plc very much welcomes the announcement by Tube Lines (Holdings) Limited
("Tube Lines"), the consortium company in which Amey is a partner, that
completion has been reached on the Public Private Partnership. Tube Lines now
holds a 30 year concession from London Underground Limited ("LUL") to provide
full infrastructure services for the Jubilee, Northern and Piccadilly
underground lines.

Tube Lines will take over responsibility in early January, and thereafter work
in partnership with London Underground, with the responsibility for the
improvement and maintenance of 100 stations, 340 kilometres of track and 250
trains, carrying 1.75 million passengers every weekday. It will have the
benefit of 2,500 employees, who have transferred from LUL.

Tube Lines expects to reduce delays by an average of almost 10 per cent in the
first 12 months. Over the first 7� years of the project, passengers on the
three lines will see 42 miles of track refurbished or replaced, 97 stations
modernised or refurbished and 175 lifts and escalators refurbished or replaced.
There will be major upgrades to the Jubilee and Northern lines by 2009 and 2011
respectively, and a major upgrade to the Piccadilly line in the second 7� year
period.

It is expected that this will result in an approximate 20 per cent increase in
capacity over this part of the Underground network upon completion of the
upgrades. The performance of Infraco JNP will be measured principally on the
throughput of trains, the availability of the infrastructure and the ambience
of the trains and stations.

LUL will remain responsible for the management of the network, the safety
regime and 8,000 employees, including drivers and signalling and station staff.
It will also be responsible for ticketing, fares and payment of the annual
Infrastructure Service Charge to Infraco JNP.

The Government has confirmed that it will not transfer LUL to Transport for
London whilst the period for any appeal against the European Commission's
decision on State Aid is still running or any such appeal is still continuing.
In addition, the Government has provided certain indemnities to the members of
the Tube Lines consortium and the debt providers should any such appeal prove
successful and the transaction have to be unwound.

The three partners in Tube Lines are Amey, Bechtel and Jarvis. The equity
commitment of the three partners is �60 million each, and on 4th December 2002
Amey announced that it would complete the transaction with the benefit of an
equity support plan provided equally by its two partners. Under this
arrangement Amey has until the end of June to exercise its option to replace
the temporary credit support with its own funding. While Amey fully expects to
exercise that option, until it does so the economic benefits of the project
will be transferred into an escrow account together with �7 million of the
development fees recovered on closure. When Amey exercises its option the funds
in the escrow account less only the costs of the partners in providing the
facility, will accrue to the Company.

The consortium has also arranged a total of �1.8 billion of senior debt
financing and a further �135 million in mezzanine finance, all of which is
non-recourse to the consortium members. Almost all of the investment will be
made in the first 7� year period. The annual interest on the whole of the
investment will be met by the project funding, including interest on each
consortium member's commitments. Tube Lines will spend approximately �4.4
billion over the first 7.5 years of the concession.

The partners will second some 50 senior and experienced personnel to Infraco/
JNP and will receive secondment fees, and there will also be an opportunity,
under a gain share/pain share system, to benefit from improvements to the
annual Opex budget. Amey's income, after exercise of its option, is expected to
be in the order of �8 million in the first full year. In addition, Amey and
Jarvis are well equipped to bid for a range of services which Infraco JNP will
outsource, including track renewal work, signalling and facilities management.

Once it is a full member of the consortium, Amey will also benefit from the
expected pre-tax profits of Tube Lines. Amey's share is expected to be in the
region of �8 million per annum in the first full year, rising thereafter during
the first 7� year period.

Tube Lines will now begin work on the long overdue regeneration of this part of
the London Underground network. Tube Lines will be spending �1.6 million daily
on the maintenance and modernisation of the three lines, reducing delays,
improving cleanliness and starting work on the upgrading of the tracks and
signals. It can now get on with meeting the challenge of providing London and
Londoners with an underground rail system of which they can be proud.

                                     Ends                                      

For further information please contact:

Anthony Cardew, CardewChancery          Tel: 020 7930 0777                     
                                                                               
                                        Pager: 07659 550465                    



END

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