Amey, preferred bidder for UK Ministry of Defence contract worth 500 million pounds

Ferrovial´s service subsidiary to maintain and manage the UK armed forces construction machinery pool for 15 years

Madrid, 17 December 2003. UK service company Amey, a Ferrovial subsidiary, has been named as the preferred bidder for the UK Ministry of Defence `C Vehicle´ contract. The contract, which involves the management and maintenance of the British armed forces construction machinery and vehicle pool, is worth 500 million pounds (710 million euros) over the 15-year concession period.

The contract, to be awarded under the Private Finance Initiative (PFI), will be managed by Amey Lex Consortium, which involves Amey in cooperation with RAC (specialised in defence fleet management and logistics). The contract involves maintenance, repair and acquisition for the entire fleet of approximately 2,500 vehicles, including construction machinery (cranes, diggers, bulldozers, etc.) as well as plant and equipment used in engineering projects. Services will mainly be provided to the British Army and will include units to support the Royal Air Force and the Royal Marines.

In addition to managing and optimising the dimension and utilisation of the construction machinery pool, the consortium will provide associated services, including spare part and inventory management, IT systems, equipment documentation, and operator and instructor training.

Amey: boosts Ferrovial´s services division and its international expansion

Ferrovial acquired Amey, one of the leading UK services companies, in May 2003. It is a strategic acquisition which boosts Ferrovial´s services division and its international expansion.

Amey´s services activities focus on infrastructure maintenance (roads, railways and underground rail) and facility management. One of its largest contracts is a 30-year concession to maintain and modernise three lines of London Underground (335 kilometres, 100 stations).

Ferrovial projects that Amey will have EBITDA of over 50 million pounds (74 million euros) in 2004. The full consolidation of Amey, combined with the recently-acquired services company Cespa, will expand Ferrovial´s service division, giving total revenues of more than 2,000 million euros and providing 30% of Group revenues in 2004 (out of a total of 7,000 million euros), compared to 7% in 2002.