Atkins pension plan agreement

ATKINS REACHES AGREEMENT ON ACTUARIAL PENSION PLAN VALUATION

WS Atkins plc ("Atkins", or "the Group"), the design and engineering consultancy group, announces today that it has reached agreement with the Trustee of the Atkins Pension Plan ("the Plan") with respect to the 2010 triennial actuarial funding valuation and associated recovery plan.

The result of the triennial funding valuation has been agreed and shows a funding deficit on an actuarial basis of £293 million as at 31 March 2010. The most recent reported accounting deficit under IAS19 was £379 million (£277 million after deferred tax) as at 30 September 2010.

The Group's principal UK employing company has also commenced today a consultation process with its employees who are members of the Plan relating to a proposal to remove the link between employees' accrued pension and future increases in salary. This change, which affects approximately 1,400 employees, would reduce the funding deficit by £28 million down to £265 million.

A level of company contributions has been agreed which is designed to eliminate this resultant funding deficit of £265 million over a period of ten years from 1 April 2010. It comprises a payment of £32 million for the year ended 31 March 2011, £26 million per annum for each of the subsequent two years ending 31 March 2013, and £32 million per annum for the following seven years ending 31 March 2020.

In addition, to reduce further both the size of the funding deficit and its future volatility, the Group announces its intention to carry out an enhanced transfer value exercise for deferred members of the Plan and a pension increase exchange for pensioners. Any resultant reduction in the funding deficit, which will be dependent upon the level of take-up of the offer by members of the Plan, will be reflected in reduced deficit contributions going forward.

This latest package of measures to address the pension deficit follows a number of previous steps taken by the Group to reduce its exposure to post-employment benefit liabilities, including closing the Plan to new entrants in 2001 and stopping future accrual for the majority of existing members in 2007.

Enquiries:

Notes to Editors:

1. Analyst conference call

A conference call for analysts will be held at 0800 hours today. Dial-in details are available from Smithfield +44 (0) 20 7360 4000.

2. Atkins

Atkins (www.atkinsglobal.com) plans, designs and enables the delivery of complex infrastructure and buildings for clients in the public and private sectors across the world. Atkins is the largest engineering consultancy in the UK and the world's eleventh largest international design firm (sources: New Civil Engineer Consultants File, 2010; Engineering News-Record, 2010).

Atkins is the official engineering design services provider for the London 2012 Olympic and Paralympic Games.

3. Atkins Pension Plan

At 31 March 2010 the Plan had 10,994 members, including 1,660 active members, 6,563 deferred members and 2,771 pensioners.

Atkins has agreed to provide a parent company guarantee in relation to the company contributions set out above.

The agreement will be submitted to the Pensions Regulator who will conduct a review in accordance with the Pensions Act 2004.

This agreement has no impact on the Group's IAS19 accounting deficit (and related income statement charge) for the year ended 31 March 2011, which will be announced with the Group's full year results on 16 June 2011.

Under the 2007 triennial valuation, the Group agreed to make deficit payments of £37.5m in the year ended 31 March 2008, £12.5m in April 2008 and £8m each quarter thereafter until 31 March 2014.

The next funding valuation will be performed as at 31 March 2013.

4. Cautionary Statement

This information has been prepared for the shareholders of Atkins, as a whole, and its sole purpose and use is to assist shareholders to exercise their governance rights. Atkins and its directors and employees are not responsible for any other purpose or use or to any other person in relation to this announcement.

The report contains indications of likely future developments and other forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group's results, strategy and prospects. Forward-looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ. No obligation is assumed to update any forward-looking statements, whether as a result of new information, future events or otherwise.