Lovell commences ?22 million development

2 February 2010

Lovell commences £22 million development for River Clyde Homes

Morgan Sindall plc, the construction and regeneration group, today announces that its Affordable Housing division, Lovell, has started work on a £22 million development for River Clyde Homes. The development is the first to be built as part of a four-year framework agreement with River Clyde Homes.

Work includes construction of 195 homes at three sites in Port Glasgow, near Greenock, in Inverclyde. Upon completion, the homes will be available for rent through the housing association. Lovell is working closely with the Inverclyde Trust to create employment opportunities for local people and local businesses. Work is scheduled to finish by May 2012.

Paul Smith, Chief Executive of Morgan Sindall plc, said:

"Lovell is a market leader and has a proven track record of working in partnership with housing associations to deliver high quality projects. This is the first development as part of our framework agreement with River Clyde Homes and we look forward to further developing this relationship in the coming years."

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Editor's notes:

Morgan Sindall plc is a top UK construction and regeneration group which operates through five divisions of fit out, construction, infrastructure services, affordable housing and urban regeneration, which are supported by two specialist units of investments and professional services.

Lovell, which has offices in Birmingham, Bristol, Cambridge, Cardiff, Glasgow, Leatherhead, Leeds, London, Manchester, Merseyside, Norwich, Nottingham and Tamworth, is one of Britain's leading provider of affordable housing.

ENQUIRIES:

Morgan Sindall plc Tel: 020 7307 9200

Paul Smith, Chief Executive

David Mulligan, Finance Director

Blythe Weigh Communications Tel: 020 7138 3204

Tim Blythe Mobile: 07816 924626

Paul Weigh Mobile: 07989 129658