RNS Number:2240K
Parkwood Holdings PLC
19 September 2001


                            Parkwood Holdings plc


Date - 19th September 2001


                Parkwood Holdings plc signs UK's first leisure

                  Private Finance Initiative (PFI) contract

Parkwood Holdings plc (Parkwood), the support services specialist, has signed
the UK's first leisure Private Finance Initiative (PFI) contract. The scheme
is to design, build, finance and operate a new leisure centre in Crosby,
Merseyside, for a 25-year term.

The leisure centre, to be sited on the Crosby seafront, will include a
25-metre swimming pool, a learner pool, sports hall, fitness suite, health
suite, aerobics studio, squash courts and a cafe and bar. Work on the leisure
centre is expected to begin in late October, with construction estimated to
complete in March/April 2003.

The scheme is the result of a partnership between Sefton Metropolitan Borough
Council and new company Waterfront Leisure (Crosby) Limited, which was
incorporated for the purposes of the Crosby PFI. Waterfront is a joint venture
between Parkwood PFI Projects Ltd. and construction company G&J Seddon Ltd.,
with each company owning 50 per cent of the equity. Waterfront will contribute
10% of the #8m funding for the scheme, with the remaining 90 per cent to be
provided as debt by the PFI Unit of Barclays Bank PLC.

Under the terms of the PFI, the building of the leisure centre will be
subcontracted to G&J Seddon, while the operation of the Centre will be
subcontracted to Glendale Leisure, a division of Parkwood. Glendale Leisure
estimates that over the 25-year contract period, it will receive an estimated
#750,000 per annum in revenues.

The Crosby development marks Parkwood's second successfully signed PFI scheme.
In August 2000 it signed a #10m project to finance, build and operate the
Defence Animal Centre in Melton Mowbray for the Ministry of Defence.
Construction on the Defence Animal Centre is nearing completion and on the 1st
December 2001 Glendale Facilities Management, another subsidiary company of
Parkwood, will commence operations.

Currently, Parkwood's PFI team is working on a stream of PFI projects valued
in the region of #90m. It is now one of two bidders for another leisure scheme
in the London Borough of Bexley with a decision on preferred bidder status
expected at the year end. It is also in the earlier negotiation stages of a
further leisure project in Greater London.

Sport England, formerly the English Sports Council, estimates that there will
be in the region of #3bn investment in sports and leisure developments over
the next ten years.



Chairman of Parkwood, Tony Hewitt, said:

"Parkwood is benefiting from our PFI unit's experience and relationships in
the leisure and defence sectors. We are optimistic that we will be able to
announce more news from our PFI team later this year."

Contacts:

Tony Hewitt, Executive Chairman, Parkwood Holdings plc, Tel - 01772 627 111

Neil Boom, Director, Gresham PR Ltd, Tel - 020 7329 7555
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