RNS Number:5883T
VT GROUP PLC
23 December 2003


VT GROUP EXPANDS SUPPORT SERVICES ACTIVITIES IN THE US



VT Group, the support services and shipbuilding company, has expanded its
portfolio in the United States with an agreement, approved by the Court today,
to acquire several key contracts held by J.A.Jones Services Group, which is in
US Chapter 11 bankruptcy proceedings.


VT Griffin Services has signed an agreement with the Debtors in Possession of
J.A.Jones Services Group and will take over the contracts during January 2004.
The agreement, for a consideration of $18m payable from the Group's cash
resources, will extend VT's US support services activities by adding a total of
ten contracts held by J.A.Jones.


The contracts, which have an annual turnover of over $100m and order backlog of
$400m, employ approximately 800 people, who will become employees of VT Griffin
Services.  Operating margins are currently 3% and should improve with
integration into the VT Griffin Services business.


VT is already a major supplier of support services to the US military under the
banner of VT Griffin Services, which has its head office in Atlanta, Georgia.
The additional contracts include three for the US Navy, notably base maintenance
at the major submarine facility in Kings Bay, Georgia which has seven years to
run. Among other contracts to be purchased from J.A.Jones are base and
facilities management activities for the Department of Defense, Federal Aviation
Administration and local government.


The move will almost double VT Group's turnover from US support services and
reflects the strategy outlined in our interim results in November to expand its
involvement in the provision of such services for the US military and related
customers.


VT Group Chief Executive Paul Lester commented: "We are becoming a major player
in the US support services market and our aim is to grow the business to an
annual turnover of $500m. over the next five years by organic growth and
acquisition. The J.A.Jones purchase is an important milestone in that progress."


Notes


* Assets attributable to these contracts were $12m as at 31 December 2002

. However, assets are likely to be considerably lower at completion after fair
  value adjustments. Operating profits on the contracts in the year to 31 
  December 2002 were $5m before allocation of central overheads.


* VT Group is an international Government services provider. The Group is
divided into two businesses - support services and shipbuilding.  Together,
these activities employ 10,000 people.  Turnover is approximately #600m.


* VT Support Services  - comprising activities in both the military and
public sectors - now accounts for over two thirds of turnover.  Military support
is tri-service and includes training, platform and equipment maintenance and
facilities management, while services for the public sector focus on training
and education, careers guidance, and secure communications.


* VT Shipbuilding designs and builds a wide range of vessels for the
Royal Navy and navies throughout the world. Smaller boats are also supplied to
the commercial market. Specialist marine equipment is provided to both the naval
and commercial sectors.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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