The net book value of the 3 project interests included in the first tranche is anticipated to be £11.0 million at completion (excluding IAS39 marking to market). Laing will therefore recognise an estimated profit before tax of £12.1 million in 2005 relative to the initial cash consideration of £23.1 million. In addition, Laing is entitled to receive conditional deferred consideration of up to £3.6 million if the initial 3 projects are refinanced within 18 months and if client clearance is obtained on the fourth project within 9 months of the date of sale. No profit will be recognised in respect of the deferred consideration until it becomes unconditional.

In relation to the project interests now being sold, the value in the Portfolio Valuation referred to in Laing's interim results announcement for the six months to 30 June 2005 was £16.2 million and the profit before tax recognised on the project interests during that period was £1.1 million (year to 31 December 2004
- £1.9 million).

The proceeds from the sale will be retained by Laing to fund future growth in its portfolio of PFI/PPP project developments.

Allianz is placing all its newly acquired PFI investments into an infrastructure investment vehicle, which will be serviced by Laing Capital Management, a wholly owned subsidiary of John Laing plc. Laing Capital Management will receive a management fee. Allianz intends to seek further infrastructure investments, which may be placed in the vehicle.

Andy Friend, Chief Executive of John Laing plc commented

'This strategic alliance allows Laing to harvest value from its project portfolio, whilst addressing the concerns of the public sector for management continuity in operational projects.

We are committed to ensuring high quality operational performance for the longer term and will retain an equity exposure to the success of these partnership projects.

The proceeds will be utilised for new project investments and at the same time the expansion of Laing Capital Management will provide an additional avenue for Laing Group to leverage its infrastructure expertise.

We look forward to a long and successful partnership with Allianz in developing an innovative approach to realising the potential of this important new investment class.'

For further information, please contact:

Finsbury Group

Ed Orlebar/Faeth Birch/Robin Walker
Tel: 020 7251 3801

Notes to Editors

Allianz

Allianz provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of property and casualty insurance, life and health insurance, asset management and banking.

In 2004 Allianz Group's total revenues amounted to 96.9 billion euros. At the end of 2004 Allianz Group had more than one trillion euros in assets under management, of which 585 billion euros were managed for third parties.

John Laing plc

John Laing is the UK's listed market leader in PPP/ PFI infrastructure projects.
It currently invests in 49 PPP/ PFI projects in the rail, roads and accommodation sectors, 33 of which are operational.