Interim Management Statement

Bellway p.l.c.                                 

                         Interim Management Statement                          

                                 10 June 2011                                  

Bellway is today updating the market as to its current trading position by
issuing an Interim Management Statement (IMS) relating to the period from 1
February to 31 May 2011.

The uncertainties that affected consumer confidence during the challenging
autumn trading period appear to have diminished and, encouragingly, there has
been a return towards a more normal reservation pattern with a healthy spring
selling season, despite ongoing concerns remaining in the wider economy.

In the seventeen weeks under review, the Group has achieved a sales rate of 111
units per week, an increase of 9% on the same period last year, from an average
of 195 sites. The average selling price of these reservations is £182,000, an
increase of 4% compared to last year, driven by continuing changes in product
mix, combined with a greater contribution of higher value units from divisions
in and around London, where demand remains strongest.

At the time of the interim announcement in March the Board outlined its target
of increasing unit completions for the year ending 31 July 2011 by around 5%.
The Board is therefore pleased to announce that these reservations are now
secure, subject to delivery, and furthermore some 1,600 reservations have been
taken for completion in 2011/12. Operating margin continues to improve as
trading from new sites, acquired since the downturn at gross margins in excess
of 20%, starts to contribute to a greater proportion of completions.

The Group continues its disciplined approach to land procurement and, within
these restraints, all divisional land teams have been active during the four
months under review, with £220 million expended on land and land creditors in
the year to date. This expenditure, together with a gradual increase in work in
progress, resulted in the Group's net debt rising to £57 million at 31 May,
compared with total committed facilities of £290 million. Subject to
opportunities which may be available over the coming weeks, the Board expects
this level of gearing to reduce by the year end.

Constraints in relation to mortgage supply, particularly regarding first time
buyers, combined with wider economic concerns, continue to pose challenges to
the sector. Nevertheless, with a strong order book, low gearing, and the
increasing contribution from sites acquired since the downturn, the Board
believes that Bellway is well positioned to continue delivering both operating
margin and volume growth if market conditions remain unchanged.

The Group will announce a trading update for the financial year ending 31 July
2011 on Friday 5 August.

FOR FURTHER INFORMATION PLEASE CONTACT:

JOHN WATSON, CHIEF EXECUTIVE & ALISTAIR LEITCH, FINANCE DIRECTOR FROM 8.00 AM
ONWARDS ON 0191 217 0717

Certain statements in this announcement are forward-looking statements which
are based on Bellway p.l.c.'s expectations, intentions and projections
regarding its future performance, anticipated events or trends and other
matters that are not historical facts. Such forward-looking statements can be
identified by the fact that they do not relate only to historical or current
facts. Forward-looking statements sometimes use words such as "aim",
"anticipate", "target", "expect", "estimate", "intend", "plan", "goal",
"believe", or other words of similar meaning. These statements are not
guarantees of future performance and are subject to known and unknown risks,
uncertainties and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements.
Given these risks and uncertainties, prospective investors are cautioned not to
place undue reliance on forward-looking statements. Forward-looking statements
speak only as of the date of such statements and, except as required by
applicable law, Bellway p.l.c. undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.