1st half development activity

CRH PLC
5 July 2001

         CRH ANNOUNCES FURTHER DEVELOPMENT INITIATIVES OF EURO 294 M

CRH plc, the international building materials group, announces a range of
development initiatives totalling euro 294.0 million undertaken during the
first half of 2001. These initiatives are in addition to the acquisition of
Mount Hope Rock Products (euro 160.5 million) announced in April and bring
total development activity in the first half of 2001 to over euro 450 million.

The principal initiatives contained in this Development Strategy Update may be
summarised as follows:


  * Materials - Europe : euro 2.0 million - the ongoing development of CRH's
    downstream materials activities in Poland through the acquisition of a
    producer of asphalt and readymixed concrete based near Katowice in
    Silesia.

  * Products & Distribution - Europe : euro 80.7 million - significant
    expansion of CRH's concrete products and insulation activities in France
    and Germany respectively, together with attractive bolt-on acquisitions
    for Ibstock's clay brick business in Britain and the Group's distribution
    operations in the Netherlands and in Ile-de-France.

  * Materials - North America : euro 113.8 million - further acquisitions by
    the Materials Division in Utah, Washington, Michigan and Vermont which
    consolidate market leadership positions together with the completion of
    the fifth bolt-on transaction in the Ohio/West Virginia region since the
    acquisition of The Shelly Company in February 2000.

  * Products & Distribution - North America : euro 97.5 million - continued
    growth of the Precast Group's interests in Georgia and New York and a
    number of significant additions for CRH's Architectural Products Group in
    the United States and Canada aimed at expanding the product range and
    enhancing national market leadership.

Commenting on these developments, Liam O'Mahony, CRH Chief Executive, said:

'The initiatives announced today, including 20 bolt-on acquisitions, are very
much in keeping with our well-proven and long-term development strategy. We
believe that these deals will help to drive growth and consolidate market
leadership positions across all Divisions of the Group.'



Details by Division



Materials - Europe : euro 2.0 million

Poland

In March, the Group acquired PRD Budostal, an asphalt and readymixed concrete
producer with annual sales of euro 7 million. In addition to further enhancing
the vertical integration of CRH's operations, this acquisition provides access
to the attractive blacktop and readymixed concrete markets in the vicinity of
Katowice in southwestern Poland. Goodwill of euro 0.4 million arose on this
transaction.



Products & Distribution - Europe : euro 80.7 million

Concrete Products Group

In February, the Group bought out the remaining 20% shareholding in
Dijon-based Prefaest, a leading manufacturer of precast concrete drainage
systems and telecommunications vaults in France. This was followed in April by
the acquisition of La Societe Beton Moule Industriel (BMI), a major supplier
of precast concrete products to the French utilities sector with annual sales
of euro 47 million. The integration of BMI with Prefaest expands CRH's
presence in the utility precast sector in Mainland Europe.

Clay Products Group

In May, Ibstock acquired Kevington Building Products, a specialist clay brick
cutting and bonding company operating from four locations in the south of
England. With annual sales of euro 5 million and market leadership in the
cutting and bonding segment, Kevington expands Ibstock's existing presence in
this niche sector and provides an excellent base for further development.

Building Products Group

In May, the Insulation Group significantly expanded its presence in the
European insulation market through the acquisition of 100% of Gefinex, the
leading manufacturer of polyethylene insulation (PE) in Germany. Gefinex also
has a 49% stake in Gefinex Jackon, the joint market leader in the German
extruded polystyrene (XPS) market. CRH's wholly owned XPS operation in
Belgium, Vebofoam, has been transferred to Gefinex Jackon as part of the deal.
With combined annual incremental sales of euro 45 million, this deal provides
CRH with market leadership in both the XPS and PE sectors in Germany, Europe's
single largest construction market, and will enable CRH to benefit from
innovative product and process development initiatives previously undertaken
by Gefinex.

Distribution Group

In May, Van Neerbos acquired KARWEI Gorinchem, the largest store in the KARWEI
DIY franchise in the Netherlands. With annual sales of euro 7 million, the
acquisition strengthens CRH's presence in the Dutch DIY market where Van
Neerbos now operates a total of fifty two GAMMA and KARWEI stores.

Also in May, the Group purchased Buscaglia, a specialist infrastructural
products distributor with annual sales of euro 22 million. Operating from
three locations in the northeast of Paris, the acquisition further
consolidates CRH's presence in merchanting in the Ile-de-France region.

The total cost of the six Products & Distribution - Europe transactions is
euro 80.7 million, on which goodwill of euro 25.4 million arises.



Materials - North America : euro 113.8 million

Expansion of the Materials Division in North America continued successfully
into the first half of 2001, during which period seven bolt-on deals were
completed, adding combined annual sales of euro 91 million.

Northeast

In March, Pike Industries acquired Fuller Sand and Gravel, a producer of
aggregates and asphalt based in Danby, Vermont. The acquisition facilitates
the realisation of production synergies and provides a guaranteed source of
high quality aggregates for Pike's operations in the area.

Midwest

In February, Thompson-McCully acquired Klett Construction, a paving contractor
in southwest Michigan. The consideration for the transaction included the
exchange of two asphalt plants located in Weymouth and Watertown,
Massachusetts. In addition to enhancing Oldcastle's presence in the asphalt
paving market in Michigan, the acquisition will lead to savings in liquid
asphalt and energy costs.

In May, The Shelly Company acquired Tri-County Limestone and Hardin Quarry
located near Columbus, Ohio. These companies are engaged in the production of
aggregates and have permitted aggregate reserves of 37 million tons. This is
the fifth bolt-on deal to be completed by Shelly since acquisition by CRH in
February 2000 further consolidating Shelly's presence in a key market area and
increasing the group's self-sufficiency in aggregate supply in that area.

West

Foss Lewis and Sons Construction, a construction and aggregates company based
in Salt Lake City, Utah, was acquired in February. The construction
activities, which focus on excavation and related work, have been disposed of
post-acquisition. The Foss Lewis quarry is situated immediately adjacent to
the existing Staker facility in Salt Lake City and has aggregate reserves of
20 million tons.

In April, the Division acquired selected assets of US Aggregates also in Salt
Lake City. The transaction entailed the payment of cash and exchanging
existing CRH quarry assets in Utah (Keigley and Lehi) for two quarries in Salt
Lake City (Falcon Ridge and Beck Street), one asphalt plant and seven
readymixed concrete plants. The assets acquired are an excellent fit with
Staker's aggregate and asphalt operations and Parson's readymixed concrete
activities in the Salt Lake City area and should allow the Group to achieve
synergies in the areas of production and delivery costs.

The aggregates and readymixed concrete operations of Hanson America in Salt
Lake City were acquired in May. The quarry, located to the south of Salt Lake
City with permitted reserves of 13 million tons, is strategically positioned
to service the Division's increased presence in the Salt Lake City area.
Together with the US Aggregates asset exchange, this acquisition further
augments Parson's readymixed concrete activities in Salt Lake City and offers
scope for adding value through overhead reduction and operational synergies.

Also in May, the Division acquired Wenatchee Sand & Gravel and Central
Washington Concrete, the largest producers and suppliers of construction
aggregate in north central Washington. The deal provides additional long-term
strategic reserves and will enable the attainment of production efficiencies
in combination with CRH's existing operations in the region.

The total cost of the seven deals undertaken by Materials - North America
amounts to euro 113.8 million on which goodwill of euro 22.8 million arises.

Products & Distribution - North America : euro 97.5 million

Precast Group

The Precast Group completed two acquisitions in the first half of 2001
generating incremental annual sales of approximately euro 25 million.

Selected assets of New Basis in Toccoa, Georgia were acquired in January
following similar acquisitions in California announced in the second half 2000
Development Strategy Update. With annual sales of euro 7 million, the
acquisition broadens the Group's product offering to encompass customised
panel huts and specialist exterior finishes and expands coverage in the
strategically significant Georgia, Tennessee and Carolinas markets.

In June, the Group acquired certain assets of AFCO, a precast concrete
producer located in the Long Island area of New York. This acquisition gives
the Precast Group a solid manufacturing presence, a loyal customer base and a
platform for future growth in the important and lucrative New York City and
Long Island markets. AFCO's utility product line complements the Precast
Group's core utility contractor business and gives the Group its first
significant position in the sanitary and storm manhole markets in the
Northeast.

Architectural Products Group (APG)

Canada

In February, APG bought out the 35% minority shareholding in Groupe Permacon
in accordance with the terms of an option negotiated at the time of CRH's
initial investment in 1997. Permacon operates four plants in Quebec and two in
Ontario and produces a broad range of masonry, paving and retaining wall
products for the homecenter and hardscapes sectors.

In March, APG acquired Blue Circle Masonry Canada, a producer of concrete
block and architectural masonry with four manufacturing facilities in Ontario.
In addition to cost reduction opportunities, the acquisition provides a strong
position in Canada's most populous province with an established network of
plants through which APG can continue to build its presence in the premium
hardscapes market in the province.

In April, APG purchased Decor Precast, a leading producer of homecenter and
masonry products with manufacturing facilities in Ontario and Michigan. The
acquisition of Decor consolidates APG's position in Ontario and facilitates
increased penetration of the attractive homecenter sector in Canada. In
addition, savings will be derived in transportation costs through employing
existing APG companies in Quebec, Ontario, New York and Michigan as supply
hubs.

APG has also commenced a project to upgrade and reopen a large pallet paver
plant at the Permacon location in Bolton, Ontario at a cost of euro 4.2
million. The facility, which is expected to be completed by the end of this
year, provides incremental capacity to assist both Permacon and Decor in
developing APG's homecenter and hardscape business in Ontario. This
expenditure follows similar investments in Texas, Pennsylvania, Tennessee,
California and Massachusetts announced in recent years.

United States

Also in February, APG acquired Big M of Culpeper, a manufacturer of concrete
and garden products based in Culpeper, Virginia. In combination with existing
activities, the acquisition generates savings in transportation costs and
increases APG's involvement in the rapidly growing retail sector for
specialist concrete products.

The Group acquired Best Block South, which holds an exclusive license to
manufacture patented segmental retaining wall products in North and South
Carolina, Georgia, Florida and eastern Tennessee, in March. The acquisition
expands the Group's product offering to the homecenter market in several key
southeastern states and provides an excellent base for future development
initiatives in this specialist sector.

In May, the Group acquired selected assets of three block plants in the
Carolinas previously owned by Unicon Concrete. The plants acquired assist in
relieving capacity constraints at existing APG operations in the region,
permitting the Group to optimise production, reduce transport costs and
introduce other products (including segmental retaining walls arising from the
acquisition of Best Block South as discussed above).

The five acquisitions completed by APG in the first half of 2001 generate
incremental annual sales approximating euro 85 million.

The total cost of the five acquisitions and the buyout completed by Products &
Distribution - North America amounts to euro 93.3 million including goodwill
of euro 35.8 million.



                                  ** Ends **



Contact at Dublin 404 1000 ([phone])

Liam O'Mahony     Chief Executive

Harry Sheridan          Finance Director

Myles Lee          General Manager - Finance

CRH plc, Belgard Castle, Clondalkin, Dublin 22, Ireland

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Registered Office, 42 Fitzwilliam Square, Dublin 2, Ireland