H1 Development Update

CRH PLC
02 July 2007

             D E V E L O P M E N T   S T R A T E G Y   U P D A T E



                                                                     2 July 2007


  CRH ANNOUNCES ADDITIONAL FIRST HALF 2007 ACQUISITION INITIATIVES OF EURO 395
                                    MILLION
               BRINGING FIRST HALF SPEND TO ALMOST EURO 1 BILLION


CRH plc, the international building materials group, today announces 31
acquisition initiatives totalling euro 395 million undertaken during the first
half of 2007.

These initiatives are in addition to the four transactions already separately
announced during the period:  the acquisition of Swiss builders merchant Getaz
Romang announced in April and completed in late May; the acquisition of a 50%
stake in Denizli Cement in Turkey and the buyout of the remaining 50% of Paver
Systems in the US which were announced in April; and the purchase of Harbin
Sanling Cement Company in China which was announced in February.  The
transactions announced today bring total spend on acquisitions and investments
in the first half of 2007 to almost euro 1 billion.

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

'Following the record net spend of euro 2.1 billion reported in 2006, the strong
development momentum has carried into 2007 with a total of 35 transactions
completed in the first six months of the year. We are particularly delighted
that this period has also seen the first steps by CRH into China and Turkey ,
both of which represent good platforms for further growth and development for
the Group.'

The initiatives contained in this Development Strategy Update are as follows:

•  Europe Materials -  6 acquisitions for euro 50 million

Two bolt-on transactions were completed in Poland , and Secil, in which CRH has
a 49% joint venture interest, completed one acquisition and three buyouts in
Portugal and Lebanon.

•  Europe Products -  9 acquisitions for euro 68 million

The Concrete Products group acquired three businesses in France , Denmark and
the UK , and also bought out the majority shareholding in a joint venture in
Poland . The Building Products group continued the expansion of its Construction
Accessories platform adding companies in Italy , Norway and France , and
strengthened its Fencing & Security business with acquisitions in Sweden and
France.

•  Europe Distribution -  4 acquisitions for euro 73 million

The Distribution group added a total of 21 builders merchants outlets to its
existing branch network with acquisitions in France and the Netherlands , and
completed its first acquisition in Spain adding 9 DIY stores. In addition, the
Group's Bauking joint venture completed an acquisition which added 16 builders
merchants and 13 DIY stores in Germany.

•  Americas Materials - 4 acquisitions for euro 24 million

Four bolt-on acquisitions were completed by Americas Materials in its Central
and West divisions.

•  Americas Products - 6 transactions for euro 175 million

The Glass Group took a further major step in its development strategy with the
acquisition of Vistawall, a leading US manufacturer of architectural aluminium
glazing systems headquartered in Texas . The Architectural Products Group
completed two acquisitions in Florida , one in Illinois and one in the
Northeast, and also bought out the minority interest in a business in Georgia.

•  Americas Distribution - 2 acquisitions for euro 5 million

Two roofing and siding acquisitions were completed in California , adding two
new locations to the group's existing branch network.





Contact at Dublin 404 1000  ([phone])
Liam O'Mahony              Chief Executive
Myles Lee                  Finance Director
Eimear O'Flynn             Head of Investor Relations
Maeve Carton               Group Controller


Europe Materials: euro 50 million

The Europe Materials Division completed six transactions at a total cost of euro
50 million during the first half of 2007. Incremental annual sales arising from
these transactions amount to euro 62 million.

Poland

The Polish ready-mixed concrete operations of the Schwenk group were acquired in
June.  Schwenk is a major readymixed concrete producer which operates through a
network of 15 plants strategically located across Poland with good
infrastructural access and proximity to high-quality aggregates reserves.  The
acquisition adds annualised sales of euro 19 million and strengthens CRH's
existing leadership position in the national ready-mixed concrete market in
Poland .

Also in June, CRH's subsidiary OKSM acquired Gniewkow, a major supplier of
granite in Poland .  With annual sales of approximately euro 2 million, Gniewkow
has proven and permitted reserves of 18 million tonnes near Wroclaw in the
southwest of the country.

Portugal

CRH's joint venture Secil, in which the Group has a 49% stake, completed four
transactions in Portugal and Lebanon during the first half of 2007.

In January, Secil increased its interest in Secil Martinganca, the market leader
in Portugal in dry mortar, by 45.8% to a total shareholding of 97%. Also in
January, Secil acquired an additional 21.9% of Ciment de Sibline, in Lebanon ,
bringing Secil's stake in this entity to 50.5%. Ciment de Sibline operates an
integrated clinker/cement plant approximately 35 kilometres south of Beirut .
Sibline has an annual production capacity of 1 million tonnes of clinker, and
the company also has a readymixed concrete business which produces 120,000 cubic
metres annually. In June, Secil acquired Minerbetao, a readymixed concrete
producer located in the central region of Portugal , producing annual volumes of
45,000 cubic metres.  Also in June, Secil increased to 57.1% its interest in
Cimentos Madeira, a cement bagging and distribution company with sales of
295,000 tonnes.  CRH's share of the combined incremental sales from these four
transactions amounts to euro 41 million.

Europe Products: euro 68 million

Europe Products completed nine acquisitions at a total cost of euro 68 million
in the first half of the year. The annual incremental sales arising from these
transactions amount to euro 96 million.

Concrete Products

Four transactions were completed by the Concrete Products group in the period,
three in its Structural activities and one in Architectural.

In January, the Concrete Products group acquired Cinor, a French manufacturer of
load-bearing walls and of reinforced and prestressed concrete beams and columns
with annual sales of euro 13 million.  Cinor operates a production facility near
Strasbourg , close to the French/German border, and is a good strategic fit with
the group's existing structural products businesses in France and the Benelux .

In March, structural products activities were further strengthened with the
acquisition of Dalton , the Danish market leader in concrete stairs and
balconies. With annual sales of approximately euro 30 million, Dalton
complements CRH's existing Betonelement business in Denmark , extending the
product range and providing opportunities for operating synergies.

In April, CRH exercised its option to acquire the remaining 75% of former joint
venture Ergon Poland in which a 25% stake had been acquired when CRH purchased
the Ergon Group in Belgium in June 2004.   The buyout of this business, which
has annual sales of approximately euro 16 million, facilitates the integration
of CRH's structural concrete operations in Poland .

Also in April, the architectural products business acquired Anderton Concrete
Products, a regional market leader in precast concrete fencing products in the
northwest of England , and a leading UK supplier of specialist small element
concrete troughs for the utilities sector.  Anderton is an excellent geographic
fit with Supreme Concrete, acquired in April 2006, adding annual sales of euro
15 million.

Building Products

Further progress in developing the Construction Accessories platform in Europe
was achieved during the first six months of 2007 with the completion of three
acquisitions adding annual sales of euro 15 million.

Plastybeton, a leading Italian manufacturer and distributor of plastic spacers
and formwork accessories with one location near Venice , was acquired in March.
In May, CRH acquired Halfen-Frimeda, a Norwegian metal-based construction
accessories distributor. These two transactions were followed in June by the
purchase of Sodeco, a French manufacturer and distributor of magnetic
accessories products for the construction industry based at Clermont-Ferrand
near Lyon. All three acquired businesses have important market positions and
represent excellent geographic and product add-ons for the Construction
Accessories group's growing network throughout Europe .

The Fencing & Security business was strengthened with the acquisition of
businesses in Sweden and France which have combined annual sales of euro 11
million. In March, the group entered the attractive Scandinavian market with the
acquisition of Tuvan Stangsel, a leading Swedish distributor of fencing,
gates, outdoor security and access control systems. OREP, a specialist provider
of perimeter fence detection systems in France , was acquired in early May.

Europe Distribution: euro 73 million

Europe Distribution completed four transactions during the first half of 2007 in
France, the Netherlands, Spain and Germany adding a total of 37 builders
merchants branches and 22 DIY outlets to its existing network with annual
incremental sales of euro 143 million.

In January, the Distribution group acquired LDP, a French builders merchant
operating 17 branches in the Normandy region. LDP has annual sales of euro 43
million, and provides a new base for expansion in Normandy , which is directly
adjacent to Ile-de-France where CRH has a significant existing network of
builders merchants.

The Vlutters group in the Netherlands was acquired in March, adding four
locations which focus on the distribution of flat roofing materials.  Vlutters,
with annual sales of approximately euro 16 million, represents a good geographic
fit with CRH's existing network of 15 specialist roofing branches.

In June, the Distribution group made its first entry into Spain with the
acquisition of a 60% interest in Jelf Brico-House, which operates 9 DIY stores
in the Alicante-Valencia coastal region of southeast Spain .  Jelf's business
strategy is similar to that of Max-Mat in Portugal , in which CRH has a 50%
joint venture stake, and we believe this acquisition will form a platform for
further growth, both by greenfielding and acquisition, in the large, but still
fragmented, Spanish DIY market.  Annual sales of Jelf amount to euro 10 million.

In February, Bauking, the German builders merchant and DIY operator in which CRH
acquired a 47.8% joint venture interest in December 2005, acquired Mobau
Modernes Bauer.  Mobau is the leading regional player in the southern part of
North-Rhine-Westphalia, operating 16 general merchants and 13 DIY stores.  This
acquisition,  which has annual sales of euro 155 million (100%),  is very much
in keeping with the CRH/Bauking strategy of adding small to mid-sized regional
businesses in areas adjacent to Bauking's existing locations.   The enlarged
Bauking business now comprises a network of 79 builders merchants and 53 DIY
outlets.

Americas Materials: euro 24 million

The Americas Materials Division completed four acquisitions in the first half of
2007 at a combined cost of US$ 32 million (euro 24 million). The annual
incremental sales arising from these transactions amount to US$ 46 million.

In April, the Shelly group concluded the acquisition of the asphalt assets of
Kenmore Construction Company, a privately-owned business based in Cleveland ,
Ohio .   Kenmore produces 1 million tons of asphalt annually most of which is
sold externally.  The acquisition, which adds incremental sales of approximately
US$ 33 million, strengthens Shelly's existing integrated aggregates and asphalt
presence in the northeast Ohio market and expands its third-party materials
supply business.

Three smaller bolt-on acquisitions were also completed during the period adding
incremental sales of US$ 7 million.  The Industrial Materials group within the
Central region acquired Rock It Stone in January. The company operates a
crushing facility adjacent to an existing CRH high calcium quarry in Virginia .
The additional crushing capacity provided by Rock It Stone will allow the
Industrial Minerals group to pursue larger volume contracts in the region. In
April, the Rocky Mountain group which is part of the West region acquired the
assets of Big Sky Asphalt in Sheridan , Wyoming , enhancing its existing
operations in the region.  Also in the West, Staker Parson acquired three
readymixed concrete plants in southern Utah with the purchase of selected assets
of Kaneco Products.

Americas Products: euro 175 million

Five acquisitions and a buyout transaction were completed in the first half of
2007 at a combined cost of US$ 250 million (euro 175 million) yielding annual
incremental sales of US$ 371 million.

Architectural Products Group (APG)

In January, APG acquired the assets of Valley Block, a manufacturer of concrete
masonry block and manholes located northwest of Chicago .  Valley has been
integrated into APG's existing Northfield business.

APG acquired two masonry distribution businesses in Florida .  Coloroc
Materials, based in Tampa , was acquired in February and Harwood Brick based in
Gainesville , was acquired in June.  These two acquisitions provide further
access to the independent masonry contractor customer segment and are a
complementary fit with APG's existing operations in Florida .

In May, APG acquired Pre-Blend Products, a dry specialty cement and concrete
repair products manufacturing company based near Trenton , New Jersey .
Pre-Blend, which has been integrated into APG's Bonsal American operations,
provides specialty blending capacity in the Northeast US .

The combined incremental sales from these four bolt-on acquisitions amount to
US$ 48 million.

In June, APG acquired the remaining 20% interest in Custom Surfaces, a
fabricator and installer of marble, granite and solid surface countertops in
Georgia and South Carolina in which an initial 80% stake was acquired in March
2004.

Glass Group

At the end of June, the Glass Group acquired the Vistawall Group for a total
consideration of US$ 190 million. With annual sales of US$ 323 million,
Vistawall is a leading vertically-integrated manufacturer of a broad range of
architectural aluminium glazing systems, including storefront systems, curtain
wall, glass skylights, translucent roof and wall systems and operable windows.
The acquisition provides scale and critical mass for Glass Group's growth
strategy to assemble a unique product and service bundle of architectural glass
and architectural aluminium glazing systems. Vistawall's main manufacturing
facility and headquarters are in Terrell , Texas .  In addition, the group has
six regional facilities located in Greeneville (Tennessee), Newnan (Georgia),
Warwick (Rhode Island), Modesto (California),  Wausau (Wisconsin), and
Bloomsburg (Pennsylvania) together with a total of 19 service centres throughout
the United States, which give Vistawall a national footprint with sales in all
50 states.

Americas Distribution: euro 5 million

The Americas Distribution group (Allied Building Products) completed two
acquisitions in California in April adding annual incremental sales of US$ 22
million. Spartan Supply is based in west Los Angeles and focuses on the
distribution of roofing products. The John Ray Company is a roofing/drywall
distributor serving the Stockton market in northern California . Both businesses
are primarily focussed on the residential re-roof market. The combined cost of
the acquisitions, both of which are single-branch businesses serving the roofing
and siding sector, was US$ 6 million (euro 5 million).



                               *   *   *   *   *



      CRH plc, Belgard Castle , Clondalkin, Dublin 22, Ireland   TELEPHONE
                       +353.1.4041000  FAX [phone]

   E-MAIL [e-mail] WEBSITE www.crh.com  Registered Office, 42 Fitzwilliam
                           Square , Dublin 2, Ireland





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