Update on Construction

Galliford Try PLC
01 May 2003

              EMBARGOED UNTIL 07:00 A.M. ON THURSDAY 1ST MAY 2003



                               GALLIFORD TRY PLC



                     RESTRUCTURING OF CONSTRUCTION DIVISION



Following completion of the review of its construction business referred to in
its interim statement of February 2003, Galliford Try plc announces the
restructure of its construction division to deliver sustainable profitability by
concentrating on its core strengths in partnership led contracting and the
public and regulated sectors.



The restructuring has enabled the group to implement significant streamlining
measures, resulting in an overall reduction in the cost base going forward of
£4m per annum and a rationalisation in the division's management structure,
resulting in shorter reporting lines.  The lower cost base incorporates a
reduction in the number of employees by 170 to 1,522.  The cost of the
restructuring process will be within the previously announced provision of £4m.



Galliford Try's main construction operations have been reorganised into three
business units, all re-branded as Galliford Try Construction, to be responsible
for specific market sectors across the country.



North, based in Warrington in Cheshire, will take responsibility for all water
and rail projects throughout the UK reflecting the company's success in becoming
a major framework contractor in these expanding markets.



Central, based at Wolvey in Leicestershire, will be responsible for all national
building framework agreements and PFI projects to capitalise on the
opportunities that our track record is generating.  It will also carry out
building, infrastructure and interiors contracts outside of the south of
England.



South, based in Uxbridge, Middlesex will be responsible in the south of England
for private commercial and interiors work to build upon the company's long term
relationships with blue chip clients, together with public sector building and
other infrastructure projects.  Try Accord's office in East Peckham, Kent, is
being closed.



The group's growing affordable housing business, which last year worked on 2,200
units, will be re-branded Galliford Try Partnerships from Galliford Hodgson,
based in Chelmsford, Essex.



The group's market leading business in providing services nationwide to the
telecommunications industry, and which last year completed 1,000 cell sites for
the mobile phone operators, will be based in Wolvey as Galliford Try
Communications.



Specialist ground engineering contractor, Rock & Alluvium, will continue to
operate as before from Wallington in Surrey.



The future workload for the division remains healthy.  76% of the £663m total
reported in the interim statement has been secured on a value basis, rather than
in pure price competition and 70% is in the public and regulated sectors where
the group is in a good position to obtain an increasing proportion through the
increased use by clients of framework agreements and preferred supplier policies
to deliver best value.



The contractual negotiations with Scottish Water to become part of the delivery
team for their four year £1.8 billion asset delivery project are going well.
Our position as preferred bidder for two PFI projects now worth £32 million in
total for schools in Bedford and health projects in Ealing has been confirmed.



We have recently concluded negotiations and been awarded a contract for a £29m
arts multiplex centre in West Bromwich, adding to our track record for
constructing landmark buildings in the Midlands, following on from the success
of the Millennium Point development that we completed in Birmingham in 2001.




Commenting, David Calverley, Chief Executive said:



'The new structure has strengthened our client focus as a national contractor
and significantly reduced our cost base.  The action taken completes the
restructuring of the construction division to enable it to deliver acceptable
and sustainable profits going forward.'





For further information contact:

David Calverley, Chief Executive                         01895 855219

Frank Nelson, Finance Director:                          01895 855221

Ann marie Wilkinson/James Chandler, Beattie Financial    020 7398 3300


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