Trading Statement

Keller Group PLC
24 June 2004


For immediate release                                     Thursday, 24 June 2004

                                Keller Group plc
                          Half Year Trading Statement

Overview

Keller Group plc ('Keller' or 'the Group'), the international ground engineering
specialist, is today announcing a trading update for the six months ending 30
June 2004, in advance of its Annual General Meeting, to be held tomorrow and
prior to hosting a presentation for analysts later today.

As indicated at the time of the announcement of Keller's 2003 results in March
2004, the current year started somewhat slowly, although trading has improved in
the second quarter.

The Board expects the Group's overall performance for the half year to be in
line with its expectations at the time of the 2003 preliminary results
announcement. As expected, the results will reflect a net adverse impact from
exchange rate fluctuations of around £1m.

The current order book remains good, representing around four months' sales. As
previously indicated, the results for the full year are likely to be more
second-half weighted than in 2003, consistent with earlier years.

Divisional Review

In the US, Case and McKinney have both had a good first half and are well placed
for the remainder of the year. Hayward Baker started the year more slowly,
although activity and orders have picked up in the second quarter. Suncoast
successfully implemented price increases in the first quarter, which, together
with significantly increased volumes and operating cost efficiencies, have
combined to restore margins.

The Continental Europe & Overseas business generally has had another good half
year, despite continued weakness in Germany, and in Portugal where actions have
been taken to reduce costs. In Spain, Keller-Terra has reported another strong
performance, whilst operations in Austria, Italy and Poland have all contributed
good results. The Middle East and Far East have performed satisfactorily, with
good productivity on the Dubai Palm Island contract and another strong
contribution from Malaysia.

In the UK, the result of Makers has been affected by losses on a small number of
old contracts in discontinued areas, which are in the process of being run off.
However, the underlying performance of the business has improved in the second
quarter and the Board continues to expect Makers to return to profitability
during the course of 2004. Keller Ground Engineering is expected to contribute a
half-year result broadly in line with last year.

The Group's Australian businesses have performed well and further progress has
been made in developing the ground engineering subsidiary established last year.



Keller intends to announce its interim results on 23 August 2004.


Commenting on the half-year trading update, Justin Atkinson, Chief Executive of
Keller, said:

'The Board expects the Group's overall performance for the half year to be in
line with its expectations at the time of the 2003 preliminary results
announcement.

'The current order book remains good, representing around four months' sales. As
previously indicated, the results for the full year are likely to be more
second-half weighted than in 2003, consistent with earlier years.'



For further information, please contact:

Keller Group plc
Justin Atkinson, Chief Executive                         020 8341 6424
James Hind, Finance Director


Smithfield                                               020 7390 4600
                                                         07831 406 117
Reg Hoare
Rupert Trefgarne


Visit the new Keller website at www.keller.co.uk



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