Trading Statement

Keller Group PLC
14 October 2005





For immediate release                                    Friday, 14 October 2005


                                Keller Group plc
                         Trading Update and Acquisition

Keller Group plc ('Keller' or 'the Group'), the international ground engineering
specialist, is today providing a trading update for the year ending 31 December
2005 and announcing the completion of an acquisition in the US.

Trading Update

Since reporting strong interim results, all four US businesses have continued to
exceed our expectations in the first three months of the second half which,
together with a continuing strong order book, leads the Board to believe that
2005 will be an outstanding year for Keller, with results above current market
expectations. It is now expected that Group turnover for the full year will be
around £700m, with a record operating margin.

The current year has seen very strong market conditions in the US together with
an excellent performance on a number of contracts. Whilst it is too early to
gauge the trading outlook for next year, it is unlikely that this year's
exceptional trading result will be repeated in 2006. Nevertheless, the Board
believes that 2006 will be another good year for Keller.

US Acquisition

The Group has acquired the business and assets of G. Donaldson Construction
Company Inc. ('Donaldson') of Cumberland, Rhode Island. Donaldson is a ground
engineering contractor, which specialises in deep foundation and earth support
services, serving the New England construction market.

The total consideration for Donaldson comprises an initial amount of $10.5m
(£6.0m), including the assumption of debt, together with an earn-out based on
future profits. Donaldson is expected to report annual sales of around $40m
(£22.7m) in 2005.

Hayward Baker's Boston office will be integrated with the Donaldson operation,
which will be managed as a division of Hayward Baker.

The acquisition represents an excellent strategic fit with our existing US
businesses and will enable us to grow our product mix in the New England market,
where historically the Group has been under-represented.

Once again, this demonstrates Keller's ability to source and deliver
complementary, bolt-on acquisitions which enhance shareholder value. Together
with the development of our existing businesses, this reflects our strategy of
delivering continued long-term growth within our core competence of specialist
ground engineering.

Keller intends to release a pre-close statement on 5 January 2006.

Commenting on the acquisition and current trading, Justin Atkinson, Chief
Executive of Keller, said:

'We are pleased to have completed the purchase of Donaldson, which represents an
excellent strategic fit with our existing US businesses and will enable us to
grow our product mix in the New England market.

'2005 will be an outstanding year for Keller, reflecting very strong market
conditions in the US together with an excellent performance on a number of
contracts. The Board believes that 2006 will be another good year for Keller.'

For further information, please contact:

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

Smithfield                                             020 7390 4600
Reg Hoare/Rupert Trefgarne



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