Acquisition

Kier Group PLC
26 November 2002


                  Kier expands its partnerships homes business

Kier Group plc has acquired 100% of Partnerships First Limited, the partnership
homes subsidiary of Belan Limited, in exchange for its 49% stake in Belan
Limited and no further consideration. The acquired business will combine with
Kier's existing social housing business to form Kier Partnership Homes and will
benefit from the Group's support and well-established procedures. Kier
Partnership Homes has a projected annual turnover of around £70m and will
operate from four offices in Dorking, Bristol, Aldridge near Birmingham and
Southampton.

                                    - ENDS -

Enquiries:

Deena Mattar
Finance Director
Kier Group plc                               Tel: [phone]

Caroline Sturdy
Associate Director                           Tel: [phone]
Bell Pottinger Financial



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