Acquisition

Kier Group PLC
29 March 2004

              KIER DEVELOPMENTS ACQUIRES PROPERTIES FROM SAINSBURY'S


Kier Developments, a joint venture between Kier Group and HBOS, has acquired six
development schemes from Sainsbury's for £32.25m. The properties, a mixture of
industrial, retail and residential, are situated in Chichester, Kingston,
Maidenhead, Sunbury, Sydenham and Lincoln.

The acquisition will be funded out of non-recourse facilities within the joint
venture.

Kier Group Chief Executive, John Dodds commented: "The acquisition, in joint
venture, of Laing Property Developments in 2002 represented a significant
strengthening of our property development business. These additional sites
further enhance our property development portfolio bringing significant future
value to the business."


For further information, please contact:


John Dodds, Chief Executive
Deena Mattar, Finance Director
Kier Group plc                            Tel: [phone]

John Coles
Sarah Landgrebe
Bell Pottinger Corporate & Financial      Tel: [phone]



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