Acquisition

Kier Group PLC
13 June 2005


                                                                    13 June 2005


                                KIER GROUP PLC

                    ACQUISITION OF ASHWOOD HOMES FOR £23.5M


Kier Group plc, the major construction, support services, homes and property
group announces that it has acquired the business of Ashwood Homes, a regional
housebuilder operating in Lincolnshire and North Cambridgeshire.

Allison Homes Eastern and Twigden Homes (subsidiaries of Kier Group) have
acquired land, work in progress and related assets from Ashwood Homes (Holbeach)
Limited for £23.5m in cash, representing the value of these assets. £15.0m has
been paid on completion of the transaction with £8.5m deferred until March 2006.
The acquisition is being funded from Kier's cash balances and banking
facilities.

389 plots have been acquired with planning consent and will be integrated into
Allison Homes' and Twigden Homes' operations under their respective management
teams.

John Dodds, Chief Executive of Kier Group, said:

"This transaction, which is part of our ongoing strategy to expand and
strengthen the residential division, has provided us with a good opportunity to
acquire land off market in areas in which we are currently operating and will
provide a return on our investment immediately. It is similar in nature to the
Tudor Homes transaction completed last year which has proved to be very
successful."

                                    - ENDS -


For further information, please contact:

John Dodds, Chief Executive
Kier Group plc                         Tel: [phone]

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

Caroline Sturdy
Madano Partnership                     Tel: [phone]






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