AGM Statement

Kier Group PLC
02 December 2002



                                 KIER GROUP plc

                                 AGM STATEMENT

Kier Group plc, the major construction, support services, housebuilding and
property group, held its Annual General Meeting at the Group's head office at
Sandy, Bedfordshire on Saturday, 30 November at 11.00am.

Commenting to shareholders on the strong performance achieved by Kier Group plc
in its financial year to 30 June 2002, Colin Busby, Chairman and Chief
Executive, went on to say that prospects in all of Kier's markets were
encouraging and that the Group had made a good start to the new financial year.

He made the following comments:

"Kier's resilient financial performance continues to reflect the conservatism
and prudence applied in both accounting and risk management. Last year we
reported our tenth successive year of continuous growth, a record that would be
unsustainable without the long-term, cautious approach taken in managing the
business.

"Kier's Construction & Support Services businesses in the UK have a greater
workload of higher quality than at any time in the past with market sectors such
as retail, health and education more than compensating for a cooling in the
commercial sector. We are hopeful of securing the £640m outsourcing contract for
the building maintenance and repairs service for Sheffield City Council on which
we recently announced our selection as preferred bidder, which will bolster our
order book further.

"The programme to continue improving the overall Construction & Services margin
is being sustained. Internationally the return to profitability was achieved
last year and the business continues its healthy performance. It will contribute
strongly to the overall Construction performance in the Group.

"The private Housing business has made an excellent start to the year due to the
continued strong demand for new homes in all the areas in which Kier operates.
Both completions and current forward order book are significantly ahead of last
year, together securing over 70% of our projected unit sales for the current
year. Demand for new houses continues to outstrip supply and affordability
remains good, factors which, we believe, bode well for the industry in the
longer term.

"In Property good progress is being made on the development opportunity at
Whitehall and our joint venture with the Bank of Scotland is proving to be a
sound investment.

"In respect of PFI, the Group's Infrastructure Investment team was successful in
achieving financial close on Greenwich Carehomes. PFI will continue to provide
opportunities for the future, however our approach to the process will remain a
cautious one particularly whilst bidding costs remain high.

"In line with our plans to continue to grow our business I am pleased to
announce that we will be strengthening the Board from 1 January 2003 with two
new appointments. Dick Side, Managing Director of Kier Regional, will become the
main Board director responsible for the Regional construction division and Dick
Simkin, Managing Director of Kier Property, will be the main Board Director
responsible for the property division. Both have a wealth of experience in their
respective sectors and many years' service with Kier Group . I wish them well in
their new roles.

"With our key businesses moving forward and prospects remaining good in our
markets, we expect your Group to continue its progress during 2002/3."





Enquiries to:

Colin Busby, Chairman Kier Group plc Tel: [phone]

Caroline Sturdy/Bella Jowett Bell Pottinger Financial Tel: [phone]


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