AGM Statement

Kier Group PLC
28 November 2005

28th November 2005


                                 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, 26 November 2005 at 11.00am.

Commenting to shareholders on the excellent results achieved by Kier Group plc
in its financial year to 30 June 2005, John Dodds, Chief Executive, said that
prospects in Kier's markets were good and that the Group had made a strong start
to the new financial year.

He made the following comments:

"Our Construction businesses have continued their strong performance in the
first quarter of the year. Cash generation has remained good since the financial
year-end with month end balances exceeding those at 30 June 2005. Order books
continue at healthy levels and there remains a strong pipeline of opportunities
supporting our expectations for further growth in turnover this year.

"In Support Services a lengthy bid list is being actively pursued in the local
authority building maintenance sector which will help us to continue to achieve
our challenging growth targets.

"Our Housebuilding business is selling from 18% more outlets than last year.
Demand for our homes has improved and visitor levels are ahead. Our unit
completions and current forward order book, together, are 12% ahead of last
year, securing around 70% of our projected unit sales for the current year and
confirming the position for the half year.

"Good opportunities are being pursued in Property and we have recently received
approval for a new distribution complex at Western International Markets near
Heathrow Airport.

"Our business which invests in the Private Finance Initiative ('PFI') continues
its success with its recent appointment as preferred bidder on the Oldham
Schools project, our fifth education win in PFI.  Our Construction business will
carry out the construction of the £51m project with Kier Managed Services as
service provider over the 25 year term.

"Kier's businesses are in good shape and all of our markets are sound. We
believe that prospects are good for further growth this year and beyond."


                                      Ends

For more information, please contact:

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

Caroline Sturdy
Madano Partnership                                          Tel: [phone]


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