Trading Update

Kier Group PLC
19 July 2001

                        Kier Group plc
                       Trading Update
                    Year to 30 June 2001
                              
Kier  Group plc, the contracting, house-building and
services group,  is pleased to provide the following update
to  current trading in advance of its announcement of the
results for  the year  ended 30 June 2001, presently
scheduled for 19 September 2001.

Current Trading

The Board is pleased to confirm that the year to June 2001
has been  another  highly successful year, continuing  the
strong trend of profit improvement.  For the last nine years
now,  in both  good  times and bad, Kier has increased pre-
tax  profits and earnings per ordinary share.

In  construction,  the  markets are  providing  us  with
many opportunities  which  have  resulted  in  further
growth in turnover   and   market  share.  Furthermore, the
strategy announced in 1999 to double the construction
operating margins by 2001 remains on target.

The house-building division has had yet another excellent
year building on the increased investment of the past few
years. This  has resulted in completions increasing from
last year's 573 to 733 this year.

The  services  side of our business continues  to  grow.
The major   outsourcing  contract  with  the  London
Borough of Islington under the Government's 'best value' programme,
which commenced  in  November  2000, gives confidence  in
this  new market and further opportunities are being pursued.

Overall, 2001 has proved to be yet another year of significant 
achievement for the Group.

Our markets remain stable and there is a lot of confidence
in all  of the businesses that progress will continue in
2002 and beyond.

Share price

The  Board  of  Kier  has  noted the recent  movement  in
the company's  share price.  The Board has reason to believe
that this   marked   downward  movement  has  been
influenced by unattributed  market  comment suggesting  that  
Kier  will be materially   adversely   effected  by   the   
liquidation of Independent Insurance Group PLC ('Independent').

Kier  has insurance policies in place in respect of cover
for its assets and liabilities with a programme of major
insurers. Independent  was one of those insurers.  The  use
of  diverse sources   of  insurance  cover  means  that
Kier's  financial exposure arising from Independent's
failure is not material.

                              
Enquiries:
Colin Busby         Chairman, Kier Group     01767 640111
Caroline Sturdy     Bell Pottinger Financial 020 7353 9203