Acquisition of Raised Access Flooring Business

KINGSPAN GROUP PLC
15 October 1999

                              Kingspan Group plc                              
                Acquisition of raised access flooring business                


Flooring Services Group Limited ('FSG'), a wholly owned subsidiary of Kingspan
Group plc ('Kingspan'), has today acquired the raised access flooring business
of The Phoenix Timber Group PLC, a UK based company, for a total consideration
of Stg#4,840,000 payable in cash on completion.  The consideration is subject
to adjustment on a pound for pound basis by reference to the amount by which
the value of stock at completion is more or less than Stg#1,100,000; this
adjustment is not expected to exceed Stg#400,000.  The consideration will be
funded from Kingspan's existing cash resources.  

The business being acquired, which previously operated as Durabella Limited
within Phoenix Timber Group, manufactures and supplies a well known range of
metal-faced raised access floor systems.  These systems are widely used in
office developments for the distribution of building services via the floor
void.  The business is based in Kenilworth, Warwickshire.  FSG will shortly
change its name to Durabella System Floors Limited.  Durabella Limited will
complete current work in progress.

Durabella Limited recorded sales for the year ended 31st March 1999 of
Stg#22,557,000 and net profit before tax of Stg#279,000.  Net assets being
acquired are Stg#1,840,000 and goodwill on acquisition is estimated at Stg#3
million.  

Kingspan has a strong global presence in the building products sector,
particularly with insulated cladding components for the building envelope. 
This latest access flooring acquisition is complementary to the Kingspan
raised access flooring product range.  Kingspan is confident that the
Durabella business will benefit from the strengths of its new parent company.


For further information, contact:

Dermot Mulvihill                                  [phone]
Group Finance Director