Acquisition

Kingspan Group PLC
14 March 2005



14 March 2005

   Kingspan Group PLC ('Kingspan') announces acquisition of Century Homes 
                             ('Century')

Kingspan Group is pleased to announce it has entered into an agreement to
acquire 100% of Century Homes. The agreement is conditional, inter alia, on
receipt of Competition Authority approval.

Century is Ireland's leading manufacturer of timber frame houses, operating from
locations in Ireland and Britain.  The acquisition forms part of Kingspan's
ongoing drive to increase the scale and breadth of its product offering within
the off-site construction sector in Britain & Ireland.

Total potential gross consideration is €98m, €91m net of expected cash at
completion, split as follows:

  • Initial gross consideration payable in cash at completion of €74m.
    Century is expected to have cash on completion of €7m, giving net
    consideration of €67m.
  • A further maximum of €24m may be paid under an earn out arrangement over
    the next three years depending on Century achieving substantial growth in
    profits linked to specific targets in each of the years 2005 to 2007
  • The initial net consideration represents 6x 2004 EBITDA

Century had aggregated revenue of €67.1m, operating profits of €9.6m and EBITDA
of €11.2m based on audited accounts for 2004.  It is anticipated that the
business will record further growth in 2005 complemented by the opening of two
additional manufacturing sites.  Net assets are expected to be €28m at
completion.

As part of the agreement, the senior management team of Century will continue
with the business and work alongside the existing Kingspan management team in
developing Kingspan's off-site division  in the UK and Irish off-site
construction market.

This acquisition is expected to be earnings enhancing from the outset.  The
acquisition will be funded in full from existing Kingspan facilities.

Gene Murtagh, Kingspan CEO, comments 'Century represents one of Ireland's most
entrepreneurial and fastest growing companies. Led by Gerry McCaughey, Century
have almost single handedly pioneered Modern Methods of Construction (MMC) in
the Irish, and more recently the UK residential markets. The acquisition, when
combined with Kingspan's existing off-site operations, will vastly enhance
Kingspan's capability to become the leading player in the off-site low energy
home construction market in the UK and Ireland. Gerry McCaughey, CEO of Century
Homes, and the Century team will bring valuable insight and leadership to our
strategy for this sector.

NCB Corporate Finance advised Kingspan on this transaction.

An analyst briefing / shareholder conference call is scheduled to take place at
11.00am this morning.  Please contact Celeste O'Brien at + 353 1 641 9292 or
celeste.o'[e-mail] to access the conference call details before
10.45am. A powerpoint presentation will be available on the Kingspan website
www.kingspan.com from 9.00am.

Note:  Century Homes comprises of three companies, Woodroe Limited, Woodroe
(Ireland) Limited, Woodroe (UK) Limited and their subsidiaries.

For further information contact:

Donnchadh O'Neill: Murray Consultants                      Tel +(353 1) 4980 300
Tim Thompson/Jeremy Garcia/Tom Carroll: 
Buchanan Communications                                   Tel +(44) 207 466 5000

-Ends-


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