Chairman Statement, AGM 2000

Kingspan Group PLC
25 May 2000


Kingspan, by any measure, has delivered superior returns over the past five
years - earnings per share has grown by an average of 58% per annum over that
period, net profit before tax grew from Euro 7.7m to Euro 58.7m while turnover
grew from Euro 106m to Euro 533m.  This was achieved in a carefully controlled
manner through a mix of strategic and timely acquisitions and sustained
organic growth.  Prudent financial control has allowed this growth to occur
with little recourse to shareholders and still maintaining interest cover at
10.7 times in 1999.

The Kingspan strategy going forward is clear - we will remain focused on a
range of building products that targets the same market sectors in which we
currently operate.  We have a well- balanced portfolio of products with
substantial growth potential - Raised Access Floors, Composite Panels,
Environmental Containers, Steel Components and Rigid Insulation.  We have
concentrated on products which are highly specified by architects and
structural engineers and we have looked for and achieved leadership positions
in these products on a selective regional basis.  We have put in place a
product portfolio to meet a marketplace which is increasingly aware of the
more stringent building and environmental issues such as use of energy in
buildings, waste treatment, and water recycling.  We operate in markets which
are converting to Kingspan branded products driven by the more stringent
environmental requirements of investors wishing to reduce the running costs
over the lifetime of a building.  Through focused marketing, Kingspan has
driven and continues to drive these conversion issues home to building owners
and specifers.  Through investment in all of our manufacturing plants we have
driven unit costs down and strive to deliver service to customers beyond
expectations.

Kingspan has demonstrated strong acquisition and integration skills.  We made
16 acquisitions in the past five years, all of which were successful.  The
most significant last year was Hewetson, which was completed in January 1999
followed by the acquisition of Durabella, its largest competitor, in October
1999.  Capital investment amounting to some Euro 6m is almost complete to
consolidate the production of the enlarged raised access floor business at the
Hewetson site at Hull.

Other investment programmes underway for 2000 involve the installation of
another composite panel line in the UK at our Sherburn plant at a cost of Euro
5m and the installation of a plant near Poznan in Poland for the manufacture
of environmental containers for the Central European and German markets at a
cost of Euro 4m.

The Group continues to use its technology to develop new products and improve
the performance of existing products.  Next year will see investment by
Kingspan in another composite panel line in the UK to cope with demand for
existing and new products.

This year has started well.  Volumes in Quarter one on budget.  Overall
performance is on plan and I expect the first six months to meet expectations.
As I said in my Statement in the Annual Report, we expect a good outcome for
the year as a whole with profits growth weighted more towards the second half.