Re: Chairman's Statement

Kingspan Group PLC
30 May 2003



Kingspan Group plc



Chairman's Statement at Annual General Meeting



Friday 30th May 2003





The Board is pleased to report that sales in the first four months of 2003 have
been ahead of the corresponding period in 2002 in mixed market conditions.



In Britain demand for insulated panels is showing growth overall, driven by a
renewed increase in the conversion of the cladding market to insulated panels.
Insulated panel sales are also showing growth in Ireland and Central Europe
while more difficult market conditions pertain in our Western European markets.
The need for additional capacity has been identified and a new insulated panel
line will be commissioned by mid 2004.



The Group is experiencing strong demand for its insulation boards in all of its
markets, putting pressure on capacity in the short term.  This, however, had
been anticipated and substantive new capacity is currently being installed and
will be commissioned in quarter 3 this year.



The Environmental Containers business continues to put in a good performance in
its main product sectors.



Access floors remain weak in volume and margins in the Group's main UK and US
markets, but should be in line with market expectations.



There is also some pressure on operating margins, particularly in the area of
structural products in the UK and insulated panels in Western Europe.



The weakness of the dollar and pound sterling against the Group's reporting
currency, the Euro will have some negative effect at the earnings level but the
worst effects of this are offset through internal hedging.



Overall, trading so far this year indicates a satisfactory outcome for 2003.







This announcement has been issued through the Companies Announcement Service of

                            The Irish Stock Exchange












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