Statement re Settlement

Kingspan Group PLC
24 July 2000


Statement by Kingspan Group plc ('Kingspan') in relation to the settlement
with Insurance Corporation of Ireland ('ICI')

A settlement of IR£4.2 million to ICI negotiated in 1993 was paid personally
by Mr. Eugene Murtagh, Chairman of Kingspan & by Mr. Brendan Murtagh, then
Deputy Chairman.

No Kingspan funds were paid out in discharge of this ICI settlement.  In
addition the profits of the project were retained in the Group for the benefit
of all the shareholders.  The settlement was done in such a way that there
could not be any recourse to the Group. This was done so that all concerned
could focus their energies to develop the Group without the distraction of a
long drawn-out court case.  The settlement with ICI was negotiated in 1993 and
discharged in full by 1999.

The settlement related to export credit insurance provided through ICI for an
experimental farm project in Canada.  This insurance was arranged only when
ICI were satisfied that a milk quota was in place in Canada.  This quota had
an estimated value between CAD $5-6 million and a guaranteed income flow to
meet all of the projects financial commitments.  It subsequently turned out
that there were fraudulent representations made to ICI in relation to the milk
quota by the Canadian company.  In fact no such milk quota existed at all. 
These fraudulent representations by the Canadian company were fundamental to
the subsequent failure of the project. 

The Board of Directors was made aware at the time that the settlement with ICI
was discharged personally by Eugene & Brendan Murtagh.

The Company is satisfied that that there are no issues of breaches of
standards on accounting disclosures or corporate governance in connection with
this settlement and this has been relayed to the Stock Exchange.