Trading Statement

Kingspan Group PLC
8 February 2002


                       Kingspan Group plc Trading Update

8 February, 2002

Kingspan Group plc ('Kingspan' or 'the Company') expects to announce its results
for the year to 31 December 2001 on 22 March 2002. The board expects results to
be in line with market expectations. The Company also made strong progress on
debt reduction during the second half of 2001, with net debt falling
significantly to approximately €175 million at 31 December 2001.

In the last few weeks a trend has developed in the U.S raised access floor
market which if it continues could significantly affect the performance of the
Company's U.S. subsidiary, Tate Global Corporation ('Tate'). One of Tate's main
competitors has won a number of long-term projects at prices that Tate believes
are unsustainable. Tate had been confident of winning these projects, which were
Tate specifications, in 2002. Kingspan has taken the view that these projects
will not be easily replaced in the current commercial office environment in the
U.S. While this is a very recent phenomenon, were this trend to continue over
the rest of the year, operating results at Tate would be reduced by
approximately €15 million against previous expectations.

In the meantime Tate has recently launched a major marketing initiative with a
view to converting a substantial part of the commercial office construction
market to raised access floors and to utilise the product in other sectors in a
way that would differentiate Tate from its competitors. The Company expected to
be implementing this strategy in a stable access floor market following the
substantial reduction in surplus stock held by dealers at 30 June 2001.
Nevertheless, Kingspan remains confident of a positive impact in 2003 from this
very comprehensive initiative. The Company also believes that Tate remains the
most cost-efficient operator in this market.


In relation to the acquisition of Tate, the Company wishes to confirm that it
has initiated a binding arbitration procedure against the vendor in relation to
that transaction. The outcome of these proceedings is expected within twelve to
eighteen months.


While it is still very early in the year, the remaining Kingspan businesses are
trading in line with expectations.

For further information, please contact:

Eugene Murtagh           Chairman & Chief Executive            [phone]
Dermot Mulvihill         Finance Director                      [phone]


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