Trading Statement

Kingspan Group PLC
05 January 2006

                               KINGSPAN GROUP PLC



                                 Trading Update



Kingspan Group Plc ('Kingspan' or the 'Group'), a leading manufacturer of an
integrated range of products for the construction industry today, January 5th
2006, announces the following trading update in advance of its preliminary
results for the 12 months ended 31 December 2005 which will be announced on
Monday 6th March 2006.



Kingspan achieved strong revenue growth in the first half of 2005, which has
continued through the second half.  Volume growth has been satisfactory and raw
material prices and supply have stabilised. Satisfactory operating margins have
been maintained in the period.



Operating profit and earnings growth for the year will both be significantly
ahead of prior year and in line with current market expectations.  Net debt at
year end is expected to be approximately €180m, after €45m in capital
expenditure and acquisition spend of €140m.



Some of the acquisition investment in the year was with a view to gaining an
increased position in the UK residential sector which is expected to show
improvement over the medium term.  These acquisitions should also enable the
Group to benefit from changes in construction methods from more traditional
solutions. The Group's Insulated Panel and Board businesses also continue to
benefit from shifting construction practices.  Most recently the Group has
entered a joint venture with Recticel S.A. into which both parties have
contributed their two small industrial insulation manufacturing businesses.  The
estimated sales of the joint venture will be around €35mn in 2006.



Whilst we are cognisant of weaker conditions in the construction sector and
lower economic growth estimates generally for the UK, Kingspan does not expect
these factors to have a significant impact on our overall business.  The present
activity pipeline points toward a positive start to 2006.  Ireland continues to
perform well across all product groups, the US is steady, and quarter four
activity in Central and Eastern European markets improved significantly.  April
1 2006 is the date from which the new UK Building Regulations will become
effective.  Their impact, together with the many other current initiatives
across the Group, provides a platform for continued growth in 2006.

For further information please contact:
Murray Consultants                              [phone]
James Dunny                                     [phone]

Buchanan Communications
Tim Thompson / Jeremy Garcia                    [phone]




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