Trading Statement

Kingspan Group PLC
12 January 2005


Final Release                                                    12 January 2005

                               Kingspan Group PLC
                                 Trading Update


Kingspan Group Plc ('Kingspan' or the 'Company'), a major manufacturer of an
integrated range of products for the construction industry, today announces the
following trading update in advance of its preliminary results for the 12 months
ending 31 December 2004 which will be announced on Tuesday 8 March 2005.


2004 Overview

Kingspan achieved 15.5% Sales growth in the first half of the 2004 and has seen
this momentum continue into the second half with some further price inflation.
As a result the Company expect full year sales to be up over 18% on 2003.

EBITA margin is ahead of the 10.1% achieved in 2003 and should be in line with
the consensus expectation of 10.7%.

Kingspan expect full year after tax earnings to be in the region of 30% up on
2003, ahead of current market expectations.

Net debt at the year end is expected to be approximately €110 to €112mn compared
to €121mn at the end of 2003. This includes the receipt of $36mn in relation to
Tate Arbitration proceeds. Capital expenditure in 2004 was approximately €60mn
and the Company spent some €20mn on bolt-on acquisitions, most notably €15mn on
Apco, a Panel business based in Belgium.

Sales in the Panel, Insulation and Structural & Offsite divisions grew by more
than 20% in 2004. Environmental Container sales are expected to be up over 10%
versus 2003.  Sales of Access Floors in the US have grown very strongly in 2004,
while the rate of decline in Europe has slowed somewhat in the second half.


International Financial Reporting Standards (IFRS)

Under IFRS reporting, the main areas to be impacted are Goodwill, Pensions and
Share options. The Company does not expect these changes to materially impact
earnings before goodwill. Restated Interim 2004 and Full Year 2004 results will
be made available at the time of the Interim 2005 results.


Outlook

The Company expect overall construction market conditions in 2005 to be
reasonably favourable. The benefits of both capital investment and bolt-on
acquisitions during 2004 should impact positively on efficiency and volumes in
the current financial year. Taking into account an element of price inflation,
as well as 2004 acquisitions, the Company expects 2005 sales growth to be at a
similar rate to that achieved in 2004. While some raw material price increases
could put pressure on margins in 2005, Kingspan is confident 2005 will be
another satisfactory year of growth.


For further information please contact:

Murray Consultants
Donnchadh O'Neil                                     Tel: [phone]

Buchanan Communications                              Tel: [phone]
Tim Thompson/Jeremy Garcia/Tom Carroll


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