AGM Statement

Mears Group PLC
07 June 2006


MEARS GROUP PLC

7 June 2006

AGM Statement


At the company's Annual General Meeting to be held at 12.00 p.m. today, Bob
Holt, Chairman, will issue the following statement:

'I am pleased to report a strong performance for the first four months of 2006
with continuing buoyant trading conditions. Present indications are that our
results will be at the top end of this year's market expectations.

Acquisition of Laidlaw Scott Limited

We have today completed the acquisition of Laidlaw Scott Limited. The Company,
which operates almost exclusively as a social housing repairs and maintenance
provider, is based in Glasgow and has customers throughout Scotland. An initial
consideration of £2.1m has been paid in cash with up to a further £2.9m due
depending upon the profit achieved in the next 18 months. In the year to 31
August 2005 Laidlaw Scott Limited generated £0.4m profit before tax on turnover
of £6.0m. The Company had net assets at 31 August 2005 of £0.4m and was largely
debt free. Based on our current estimates we are confident that this transaction
will be earnings enhancing. I am delighted that we have found such a good
business to spearhead our entry into the growing Scottish market.

Decent Homes work from Ealing Homes

When we announced our record results in March of this year we highlighted the
significant contract gains we had made. In addition we have been notified that
we can expect to be confirmed as one of a select number of framework partners to
deliver the Decent Homes programme for Ealing Homes, the Arms Length Management
Organisation (ALMO) of London Borough of Ealing. This is subject to final board
ratification where we expect a positive outcome.

The Decent Homes programme covers a wide range of planned maintenance works to
the ALMO's stock of nearly 14,000 homes. The works will include kitchens,
bathrooms, heating, roofing, insulation, doors/windows and decorations. Ealing
Homes plan to invest over £360 million in the programme. We already provide over
half the ALMO's repairs and maintenance service and were instrumental in
supporting Ealing Homes in achieving their two star rating.

The size of the bid pipeline for contract tenders remains extremely healthy and
we have maintained our current order book at in excess of £1 billion.

Outlook

We continue to target customers who share our view of long term partnering and
to avoid securing turnover at margins which will compromise quality and cash.
The Laidlaw Scott acquisition and recent senior appointments in the bid team
business development, marketing, HR and IT are driving forward initiatives which
will underpin our continued profitable growth.

We are delighted with progress during the first four months of the year. Given
the scale of our order book and current opportunity pipeline we are confident
that yet again we are on course for another year of outstanding performance.
Your Company is in terrific shape and I am committed to taking Mears to new
levels of excellence and playing a crucial role in creating better communities.'


Bob Holt
Chairman


Press Contacts:

Bob Holt (Chairman)                                   Tel: [phone]

Stuart J Black (CEO)                                  Tel: [phone]

David J Robertson (FD)                                Tel: [phone]

Trevor Bass/Alex White (WSSM)                         Tel: [phone]


NOTES TO EDITORS:

•   Mears Group PLC is the leading provider of a range of services to
    social landlords.

•   The services provided include response maintenance, void refurbishment, 
    planned preventative maintenance, improvements to meet the 'Decent Homes 
    Standard' and estate management.

•   Profits have shown an annual compound growth rate of 42% since Mears was 
    listed on the Alternative Investment Market (AIM) in October 1996. The Group
    was awarded the AIM Company of the year award in 2003.

•   The Mears mission is to be the market leader in transforming the social 
    housing environment, improving homes, improving neighbourhoods and 
    improving lives.


Further information is available on our website www.mearsgroup.co.uk





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