BBC Report

Mears Group PLC
06 July 2007


6 July 2007

Mears Group PLC ('Mears' or the 'Company')

Hackney and Islington Contract - BBC Report

Certain allegations have been made in a BBC 5 Live report regarding the
Company's conduct relating to works carried out for the Family Mosaic Housing
Association in Hackney and Islington ('Family Mosaic').

The Company is taking the allegations seriously. Its own initial investigations
on the matter have shown there to be no substance to the claims made but Mears
welcomes an independent investigation by The Housing Corporation, the sector's
regulator. Mears expects this to be completed in the next few weeks and the
Board is confident of a satisfactory outcome.

Mears conducts over 20,000 jobs per annum on behalf of Family Mosaic, a contract
which began in October 2004. Family Mosaic independently measures Mears'
performance and these measures support Mears' own information showing around 90%
customer satisfaction levels, significantly exceeding sector norms.
Mears' processes for managing jobs through to post inspection are fully audited
both internally and externally.


Enquiries

Mears Group PLC
Bob Holt, Chief Executive 07778 798816
David Robertson, Finance Director 07887 705357

Weber Shandwick Financial
Trevor Bass/Alex White 020 7067 0743

Nominated adviser to Mears
Investec
Michael Ansell 020 7597 5970
Daniel Adams



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