Acquisition, etc

McINERNEY HOLDINGS PLC
19 August 1999

                              McINERNEY HOLDINGS PLC
                ACQUISITION OF WILLIAM HARGREAVES HOLDINGS LIMITED

McInerney Holdings plc ('McInerney' or 'the Group') is pleased to announce
that it has entered into an agreement to acquire William Hargreaves Holdings
Limited and its subsidiary companies ('the WHL Group' 'the Company') with
effect from   August 1999.

Based in Bolton, the WHL Group is a long established Lancashire company whose
principal activities are house-building, commercial property development and
general contracting.

WHL Group's house-building, commercial property development and general
contracting activities represent a good fit with those of McInerney. 
Subsequent to the completion of the acquisition, McInerney intends to
primarily develop the house-building activities and re-establish the Company
as a significant regional house-builder. McInerney now believe the time is
right to enter the UK Construction market in a measured way. WHL represents a
low capital cost means to achieve this goal with turnaround potential. 

For some time the WHL Group has been seeking a strategic partner to enable it
to develop and grow to an appropriate critical mass. Prior to entering into
acquisition arrangements McInerney has worked alongside the management of the
WHL Group to review its balance sheet, resulting in the adjustments detailed
below, strengthen its banking and financial arrangements and streamline its
financial controls. 

The WHL Group reported a loss of Stg£1,706,956 (E2,599,293) before an
exceptional share premium write off for the year ended 31 December 1998. This
loss was primarily due to a prudent appraisal of the value of lands held and
work in progress levels which resulted in a write down of these balances by
Stg£696,676 (E1,060,874). In addition Stg£551,944(E840,481) in non-recurring
costs were also incurred in 1998. The WHL Group had a net deficit of
Stg£601,458 (E915,879) at the 31st December 1998 and net debt of Stg£5,750,983
(E8,757,397). 
 
The WHL Group has recently secured two significant construction contracts in
the Bolton area.  It has a current order book of Stg£15.98m (E24.33m) and has
a strong level of enquiries for further contracting work.  It is in the final
stages of negotiating two land purchases to strengthen its housing development
activities.

Since 1996 the company has a 50% holding in The Riverside Business Park, a
joint venture established to develop a major inner city regeneration site in
Bolton.  This project involves demand-led development of a business park with
office and industrial units.  To date about half of this development has been
completed.  The Company is remunerated both as contractor and developer in
this instance and this joint venture is expected to be a significant source of
earnings for the WHL Group going forward. Their partner in this joint venture
is a significant UK company involved in construction and property development.

The consideration for the acquisition is Stg£750,000 (E1,142,074) which is
payable as follows:-
*  Stg£375,000 (E571,037) is payable in cash on completion;  and
*  Stg£375,000 (E571,037) is payable through the issue by McInerney of loan
   notes on completion which can be encashed no earlier than the first
   anniversary of completion.

Additional consideration of up to a maximum of Stg£850,000 (E1,294,350) may
become payable by McInerney depending on the consolidated profit before tax
achieved by the WHL Group in each of the four years ending 30th June 2003.  

The impact of the acquisition on McInerney's cash flows will be substantially
lower than the acquisition consideration as there are tax allowances available
to be carried forward in the WHL Group.

McInerney has also agreed to make a non interest-bearing loan of up to
Stg£600,000 (E913,659) available to the WHL Group to reduce its bank debt and
for general working capital requirements.

In addition, McInerney has agreed to provide up to Stg£2.15 million (E3.27m)
over a three year period by way of an interest bearing development loan to the
WHL Group to enable it to fund development opportunities in the greater
Manchester area.  The draw down of this loan is subject to the approval of
specific development projects by the McInerney Board in line with the criteria
developed for the allocation of Group capital.