AGM Statement

McInerney Holdings PLC
28 June 2002


McInerney Holdings Plc

                                                                 EMBARGO 12 noon


                                                          Friday, 28th June 2002



Chairman's Statement
Annual General Meeting




In 2001, the Group reported a profit before tax of €18.1 million, slightly down
on our 2000 record figure of €19.1 million.  This result constitutes a solid
performance by the Group's established operating divisions in the challenging
global and domestic economic environment of 2001 and I congratulate all
concerned.



An interim dividend of 4.5 cent per share was paid to shareholders in March
based on our 2001 result, in lieu of a final dividend, as is our practice. This
increased dividend represents a more progressive dividend policy by the Group.
The Group now has a strong asset base and consequently, the proportion of
earnings distributed to shareholders will be increased over a period of time to
match our peer group.



It is a pleasure to report that each of our businesses is recording robust
performances, with some 90% of our 2002 sale targets already secured. In
addition, the pattern of deposits secured in Ireland, Spain and the UK all
indicate that the Group can expect a good first half in 2003.



Before commenting on recent developments in each of our divisions, I would like
to draw your attention to a number of specific favourable factors assisting the
Group's business going forward:



•        Demand for housing in Ireland remains strong. The Group expects to
close over 300 unit sales in the first half.  It currently has 583 private
housing deposits on hand, a sizeable increase on the same time last year. These
figures augur well for achieving our budgeted target of constructing and selling
a total of 764 private houses for the full year of 2002 - up from 663 in 2001.



•        The Group's decision to purchase the Charlton Group earlier this year
without recourse to funds from shareholders means that this acquisition will be
earnings enhancing from the outset. Combined with a very positive operating
environment for our products, we view the UK as offering substantial future
earnings potential for the Group. Currently, our UK housebuilding activities
have 257 secured sales, representing around 80% of the UK 2002 target of 325
units.



•        Freehold sales of our premier properties in Marbella are performing
well. The Group's latest freehold development of a total of 250 units at Los
Flamingos is experiencing unique demand. The 2002 target for the first
development phase of 96 apartments is well underway with deposits for 91 of
these units already received. We expect to complete over 30 of these units this
year with the balance to be completed in the first half of 2003. Marketing has
commenced on the next phase of 54 units with initial demand indications very
positive and reservations secured for over 40 apartments. This phase will be
completed end 2003/early 2004 with projected completion of the overall
development by 2006.









                                      -2-



I will now comment on each of our main businesses in turn:



Irish Housing Operations

Well-located first time buyer houses continue to sell strongly. The Group's
decision in 2000 to re-focus purely on the first time buyer segment has proven
to be a correct strategy. The re-introduction of mortgage interest relief for
investors in the December Budget assisted the improvement in market conditions
in the first four months of the year.



UK Operations

Our UK operations have taken significant strides forward over the past year. The
UK housebuilding market has seen significant price rises being achieved and
sustained in recent years. Housebuilding in the North-West region, servicing a
population of 8 million people, has benefited from this buoyant demand. In May,
the Group purchased a number of sites totalling 274 plots in the region, which
takes the current UK controlled land bank to 800 units.



Spanish Operations

The Spanish operations made further progress over the past year. Strong rental
demand continues to improve operating profits at Four Seasons Country Club,
Marbella. The successful freehold development of 72 apartments at Carib Playa
near Marbella is now complete. As stated earlier our sizeable new freehold
development at the Los Flamingos Golf and Country Club is well-advanced and
performing above expectations. New opportunities are also being sought.



Commercial Operations

Our commercial division, Hillview Securities, had a difficult year in 2001 on
the back of a weaker Irish commercial property market. The first phase of 12,000
square metres at the Millennium Business Park, Ballycoolin, Dublin sold well but
closings took longer than expected. The current year has brought much improved
market conditions, as witnessed by the successful disposal of 11 acres of land
at Ballycoolin to an end user. Consequently we expect to report a stronger
performance at Hillview in 2002.



The profit stream of the Group is becoming increasingly diversified with five
businesses in three countries. It is the intention of the Directors to continue
this diversification programme by investing additional capital in particular in
our UK and Spanish operations.



Margins are holding steady and economic indicators are favourable to our
businesses, pointing to the year ahead as providing further growth for the Group
across all its subsidiaries.



Roy Ferris, Chairman, McInerney Holdings plc.



ENDS



FOR INFORMATION:

Siobhan Molloy, Weber Shandwick FCC      Tel: [phone] or (086) 817 50 66



This announcement has been issued through the Companies Announcement Service of
                           the Irish Stock Exchange.




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