Divisional Restructuring

Gleeson(M J)Group PLC
18 November 2004


                             M J GLEESON GROUP PLC

                      Restructuring of Building Divisions

Gleeson, the construction services, homes and property group, announces that, as
indicated at the time of the Preliminary Announcement in October, it is
restructuring its building operations to allow them to focus on long term
partnering relationships, similar to those that have been so successfully
secured by Gleeson's Engineering Division, and to focus on projects with a more
manageable risk profile.

Key features of the restructuring are:

  • a reduction in the scale of operations;
  • the combination of the Group's two Building Divisions, Northern and
    Southern, into a single Division with a flatter management structure;
  • the closure of two offices; and
  • a substantial reduction of the cost base.

The cost of the restructuring, which will be accounted for as an exceptional
item within the Group's operating results for the year to 30 June 2005, is
estimated at £4.0 - £5.0 million.

Dermot Gleeson, Chairman, stated 'Following the Group's achievement of record
earnings per share in 2003/04, Gleeson Regeneration, Gleeson Homes, Gleeson
Properties and the Engineering Division continue to perform well. In our
Preliminary Announcement of 12 October 2004, however, we flagged that the
performance of the Building Divisions had been disappointing and that changes
would be made. We are determined substantially to de-risk our building
operations and to ensure that they achieve more attractive and consistent
margins'.

Enquiries:

M J Gleeson Group plc                                            020-8644 4321
Dermot Gleeson (Chairman)
Andrew Muncey (Group Managing Director)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166


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