Interim Management Statement

Gleeson(M J)Group PLC
14 November 2007


Wednesday 14 November 2007



                             M J GLEESON GROUP PLC

                          INTERIM MANAGEMENT STATEMENT

Gleeson is today issuing its first Interim Management Statement, covering the
period from 1 July 2007 to 14 November 2007, as required by the UK Listing
Authority's Disclosure and Transparency Rules.

The Interim Management Statement contains forward looking statements which:

   • have been made by the Directors in good faith based on the information
    available to them up to the time of their approval of this report; and


   • should be treated with caution due to the inherent uncertainties,
    including both economic and business risk factors, that underlie such
    forward looking information.

This Interim Management Statement has been prepared for the Group as a whole. It
therefore emphasises matters which are significant for the parent company and
its subsidiaries when viewed as a single unit.

Our Operations

Gleeson operates as a residential house-builder with a particular focus on the
physical, social and economic regeneration of urban areas controlled by local
authorities or other public bodies. The Group has a specialist business unit
that takes the lead in developing new PFI opportunities that bring work to the
Group's various business units. In addition, the Group operates a strategic land
development business that enhances the value of land, principally held under
option, through the planning process, and a facilities management business that
focuses on the long-term planned and reactive maintenance programmes of housing
and property owning organisations. The Group's commercial property development
business, as previously announced, is no longer committing to new projects and
is in the process of developing out and subsequently disposing of its current
portfolio in an orderly manner.

The recent turbulence in the financial markets has restricted the supply of
mortgage credit to prospective house buyers. This, combined with the current
high level of interest rates in the UK, has resulted in a lower number of
visitors to our housing sites than during the comparable period last year and a
slowing down in the number of legal completions. However, as long as interest
rates do not continue to rise, unemployment remains materially unchanged and the
'credit crunch' proves to be short-lived, the general economic environment in
which the Group operates should remain positive.

Recent Government announcements with regard to the house-building sector and in
particular the affordable element of this sector, allied to the long-term
maintenance requirements of social housing, are very encouraging and confirm the
Board's belief that its transformation programme, which was designed to focus on
these sectors, will bring long-term rewards to shareholders.

Progress during the Period

The Group achieved financial close on the Cheshire Extra Care Homes PFI project.
This has resulted in the Group receiving a success fee and the Group's
facilities management business will benefit from a long-term contract once the
Care Homes are constructed. In addition, the project will provide £65m of
revenue for Gleeson Building Limited, a management buy-out vehicle in which the
Group retains an equity interest.
The Group was selected as preferred bidder for the Leeds Independent Living PFI
project, which is expected to achieve financial close in the year to 30 June
2009.

The Group has been short listed for the Zero Carbon challenge housing project
for English Partnerships at Hanham Hall, Bristol.

As was the case in the comparable period last year, no strategic land
transactions were completed.

The Group has maintained a net cash positive balance during the period and has
not drawn down on any of its available facility.

Outlook

The Group's trading outlook currently remains in line with market expectations.
On 14 December 2007, the Group will be holding its Annual General Meeting, when
a further update will be provided.

The Group remains focused on developing its operational ability to achieve a
significantly improved return on sales and capital employed.

M J Gleeson Group plc                   By order of the Board
Integration House                       Dermot Gleeson
Rye Close                               Chairman
Ancells Business Park
Fleet
Hampshire GU51 2QG

Enquiries:

M J Gleeson Group plc                                             01252-360 3000
Paul Wallwork (Group Chief Executive)
Chris Holt (Group Finance Director)

Bankside Consultants Limited
Charles Ponsonby                                                   020-7367 8851






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