Housing Association Maintenance - Withdrawal Plans

Morgan Sindall PLC
3 November 1999

                            
                   MORGAN SINDALL PLC
                            
 Planned withdrawal from Housing Association Maintenance
                          Work
                            
Morgan Sindall Plc today announces that it is withdrawing
from   tendered   term  maintenance  work   for   Housing
Associations. The maintenance operation trading under the
name SMHA Limited was initiated by Morgan Sindall in 1997
undertaking  response term maintenance work  for  housing
associations. This operation had a turnover of £3 million
per  annum.  Initial results have been disappointing  and
the  Board has resolved to phase out existing agreements.
It is anticipated that this will result in an exceptional
charge of £3.7 million in the current year.

Morgan  Sindall's  core businesses  comprising  fit  out,
regional construction and  affordable housing,  have been
trading  well  and  are  performing  significantly  above
market  expectations.  Overall, including the  impact  of
the  exceptional charge, it is anticipated  that  pre-tax
profits  for the year will be marginally ahead  of  those
reported last year.

                                                         
Enquiries:

Morgan Sindall Plc                              Tel:  [phone]
John Morgan, Chief Executive
John Bishop, Group Finance Director

College Hill                                    Tel:  [phone]
Kate Pope
Matthew Smallwood