Pre-Close Trading Update

Morgan Sindall PLC
05 July 2004

MORGAN SINDALL PLC

Appointment of Corporate Broker
and
Pre-close Trading Update

Appointment of Corporate Broker

The Board is pleased to announce the appointment of Hoare Govett Limited as the
Group's corporate broker with immediate effect.

Pre-close Trading Update

In order to keep investors informed of the Group's progress, the Board intends
in future to issue trading updates twice a year prior to entering the close
period.

The Board today announces an update of trading for the half year to 30 June
2004. The interim results will be announced on Monday 9 August 2004.

Trading

Overall, the Group continues to trade satisfactorily and in line with its
expectations for the current financial year.

Affordable Housing is performing strongly, reflecting its market leading
position and the Government's commitment to the Decent Homes and Sustainable
Communities programmes. The recently published Barker Report underlines the
positive long-term outlook for this sector.

In February 2004, we commented that the Fit Out division was seeing tentative
signs of recovery in its market and order book. This recovery has continued in
the first half of this year and the division has performed in line with our
expectations.

Infrastructure Services is trading in line with the prior year, as anticipated,
as work continues on its major projects.  At Heathrow T5 tunnelling has
commenced on the Heathrow Express and Piccadilly line extensions and in Newport
the Southern Distributor Road being constructed under PFI nears its July
completion target.  In Scotland the £54m A92 Dundee to Arbroath road
improvements have commenced and are making good progress.

Construction is realising the benefits from its focus on the education, health,
commercial and industrial sectors.   It is anticipated that this division will
return a modest profit for the half year. Construction continues to concentrate
on key clients and longer-term framework arrangements such as NHS LIFT projects,
which we believe is the future for this division.

The Group's order intake during the first half has been satisfactory and the
forward order book has reduced slightly to £1.5bn mainly reflecting the timing
of AMP4 and PFI bids where a number of decisions are anticipated in the second
half.  In addition cash generation has been better than anticipated during the
first half and further details will be provided in the interim statement.


John Morgan, Executive Chairman commented:

'The Group has made a positive start to the year, with each division having a
solid first half.  Forward order books are encouraging and current projects are
progressing well.

With signs of sustained or increasing activity across the sectors that our
divisions operate in, we are well positioned for the future.'


                                                                     5 July 2004


ENQUIRIES:

Morgan Sindall plc                                Tel: [phone]
Paul Smith, Chief Executive
David Mulligan, Finance Director

College Hill                                      Tel: [phone]
Kate Pope
Matthew Smallwood


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