Acquisition

Persimmon PLC
05 June 2003



                                                                   5th June 2003



                       PERSIMMON BUYS LOCAL HOUSE BUILDER



Persimmon plc today announces the acquisition of the Merewood Group Limited ('
Merewood') for a cash consideration of £22.6 million.



Merewood, is a regional house building company operating as Merewood Homes and
Crowther Homes throughout Cumbria and Lancashire. In 2002, Merewood legally
completed 281 new home sales with an average selling price of £126,000 giving
revenue of £35.4 million. This purchase including circa £9.0 million of existing
debt has been funded from existing group facilities.  Merewood's landbank is in
excess of 1,000 plots with an additional 74 acres of strategic land.



John White, Group Chief Executive of Persimmon, commented 'This transaction
provides us with over 1,000 additional plots in an area where we were seeking to
expand our operations. The majority of the land is either currently being
developed or is ready for immediate use.  It has been purchased at better prices
than are currently available on the open market.'



This purchase will see Merewood rebranded Persimmon, and together with the
existing Persimmon Lancashire operation which currently has an annual output of
300 units, will result in an enlarged operation producing between 500 and 600
units a year. Persimmon considers this to be the optimum size for a house
building operation.



This strategic fit with the Lancashire operation will result in savings in
overheads, benefits from Persimmon's purchasing power and opportunities to
introduce a wider range of house types with more focused marketing.  These
benefits together with other achievable synergies will result in improved
margins and earnings.



Merewood was established over 20 years ago and has built a good local reputation
with a sound management team and Persimmon is confident they will integrate well
into the Persimmon culture.



John White, added 'This attractive landbank, together with a proven management
team and a well established ongoing business with good forward sales, will
further strengthen Persimmon's business.'



Persimmon will issue a first half trading update on Wednesday, 25 June 2003.



For further information, please contact:
John White, Group Chief Executive                       Faeth Birch
Mike Killoran, Group Finance Director                   Finsbury

John Millar, Divisional Chief Executive (North)         Tel: [phone]
Persimmon plc

Tel: [phone]



Print resolution images of Persimmon plc management are available for media
download at www.newscast.co.uk



                      This information is provided by RNS
            The company news service from the London Stock Exchange