AGM Statement

Shanks Group PLC
29 July 2004


29 July 2004

Company Announcement

Shanks Group plc AGM

Strategic Review

Following last year's strategic review Shanks successfully completed the £228m
cash sale of its landfill and related power operations on 1 July 2004 (the
Disposal). As a consequence, on a pro forma basis, net debt has been reduced to
£110m and net assets stand at £200m.

Additionally, the Group has determined that its waste collection and transfer
activity in Yorkshire was subscale and has therefore disposed of it to Onyx
Environmental Group plc for £1.3m cash.

Shanks can now focus on its continental businesses and markets in the UK which
are being created by the European Landfill Directive and the increasing levels
of UK Landfill Tax. In particular, current local authority integrated waste
management tenders are requiring contractors to achieve significant levels of
landfill diversion and recycling such that the authorities can meet the
statutory targets placed upon them by Government. One such opportunity is a 25
year contract for Dumfries and Galloway where the Group is preferred bidder and
financial close is expected shortly. This contract will provide an initial
annual revenue of £6m and a total revenue of £270m over its 25 year life. Both
of the Group's similar contracts for Argyll & Bute and East London Waste
Authority continue to perform according to their plans.

First Quarter Update

In the Circular to Shareholders dated 4 June 2004, it was stated that the pro
forma effect of the Disposal was earnings dilutive. The Group has, however,
taken significant steps to reduce costs in its retained UK businesses and to
improve trading generally. Profits for the first quarter were encouraging and
indicate that, barring unforeseen circumstances, the management action programme
is expected at least to offset any dilution arising in the current year.

                                      Ends

For further information contact:

Michael Averill, Group Chief Executive
David Downes, Group Finance Director
Shanks Group plc, telephone [phone]


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