Trading Statement

Shanks Group PLC 30 March 2007 Shanks Group plc Pre Close Trading Statement 30 March 2007 Shanks Group plc, a leading European waste management company, today issues the following pre close period trading statement. The Group's preliminary announcement of the results for the year to 31 March 2007 will be published on Thursday 31 May 2007. Overall trading for the year to 31 March 2007 is expected to be in line with our expectations. The Mainland European operations have performed well in the period. The acquisition of Smink Beheer BV in The Netherlands continues to perform in line with our acquisition plan as co-operation with other Shanks Netherlands companies increases. Trading in Belgium has again been strongly assisted by some substantial non recurring projects. In the UK, the acquisition of the waste management and recycling activities of John W Hannay and Co Ltd has considerably strengthened our position in the Central Belt of Scotland. The business has been integrated into existing Shanks operations with additional investments also being made in new recycling infrastructure. The programme is proceeding according to plan and is expected to be of increasing significance when new regulations require the pre treatment of all waste prior to landfill from October 2007. UK Contaminated Land activity has been modest throughout the year but is expected to improve during the 2007/8 year particularly with work associated with the 2012 Olympic Games. The first Mechanical Biological Treatment (MBT) facility at East London Waste Authority (ELWA) project is now fully operational as is the MBT plant for the Dumfries and Galloway contract. Substantial quantities of the solid recovered fuel generated by the MBT process are now being regularly delivered to the cement industry. The second phase of the ELWA project has experienced a delay due to the insolvency of a subcontractor. Although now resolved there will be a four month unrecoverable delay leading to higher than planned operating costs in the early part of the 2007/8 year. Potential within the UK municipal waste market remains high with the Group recently appointed as preferred bidder for Cumbria County Council and to the short list to bid for Derbyshire's waste elimination needs. Ends For further information please contact: Michael Averill, Group Chief Executive Fraser Welham, Group Finance Director Shanks Group plc Telephone +44 (0) 1628 554920 Ginny Pulbrook, Executive Director, Citigate Dewe Rogerson Telephone +44 (0) 207 282 2945 This information is provided by RNS The company news service from the London Stock Exchange

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