Acquisition

CRH PLC
10 July 2002



             D E V E L O P M E N T   S T R A T E G Y   U P D A T E

                                                                   July 10, 2002

                 CRH ANNOUNCES FURTHER DEVELOPMENT INITIATIVES

                              OF EURO 394 MILLION



CRH plc, the international building materials group, announces a range of
development initiatives totalling euro 394 million undertaken during the first
half of 2002. These initiatives, which are in addition to the EHL and U.S.
Aggregates transactions announced in May, bring total development spend for the
first half of 2002 to over euro 630 million, of which approximately one-third
arises in Europe with the balance in the Americas.

Commenting on these developments, Liam O'Mahony, CRH Chief Executive, said:

'In combination with the EHL and U.S. Aggregates deals, these initiatives,
comprising 18 acquisitions and investments and two capital expenditure projects,
demonstrate the continued success of CRH's development strategy in securing
strategic mid-sized deals and in undertaking capacity enhancements to drive
growth and consolidate market leadership positions across all Divisions of the
Group.'

The principal initiatives contained in this Development Strategy Update are
summarised as follows:

  • Materials - Europe : euro 9.7 million - construction of a precast concrete
    wall panel facility in Ireland, purchase of an aerated concrete producer in
    northern Poland and establishment of a greenfield asphalt business in
    Warsaw.

  • Products & Distribution - Europe : euro 37.6 million - three acquisitions
    by the Distribution Group adding four branches in the Netherlands and seven
    in Switzerland.

  • Materials - The Americas : euro 242.2 million - ten acquisitions/
    investments in New Hampshire, Montana, Iowa, Idaho, Ohio and West Virginia
    and construction of additional liquid asphalt storage facilities in Shelly's
    Ohio operations.

  • Products & Distribution - The Americas : euro 104.3 million - three
    acquisitions by the Architectural Products Group and the Distribution Group
    in New York/New Jersey, downtown Chicago and southern California.

Contact at Dublin 404 1000 ([phone])

Liam O'Mahony Chief Executive

Harry Sheridan Finance Director

Myles Lee General Manager - Finance



  CRH plc, Belgard Castle, Clondalkin, Dublin 22, Ireland TELEPHONE [phone]
                            1000 FAX [phone]

   E-MAIL [e-mail] WEBSITE www.crh.com Registered Office, 42 Fitzwilliam
                           Square, Dublin 2, Ireland





                 CRH ANNOUNCES FURTHER DEVELOPMENT INITIATIVES

                              OF EURO 394 MILLION



CRH plc, the international building materials group, announces a range of
development initiatives totalling euro 394 million undertaken during the first
half of 2002. These initiatives, which are in addition to the EHL and U.S.
Aggregates transactions announced in May, bring total development spend for the
first half of 2002 to over euro 630 million, of which approximately one-third
arises in Europe with the balance in the Americas.

Materials - Europe : euro 9.7 million

Republic of Ireland

Roadstone Dublin has commenced construction of a precast concrete wall panel
plant at its Belgard facility in southwest Dublin at a total cost of euro 2.4
million. The plant, which is expected to be commissioned by the end of this
year, will expand Roadstone Dublin's existing range of walling products.

Poland

In February, the Division acquired Prefabet Reda, an aerated concrete producer
located close to Gdynia in northern Poland with annual sales of euro 5 million.
The acquisition is in line with the Division's strategy to develop a nationwide
presence in this sector and complements the purchase in 2000 of Warsaw-based
Prefabet Kozienice.

By way of further expanding its downstream market presence, the Division has
established an asphalt production company (Masfalt) to serve the blacktop market
in the Warsaw region. This investment provides strong potential for future
bolt-on development activity and for the formation of strategic linkages with
major road contractors. The new facility is expected to be fully operational for
the latter part of the 2002 paving season.

The total cost of these initiatives in Poland is euro 7.3 million, on which
goodwill of euro 0.5 million arises.

Products & Distribution - Europe : euro 37.6 million

Distribution Group

In April, the Distribution Group acquired Stiho Bouwmarkten, expanding its
network of DIY stores in the Benelux, all of which operate under the
market-leading GAMMA/KARWEI franchise, to 62 outlets. With three GAMMA stores in
the densely populated province of Utrecht and annual sales of euro 20 million,
the acquisition establishes a significant initial presence for the group in this
area of the Netherlands from which to pursue further development opportunities.

In June, Garfield Aluminium acquired Aluland, a specialised aluminium merchant
located near Rotterdam in the Netherlands with annual sales of euro 6 million.
In conjunction with envisaged margin enhancement opportunities, this transaction
broadens Garfield's product range and consolidates its position as the leading
independent aluminium merchant in the Netherlands.

Also in June, Richner (formerly Jura Distribution) purchased Vicom Baubedarf, a
Swiss builders merchant with annual sales of euro 70 million. With seven
locations in the German-speaking part of northwestern Switzerland, the
acquisition brings the number of outlets in the Richner branch network to 36.
The acquisition is expected to yield cost benefits principally in terms of
purchasing and logistics.

The total cost of the three Products & Distribution - Europe acquisitions is
euro 37.6 million, on which goodwill of euro 10.3 million arises.

Materials - The Americas : euro 242.2 million

The Materials Division in North America continued its expansion drive during the
first half of 2002 with the completion of a total of ten deals yielding combined
incremental annual sales of circa euro 187 million.

Northeast Group

In June, the Division acquired Quinn Brothers, an integrated aggregates and
asphalt producer in southern New Hamphire with annual sales of euro 5 million.
The deal consolidates Pike's competitive positioning in the New Hampshire area
by providing access to additional strategically located, high quality aggregate
reserves.

Western Group

In January, the Division purchased Maronick Construction, the leading producer
and supplier of construction aggregates, asphalt and readymixed concrete in
Helena, western Montana. With annual sales of euro 27 million and owned
aggregate reserves of 120 million tons, the acquisition provides an excellent
geographic fit with Jensen, CRH's existing Montana-based business. The
integration of the two businesses is expected to result in operational synergies
and a programme of asset rationalisation.

As part of its strategy to establish an integrated materials business in Iowa
following the purchase of Hallett Materials and Des Moines Asphalt in August
2001, the Division acquired Nuckolls Concrete Services, the leading readymixed
concrete producer in central and western Iowa, in January. With annual sales of
euro 61 million, the acquisition consolidates Oldcastle's position in the Iowa
market and should generate savings in terms of cement purchasing, haulage and
administration. In addition, Nuckolls completed two bolt-on acquisitions in June
(Hosteng Concrete and Gravel and J.W. Ready Mix and Construction) with combined
annual sales of euro 3 million. These acquisitions further expand the Division's
readymixed concrete activities and sand and gravel reserve positions in western
Iowa.

In February, the Division acquired selected assets of U.S. Aggregates in
southwestern Idaho comprising eight readymixed concrete plants and permitted
sand and gravel reserves totalling 15 million tons. With annual sales of euro 32
million, the acquisition augments the existing Idaho business through expanding
market coverage and offers scope for adding value through overhead reduction and
other savings. The subsequent acquisition by CRH of U.S. Aggregates' operations
in Utah and Alabama was separately announced in May 2002.

Central Group

In April, the Materials Division acquired 35 million tons of permitted, high
quality aggregate reserves from Kermit Butcher Contractors in Elkins, West
Virginia. Development activity in this area continued in June with the
acquisition of R.H. Armstrong, an integrated aggregates and asphalt business,
also based in Elkins, with annual sales of euro 13 million. In combination with
Kermit Butcher, this transaction, with 25 million tons of owned aggregate
reserves, further improves aggregate self-sufficiency in Shelly's West Virginia
operations and positions the enlarged business to participate in local
infrastructure projects.

Also in April, Oldcastle Materials entered into a joint venture arrangement with
W.W. Boxley Company in southeastern West Virginia. With long-term access to 115
million tons of aggregate reserves and annual sales of euro 12 million (CRH
share: euro 6 million), the joint venture provides a strategic base for further
development activity in this region.

In June, the Division bought two sand and gravel deposits and four quarries with
a total of 225 million tons of aggregate reserves in Columbus, Ohio from Martin
Marietta Materials. In addition to augmenting aggregate self-sufficiency in the
Shelly Group, the acquisition, with annual sales of euro 40 million, complements
Shelly's existing aggregate, asphalt and readymixed concrete businesses in the
Columbus market and enhances vertical integration. A reorganisation of
production within the Columbus region should permit the realisation of cost
savings in the areas of production and delivery.

The total cost of the ten deals completed by Materials - The Americas amounts to
euro 235.8 million, on which goodwill of euro 33.2 million arises.

In addition, the Shelly Group has undertaken a project to construct three
30,000-ton liquid asphalt storage tanks at the Gallipolis terminal on the Ohio
River in southern Ohio at a total cost of euro 6.4 million. The investment will
lead to a substantial increase in Shelly's winter-fill storage capacity for
bitumen thereby enabling it to take further advantage of lower seasonal prices
for this key raw material.

Products & Distribution - The Americas : euro 104.3 million

Architectural Products Group (APG)

In March, APG purchased Anchor Concrete Products, the leading manufacturer of
masonry, interlocking pavers and segmental retaining walls in New Jersey with
annual sales of euro 49 million. In addition to providing extra production
capacity for the homecenter business in the New York/New Jersey metropolitan
area, the acquisition of Anchor gives APG an increased dealer network for its
own product lines (including both Belgard(R) hardscapes and Trenwyth(R)
architectural masonry products) and consolidates its position in the attractive
segmental retaining walls market by securing Anchor's Keystone(R) licence for
the New Jersey region.

Distribution Group

Remodelers Supply, a single-branch distributor of siding, roofing and related
products in the Chicago market, was acquired in March. With annual sales of euro
14 million derived principally from the residential sector, the acquisition of
Remodelers provides Allied with its first branch in downtown Chicago,
complementing its other Chicagoland area locations, and is in line with its
stated development strategy of increasing its presence in major metropolitan
areas.

In June, the Distribution Group acquired A.L.L., the largest distributor of
roofing materials to professional contractors in southern California. With nine
long-established and well-located branches generating annual sales of circa euro
88 million, the acquisition affords Allied the necessary critical mass in this
market. It is anticipated that post-acquisition synergies will materialise
through best practice transfers and optimisation of purchasing programmes.

The total cost of the three acquisitions completed by Products & Distribution -
The Americas amounts to euro 104.3 million including goodwill of euro 41.3
million.



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