Development Strategy

CRH PLC
15 July 1999


CRH ANNOUNCES EURO 197.7 MILLION DEVELOPMENT INITIATIVES 
HIGHLIGHTS

CRH plc, the international building materials group, today announced a range
of development initiatives totalling Euro 197.7 million undertaken during the
first half of 1999. These initiatives are in addition to the purchase of the
remaining 49.3% of Ibstock, together with the acquisitions of
Finnsementti/Rudus (announced in May), Dell Contractors/Millington Quarry and
Thompson McCully Companies (both announced earlier in July) and the disposal
of Keyline Builders Merchants (announced in April).

* CRH Europe - Materials : Euro 28.1 million 
Buyout of minority shareholding in Holding Cement Polski in Poland together
with additional investment in Cementownia Ozarow.
Acquisition of a readymixed concrete, paver and precast elements producer in
Poland.
Buyout of Cementownia Rejowiec, a cement plant in southeast Poland.
Investment in a cement producer in Ukraine.
Completion of a gravel extraction and processing investment near Warsaw.

* CRH Europe - Products & Distribution : Euro 29.9 million
Acquisition of the leading specialist brick merchant in the Netherlands and
agreement to acquire a brick production facility in the United Kingdom.

* North America : Euro 134.6 million
Acquisition of operations in New York State, New Mexico, Colorado, Wyoming and
Idaho by the Materials Group together with the buyout of the minority in P.J.
Keating Company. 
Acquisition of businesses in Arizona, Texas, California, Florida and Michigan
by the Architectural Products Group and installation of capacity to serve the
New York Metropolitan area.
Acquisition of a manufacturer of manholes and drainage products in Tennessee
and Kentucky by the Precast Group.

* South America : Euro 5.1 million
Investment in a glass business in Chile.

Don Godson, CRH Chief Executive, commented:  

 'In line with traditional CRH strategy, these initiatives completed during
the first half of 1999 combine capital expenditure projects to fuel organic
growth with the acquisition of value-adding mid-sized businesses that
consolidate market presence and establish footholds for future expansion.'  

Contact at Dublin  404 1000  ([phone])
Don Godson        Chief Executive
Harry Sheridan    Finance Director
Myles Lee         General Manager Finance

CRH ANNOUNCES EURO 197.7 MILLION DEVELOPMENT INITIATIVES 

CRH plc, the international building materials group, today announced a range
of development initiatives totalling Euro 197.7 million undertaken during the
first half of 1999. These initiatives are in addition to the purchase of the
remaining 49.3% of Ibstock, together with the acquisitions of
Finnsementti/Rudus (announced in May), Dell Contractors/Millington Quarry and
Thompson McCully Companies (both announced earlier in July) and the disposal
of Keyline Builders Merchants (announced in April).

CRH Europe - Materials

In January, CRH increased its stake in Holding Cement Polski ('HCP') to 100%
by acquiring the remaining 4% held by Razem, a regional development agency in
Poland. In addition, during the first six months of 1999, HCP purchased part
of the Polish Government's shareholding in Cementownia Ozarow ('CO') bringing
CRH's interest in this leading cement producer to approximately 94%.

In June, CO acquired Faelbud, an integrated manufacturer of readymixed
concrete, pavers and precast elements based in Lublin. With annual sales of
circa Euro 6 million, this acquisition extends CO's vertical integration in
the southeast of Poland.

Also in June, CO increased its stake in Cementownia Rejowiec to 100% by
acquiring the remaining shareholding. The Rejowiec cement plant has a nominal
capacity of approximately 0.7 million tonnes per annum and produces special
and standard cements for national and local distribution respectively.

In May, CRH acquired a 75% shareholding in Podilsky Cement, a Ukrainian cement
manufacturer with annual sales approximating Euro 16 million. The Podilsky
plant, which has a production capacity of 3.7 million tonnes per annum from
six kilns, is the second largest cement production facility in Ukraine
supplying the western region of the country, an area contiguous to Poland. The
investment builds on CRH's existing materials presence in Poland and
represents a further step in CRH's planned investment programme into new
markets offering higher growth prospects. 

CO has completed the installation of a gravel extraction and processing
facility at the Morawy deposit located to the north of Warsaw. This investment
ensures increased availability of internal aggregate supplies to the expanding
Warsaw market and particularly to Behaton, CO's readymixed concrete business
based in Warsaw.

The total cost of the development initiatives undertaken in CRH Europe -
Materials is Euro 28.1 million inclusive of goodwill amounting to Euro 3.5
million.

CRH Europe - Products & Distribution

In June, the Clay Products Group acquired Kooy Bilthoven, the leading
specialist brick merchant in the Netherlands with annual sales approximating
Euro 38 million. Kooy, which is based near Utrecht, consolidates CRH's market
leadership in the high quality facing brick segment in the Netherlands where
virtually all facing bricks are delivered via merchants. 

Ibstock has entered into a contract, conditional on the transaction not being
referred to the Competition Commission, to acquire a clay brick production
facility based in Ellistown, Leicestershire in the United Kingdom from a
subsidiary of Hepworth plc. The plant, with annual sales of circa Euro 10
million, is situated adjacent to Ibstock's largest manufacturing plant and its
associated extensive clay reserves. 

The total cost of the two acquisitions is Euro 29.9 million inclusive of
goodwill of Euro 7.1 million.


North America

Materials Group - Northeast
In March, the Oldcastle Materials Group acquired Poughkeepsie Asphalt located
in New York State adjacent to Tilcon New York's Clinton Point quarry. The
company has annual asphalt sales of circa Euro 5 million. This add-on
acquisition establishes Tilcon New York's presence in the Dutchess and Putnam
Counties asphalt markets and strengthens its existing aggregate operations in
this area. 

In April, the Materials Group acquired the remaining 35% of P.J. Keating
Company not already owned in accordance with the terms of a buyout option
negotiated at the time of the initial investment in 1994. Keating, located at
Lunenburg in northern Massachusetts, is an integrated manufacturer of
aggregates and asphalt. 

Materials Group - West
The Materials Group has made three add-on acquisitions in Albuquerque, New
Mexico and one add-on acquisition in Colorado to supplement its existing
operations in the 'Four Corners' region of Colorado/New Mexico. Albuquerque
Rock Products and American Building Supply were acquired in February whilst
Way-Cor Redi-Mix was acquired in March. The combination of these companies,
with total annual sales approximating Euro 21 million, gives rise to an
integrated aggregate, asphalt and readymixed concrete business with excellent
reserves backing in the strong Albuquerque market. B&B Excavating, a leading
integrated aggregates, asphalt, readymix and construction business located in
Edwards, Colorado, was acquired in June. The company has annual sales of circa
Euro 21 million and has a strong aggregate reserves position which is
unrivalled in its market area. It represents an excellent fit with United
Companies based in Grand Junction, Colorado acquired in January 1998. These
acquisitions bring annualised Materials Group sales in the 'Four Corners'
region to over Euro 100 million.

In April, the Materials Group acquired Cundy Asphalt, an asphalt paving
contractor based in Gillette in northeastern Wyoming. Cundy, with annual sales
of circa Euro 19 million, represents the first acquisition in the
Wyoming/Dakotas region since the purchase of Hills Materials in October 1998.

The Materials Group completed two add-on acquisitions in the Idaho market
during the first six months of 1999. Idaho Concrete Company ('ICC') was
acquired in April and Hunziker Construction Company was acquired in May. ICC
is a readymixed concrete and aggregate producer based near Boise in
southwestern Idaho and Hunziker is a leading aggregates, asphalt and
construction business headquartered in Pocatello in southeastern Idaho. The
two businesses have combined annual sales of approximately Euro 11 million.
The acquisitions, which will be combined with the Idaho operations of Jack B.
Parson Companies, extend the scope of vertical integration in the Idaho
market.

Architectural Products Group
In January, Oldcastle Architectural Products Group ('APG') acquired Young
Block Company, a producer of concrete block, pavers and retaining walls based
in Sierra Vista and Tucson in Arizona. The company has annual sales
approximating Euro 10 million. The co-ordination of Young with Superlite,
APG's existing block operation in Phoenix, Arizona, will create operating
synergies and will provide additional manufacturing capacity for the growing
Phoenix market.

In February, APG acquired Eagle Concrete Products located near Houston, Texas.
Eagle manufactures masonry and bagged concrete products serving the
construction markets of southern and central Texas and has annual sales of
circa Euro 24 million. Eagle will complement APG's existing operations in
Texas and will provide a platform to establish a leadership position in the
large and growing Houston metropolitan region.

In June, APG acquired three concrete rooftile plants from Monier-Lifetile LLC.
The plants which are located in Arizona, California and Florida have combined
annual sales of approximately Euro 31 million.  The acquisition represents an
excellent opportunity to procure a viable development base in an embryonic
market with high development potential and to gain critical mass in a core CRH
business in the United States.

Also in June, APG acquired 4D, a producer of regular and architectural masonry
products based in Midland, Michigan northwest of Detroit. 4D, with annual
sales of Euro 13 million, enhances APG's strategic positioning in the Mid-West
and provides a new outlet for expanding its homecentre and hardscape
initiatives in a populous market.

APG has commenced a project to install a large pallet paver plant and a block
machine in eastern Pennsylvania. The facility, which will be commissioned in
the first half of 2000, will lead to increased sales in the homecentre and
hardscape sectors in the New York Metropolitan area. The project will lead to
increased capacity and reduced costs.

Precast Group
In June, Oldcastle Precast Group acquired Cloud Concrete Products with
operations in Nashville, Tennessee and Lexington, Kentucky. Cloud has annual
sales of Euro 19 million and produces manholes and drainage products. Whilst
the Precast Group operates in most major metropolitan areas in the
southeastern States, the acquisition of Cloud represents the Group's first
presence in the important and fast-growing Nashville market and also
establishes a base for the Group in Lexington, the second largest city in
Kentucky.  

The total cost of the thirteen acquisitions, the Keating buyout and the
paver/block installation amounts to Euro 134.6 million inclusive of goodwill
amounting to Euro 13.6 million.


South America

CRH has acquired a 50% interest in Vidrios Dell Orto at a cost of Euro 5.1
million inclusive of goodwill amounting to Euro 1.9 million. Dell Orto is the
market leader in glass tempering, window manufacturing and glass/aluminium
distribution in Chile with annual sales of Euro 11 million.

CRH plc, Belgard Castle, Clondalkin, Dublin 22, Ireland  TELEPHONE [phone]
1000  FAX [phone]
E-MAIL [e-mail] WEBSITE www.crh.ie  Registered Office, 42 Fitzwilliam
Square, Dublin 2, Ireland