Trading Update

Gleeson(M J)Group PLC
24 May 2006


  
                              MJ GLEESON GROUP PLC
                                        
                      Strategy Update and Trading Statement 
                                                                                
M J Gleeson Group plc announces that the implementation of its new strategy,
announced on 31st March 2006, is ahead of programme.

In particular:
     
•    As previously announced, the sale of Gleeson MCL to Morgan Sindall plc, for 
     a cash consideration of £23.3m, a substantial premium to book value, has 
     been completed.
          
•    The Group is in advanced discussions regarding the sale of Concrete Repairs 
     Limited.

•    There has been substantial interest in Gleeson's Engineering Division, a 
     market leader in capital projects for the water and waste water sector, 
     which is being prepared for sale.
     
•    The Group has tendered its commercial property investment portfolio for 
     disposal and considerable interest has been generated.

In addition:
     
•    An exercise has been undertaken to review and rationalise the Group's 
     overhead cost base, including the relocation of the Head Office to existing
     Group premises at Fleet in Hampshire from Cheam in Surrey. Consultation 
     with the affected employees is underway and it is anticipated that the 
     exercise will be complete by the end of the summer.
     
•    The structural changes to the Board are nearly complete, with a short list 
     of Non-Executive Directors under consideration.

The move substantially to reduce the traditional speculative house building
activities of Gleeson Homes in favour of a much greater emphasis on housing for
sale in urban regeneration areas has started. However, the implementation of
radical change is inevitably disruptive and, in consequence, the greater part of
the profit previously anticipated to be recognised in this current year, ending
30th June 2006, will now be deferred into the next financial year. Furthermore,
because of patchy market conditions, combined with a desire to achieve sales,
there has been a reduction in profit margin on some sites. Therefore, the result
of the Homes Division, and in consequence the underlying result of the Group
(before net one-off profits from the implementation of the strategic review),
for the year ending 30th June 2006 is now expected to be very substantially
below market expectations.

The Group remains confident that its decision to refocus its activities will
enhance shareholder value.

The Board continues to anticipate issuing a pre-close update in July 2006.

Dermot Gleeson, Chairman, said 'Whilst the results for the Homes Division, which
has embarked on a programme of radical strategic change, will be below
expectations this financial year, we are making excellent progress with both the
disposal programme and the refocusing of the business.'

Enquiries:
M J Gleeson Group plc                                Tel: [phone]
Terry Massingham (Chief Executive)                                     
                                                                       
Bankside Consultants Limited                                           
Charles Ponsonby                                     Tel: [phone]

 



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