Interim Results - Part 1 of 2

Berkeley Group Holdings (The) PLC
09 December 2005





                        The Berkeley Group Holdings plc


PRESS RELEASE                                                  9th DECEMBER 2005



                           INTERIM RESULTS ANNOUNCEMENT

     BERKELEY GENERATES £326.4 MILLION OF CASH - £229.7 MILLION FROM CROSBY
      (DISCONTINUED OPERATIONS) AND £96.7 MILLION IN THE CONTINUING GROUP

               ON TARGET TO RETURN £2 PER SHARE IN DECEMBER 2006

                NET ASSET VALUE PER SHARE UP 23.6% TO 640 PENCE

The Berkeley Group Holdings plc ('Berkeley' or the 'Group') - the urban
regenerator and residential property developer - announces its interim results
for the six months ended 31st October 2005. These are the first results to be
published under International Financial Reporting Standards ('IFRS'). Highlights
of the results include:

   • Return of Capital On target to meet next B share payment (£2 per share
     in December 2006). Further payments scheduled for December 2008 (£2 per
     share) and December 2010 (£3 per share)

   • Net Cash £71.3 million net cash from £255.1 million net debt at year
     -end (30th April 2005)

   • NAVPS Up 23.6% to 640 pence from 518 pence at the year-end

   • Land Holdings 24,197 plots in the continuing Group; up from 23,123 at
     the year-end

   • Forward Order Book £622.6 million compared to £574.9 million at last
     half-year for the continuing Group

                                 Oct 2005       Oct 2004
                                £'million      £'million

Group Revenue                       503.1          419.5       +19.9%

Operating Profit                     89.2           90.2        -1.1%
Net Finance Costs                   (5.8)            1.9
Joint Ventures                        2.6            7.1       -63.4%

Profit Before Tax                    86.0           99.2       -13.3%
Tax                                (24.4)         (27.1)

Profit After Tax                     61.6           72.1       -14.6%
Profit from Discontinued             80.8            6.4
Operations

Profit for the Financial            142.4           78.5       +81.4%
Period

EPS - Basic                        118.7p          65.8p       +80.4%
EPS - Continuing                    51.4p          60.3p       -14.8%
ROCE (excluding profit on           24.0%          23.3%
disposal)

Commenting on the results, Managing Director, A W Pidgley said:

'Berkeley has, for a number of years, set a strategic course which concentrates
relentlessly on its strengths, centred on our unrivalled land bank. These
results demonstrate the continuing benefit of this approach. We recognise the
management commitment and experience required to stay at the forefront of the
renaissance of our cities and that this creates a natural size for our business.

I am therefore especially proud that our scheme at Gunwharf Quays in Portsmouth
has received one of the six BURA Crystal Awards. BURA (the British Urban
Regeneration Association) marked its fifteenth anniversary by giving these
awards to the best of the best of its previous winners.

Berkeley has put in place an unambiguous long-term operating model that also
allows the business to maximise short-term opportunities. This flexible approach
is, I believe, best suited to a cyclical business and continues to serve
Berkeley well.

Berkeley has generated £326.4 million of cash in the six months to 31st October
2005, of which £229.7 million was generated from the disposal of Crosby. I am
pleased to say that Berkeley is on target to meet the remaining payments under
the Scheme of Arrangement.

Our business is complex, requiring both vision and a relentless attention to
detail. We are fortunate to have the management and teams able to meet this
unique combination of challenges. During the year Berkeley has continued its
excellent track record, blending imagination with total commitment and a
formidable understanding of the land and property market. The flair brought to
bear by the team in taking advantage of new opportunities is central to
Berkeley's continuing success.

Our business demands both talent and resolution. These are qualities that our
employees possess in abundance throughout the Group. I would like to take this
opportunity to recognise their vital and unremitting effort and to thank them,
on behalf of both the Board and shareholders, for the very real difference that
they make to our business.'

Roger Lewis, Chairman, said:

'The housing market has remained stable over the last six months with a return
to normal market conditions after a period of moderation. This in turn followed
the boom period, which was clearly unsustainable. Berkeley has secured sales at
a similar level to the corresponding period last year, in line with our business
plan following the Scheme of Arrangement. This has enabled Berkeley to maintain
its strong forward sales position at above £600 million.

Berkeley continues to acquire new sites, albeit very selectively, and to submit
planning applications on our development sites. The planning regime remains slow
and challenging in places, but we accept this as a consequence of the local
democratic processes involved and welcome the growing understanding of the
benefits urban regeneration can bring to existing communities. I am heartened by
the renewed commitment of central Government, the Greater London Authority and
many local planning authorities to bringing old redundant brownfield sites back
to life.

Scheme of Arrangement

The Scheme of Arrangement and The Berkeley Group Holdings plc reduction of
capital were approved by shareholders on 17th September 2004 and by the Court at
the end of October 2004. The Scheme of Arrangement created a Berkeley Unit
comprising one ordinary share and four redeemable B shares. The 2004 B shares
were redeemed on 3rd December 2004 for £5 a share at a cost to Berkeley of
£604.1 million. The redemption of the three remaining B shares is planned and on
target for December 2006, December 2008 and December 2010 for amounts of £2, £2
and £3 a share respectively.

Housing Market

The housing market in London and the South East has remained stable over the six
months ended 31st October 2005 - underpinned as it is by historically low
interest rates, strong employment and forecast economic growth in the UK. This
after the boom of recent years and the subsequent fall in demand brought on by
uncertainties as to world events and five sequential increases in interest
rates. Today's market is a good one to operate in for the right product in the
right location, priced correctly.

The investment market continues to be active and to account for over 50% of our
reservations. Under the Group's definition, an investor can range from a
customer purchasing a second home to a large institution.

Land prices remain extremely competitive and Berkeley, in accordance with its
strategy, has bought only very selectively. During the period terms were agreed
on only eight sites, three of which were in the St James business. This equates
to 2,349 plots.

The overall effect of these market conditions - a competitive land market,
stable sales prices and increases in both build and planning costs - is a
reduction of 0.7% in the forward gross margin. We expect this trend to continue.

For the Group to achieve its full year targets for 2005/06, 58% of the sales
required are on units with a selling price under £300,000 and 91% under
£500,000. This puts Berkeley in a strong position to achieve our full year
forecast in the current market conditions. For 2006/07, 63% of required sales
are for units under £300,000 and 92% under £500,000.

Results

These results have been prepared in accordance with the International Financial
Reporting Standards (IFRS), expected to be effective at 30th April 2006.
Accordingly, The Group published its restatement of financial information for
the year ended 30th April 2005 on 26th October 2005. In that statement we
reported that net assets at 30th April 2005 would be reduced by £48.1 million
from £669.5 million (558 pence per share) to £621.4 million (518 pence per
share). The reasons for the reduction were: revenue recognition (IAS 18),
accounting for £35.3 million of the reduction; employee retirement benefits (IAS
19) - £7.0 million; and the imputing of interest on deferred land creditors (IAS
2) - £5.7 million. At the same time, we reported that earnings per share for the
year ended 30th April 2005 would be reduced by 4.0% from 121.0 pence to 116.2
pence.

The one significant area of change for Berkeley concerns the recognition of
revenue and profit (IAS 18). Berkeley's previous policy reflected the two
different types of scheme the Group develops. For traditional house-building,
revenue and profit on exchanged sales contracts was recognised on physical
completion. This policy has not changed and is now also the policy adopted for
our urban regeneration business where revenue and profit were previously
recognised on a phased basis, reflecting the stage of completion of the relevant
exchanged unit. The change is one of timing and does not affect cash or the
underlying business.

Berkeley is delighted to announce a pre-tax profit of £86.0 million for its
continuing business for the six months ended 31st October 2005. This is £13.2
million less than the £99.2 million reported for the same period last year, a
reduction of 13.3%. For the full year ended 30th April 2005, Berkeley reported
63.8% of its pre-tax profits in the first half of the year. In 2005/06 we expect
a more evenly balanced trading profile over the course of the year, although
still with the weighting towards the first half.

Profit from discontinued operations totals £80.8 million and relates to Crosby
which was sold to Lend Lease on 8th July 2005. The profit comprises two elements
- Crosby's post-tax trading profit prior to disposal which was £1.1 million and
the £79.7 million profit from the disposal itself. In the six months to 31st
October 2004, Crosby's post-tax trading profit was £6.4 million.

Basic earnings per share totals 118.7 pence, an increase of 80.4% on the 65.8
pence reported for the same period last year. Basic earnings per share for
continuing operations are 51.4 pence compared to 60.3 pence last time - a
reduction of 14.8% - and discontinued earnings per share has increased to 67.3
pence from 5.5 pence last time. There are five factors behind the 14.8% fall in
basic earnings per share for continuing operations - reduced operating profit
for the continuing Group (-1.1%); reduced profit from joint ventures (-5.0%);
increased interest charge (-8.4%); reduced tax charge (+0.3%); and shares issued
(-0.6%).

Since the year-end, total equity has increased by £147.0 million to £768.4
million (April 2005 - £621.4 million) and net assets per share by 23.6% from 518
pence to 640 pence.

Return on Capital Employed for the period, excluding the profit on disposal of
Crosby, was 24.0% compared to 23.3% last time.

At 31st October 2005, Berkeley had net cash balances of £71.3 million (April
2005 - net debt of £255.1 million) after generating £326.4 million of cash flow
in the six months; £229.7 million from Crosby and £96.7 million from the
continuing Group.

Trading Analysis

Revenue for the continuing Group was £503.1 million (2004 - £419.5 million).
This comprises £495.8 million (2004 - £381.5 million) of residential turnover,
of which £0.5 million was from land sales (2004 - £3.8 million), and £7.3
million (2004 - £38.0 million) of commercial turnover.

During the period, the continuing Group sold 1,656 units at an average selling
price of £292,000. This compares with 1,276 units at an average selling price of
£290,000 in the same period last year.

At £7.3 million (2004 - £38.0 million), the continuing Group's turnover from
commercial activities represents the disposal of commercial units on nine
mixed-use sites.

The continuing Group's share of post-tax results from joint ventures was £2.6
million compared to £7.1 million in the same period last year. This arises from
the sale of 254 residential units (2004 - 426) at an average selling price of
£520,000 (2004 - £312,000) by St James, our joint venture with Thames Water. The
increase in average selling price is mainly due to Wycombe Square in London
where 7 units were taken to sales at an average sales price of £5.5 million.
Most of this scheme is now sold and the average selling price in joint ventures
is expected to fall back to more normal levels in the second half.

Excluding joint ventures and land sales, the house-building operating margin for
the continuing Group was 17.6% compared to 19.3% for the full year ended 30th
April 2005. This is within the 17.5% - 19.5% range (depending on mix) reported
by the Group over recent reporting periods and which we expect to continue as
long as current market conditions prevail.

Joint Ventures

Berkeley currently has £65.2 million of capital employed in joint ventures, an
increase of £0.7 million from the year-end figure of £64.5 million. The Group's
share of joint venture bank borrowings has fallen by £11.8 million to £45.8
million.

Berkeley currently has four joint ventures of which the largest is St James,
jointly owned with Thames Water. St James is currently developing 3,992 units,
an increase of 1,287 units in the period. The largest site acquired is for 866
units at Reading where planning has been secured and site clearance has started.
In addition, St James is working up further schemes totalling some 2,000 units.

Berkeley is committed to developing its partners' land holdings through joint
ventures if there is mutual benefit in so doing and this is very much part of
our ongoing business model.

Forward Sales

Berkeley's strategy continues to be to sell homes at an early stage in the
development cycle, often at the off-plan stage, as this secures customers'
commitment and therefore the quality of future revenue.

At 31st October 2005, Berkeley held forward sales of £622.6 million. This is a
drop of £64.4 million on the 30th April 2005 position of £687.0 million and an
increase of £47.7 million on the £574.9 million of forward sales held at 31st
October 2004 by the continuing Group.

Of the £622.6 million, £33.4 million (2004 - £14.9 million) is included in
debtors in the balance sheet, with the remaining £589.2 million (2004 - £560.0
million) benefiting both the second half of the current year and future years'
profit and loss account and cash flow.

Land Holdings

At 31st October 2005 the Group (including St James) controlled some 24,197 plots
compared to 23,123 plots at 30th April 2005. Of these holdings, 19,222 plots
(April 2005 - 20,091) are owned and included on the balance sheet. In addition,
3,024 plots (April 2005 - 2,680) are contracted and a further 1,951 plots (April
2005 - 352) have terms agreed and solicitors instructed. At 31st October 2005
the estimated gross margin is £1,683 million compared to £1,671 million at 30th
April 2005, an increase of £12 million. Over 95% of our holdings are on
brownfield or recycled land. The comparative figures exclude Crosby.

Berkeley is concentrating on maximising the return from its existing land
holdings and has submitted planning applications for the majority of its
regeneration sites.

Board Structure

Berkeley was delighted to announce at its AGM on 1st September 2005 that Michael
Tanner has joined the Board as a Non-Executive Director. Most recently a
Divisional Managing Director of George Wimpey, Michael has over 34 years of
experience in the building and construction industry with Tarmac and George
Wimpey.

Current Trading and Prospects

Berkeley has developed a business model that is cash generative and efficient in
terms of scale - one that allows the skills of its individuals to add value
throughout the development process. This strategy rests on the twin strengths of
an unrivalled land bank and highly talented entrepreneurial teams.

This model allows Berkeley to be flexible - a necessary feature in a cyclical
business. Through our powerfully branded divisions and joint ventures, Berkeley
is in a position to undertake and manage any form of development that presents
itself - be it a smaller more traditional site or the development a new
community in our towns and cities. This capability differentiates Berkeley as an
added value urban regenerator and property developer from a volume house-builder
and provides competitive advantage for the future.

Berkeley remains on target to deliver the £2 2006 B share payment and the £12 in
total by January 2011 while also creating a strong, sustainable and meaningful
ongoing business. The Group is well placed for 2006 and beyond, and we look
forward to the future with confidence and enthusiasm. Berkeley's aim is to
remain at the forefront of the renaissance of our cities - pioneering the
innovations essential for creating new communities, while remaining true to our
values and heritage.'




                                      END

For further information please contact:

The Berkeley Group Holdings plc                    Cardew Group

A W Pidgley                                        Tim Robertson
R C Perrins                                        Sofia Rehman

T: 01932 868555                                    T: 0207 930 0777




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