Trading Statement

Galliford Try PLC
05 July 2006



                               GALLIFORD TRY PLC


                                 TRADING UPDATE



Galliford Try plc, the construction and housebuilding group, is providing the
following update to trading for the year to 30 June 2006 prior to entering its
close period.


Key Highlights


   •Full year profits expected to be substantially ahead of last year and in
    line with expectations
   •Integration of Chartdale Homes and Morrison Construction progressing as
    planned
   •Strong cash flows, cash in hand at year end
   •Construction order book at record £2.3 billion (2005: £950m)
   •Housebuilding completions over 1,000 for the first time at 1,054 homes
    (2005: 853 homes)
   •Housebuilding sales carried forward at record £78m (2005: £65m)
   •Landbank at record 4,022 units (2005: 2,455)
   •Financial close on £134m Highland Schools PFI
   •Awarded land remediation contract for Olympic Park in east London, and
    appointed preferred bidder by English Partnerships for redevelopment of 17
    acre site in Camborne, Cornwall


Outlook


Galliford Try expects to report full year profits substantially ahead of last
year and in line with expectations. The two significant acquisitions made in the
second half of the year, Chartdale Homes and Morrison Construction are both
performing well, and meeting our expectations both in terms of operational
performance and prospects for the future. Our construction divisions are
generating strong cash flows, with the Group achieving overall cash in hand at
the year end.


Construction


The integration of Morrison is being achieved in line with our plans, and we are
confident of achieving the anticipated savings to our cost base. Since the start
of our new financial year on 1 July our construction activities are operating as
two divisions, building and infrastructure, targeting clearly defined market
sectors with the objective of building on our significant presence in each of
them. Both divisions start the new financial year with order books of over £1.1
billion, resulting in a total construction order book of £2.3 billion. Of this
total, 90% is in the public and regulated sectors and over 90% has been secured
on a non price competitive basis.


The building division has a good spread of work boosted by the financial close
of the Highland Schools PFI in April. Securing the project was a key objective
for Morrison, bringing £134m of work into the division over the next three
years. The project underlines our substantial presence in the education sector,
building on Galliford Try's existing portfolio of both individual projects for
universities and schools with the £192m Northamptonshire Schools PFI project
that reached financial close in the first half of the financial year.


Our infrastructure division is in a strong position. It is working, primarily
through long term frameworks, for most of the UK's water companies, Southern,
Thames, Anglian, United Utilities, Welsh, Yorkshire and Scottish, for whom we
have just agreed an extension to our existing framework which is expected to
provide another £70m of work over the next two years. The Morrison acquisition
has added a significant skill base in highways infrastructure, renewable energy
projects and remediation. These are all sectors with good growth prospects and
last month we were delighted to be awarded the land remediation contract for the
northern section of the Olympic Park in east London, which we expect to provide
work until 2010. We are also working on a number of highways projects under the
new 'early contractor involvement' contracts that suit our collaborative
approach to major construction projects.


Housebuilding


The housing market picked up in the second half of our financial year, and our
housebuilding division exceeded its sales targets in a market that, with the
limited use of incentives, remains at an acceptable level. Completions for the
year were up 24% at 1,054 at an average selling price up 2% to £212,000. We
ended the financial year with record sales carried forward of £78m, compared to
£65m last year.


The results will include four and a half months trading from Chartdale Homes,
acquired on deferred payment terms for £67m in February. We are pleased with the
progress made, with sales meeting expectations and the planning consents
outstanding at the time of acquisition now secured.


We have continued to selectively add to our landbank across our regions in the
south west, south east and eastern counties of England. We acquired 1,350 plots
with our acquisition of Chartdale and enter the new financial year with a record
landbank of 4,022 units, compared to 2,455 last year.


Our presence in the affordable housing market continues to grow. We were
delighted to announce in May that we were appointed preferred bidder by English
Partnerships for the joint development of a 17 acre site in Camborne, Cornwall,
which is expected to provide a total of 390 homes, both affordable and for sale,
as well as around 88,000 square feet of office, light industrial and community
buildings.


Preliminary Results


The preliminary results for the year to 30 June 2006 are expected to be
announced on Thursday 7 September 2006.



Further enquiries to:


Greg Fitzgerald, Chief Executive       Galliford Try plc           01895 855 219
Frank Nelson, Finance Director         Galliford Try plc           01895 855 226
David Rydell/Geoff Callow,             Bell Pottinger Corporate & 
                                       Financial                   020 7861 3232





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