AGM Statement

Keller Group PLC
22 June 2006





For immediate release Thursday, 22 June 2006

                                Keller Group plc

                   AGM Statement and Half-Year Trading Update

Overview

Keller Group plc ('Keller' or 'the Group'), the international ground engineering
specialist, is today announcing its half year trading update, for the six months
ending 30 June 2006, in advance of its Annual General Meeting, to be held at
11.00 a.m. today.

As announced on 2 May 2006, the results for the first quarter of 2006 were
exceptionally good, with strong sales growth and significantly higher margins
than in the same period last year. This outperformance has continued throughout
the second quarter.

In addition, the second quarter results will be flattered by the receipt of a
number of claim settlements in the US totalling about £5m, all of which relate
to jobs undertaken in prior years. As a consequence, the Group's first half
results will be even better than previously anticipated.

Order intake has also continued to be strong; the current order book is
equivalent to six months' budgeted sales, which compares to less than five
months' a year ago.

In light of the very strong performance in the year to date and the record order
book, the Board now believes that the Group's results for the year as a whole
will be ahead of current market expectations. The unusually high claims income,
together with the benign winter weather conditions in the US, mean that that the
full year results are likely to be more first-half weighted than in previous
years, with just over half the full year's profit falling in the first half.

Divisional Review

US
All four US businesses have continued the excellent performance seen in the
second half of 2005, assisted by unusually mild weather conditions in January
and February. Also, as noted above, the first half will be flattered by a number
of large claim settlements.

The first-half US result has also been boosted by Donaldson, the New England
business acquired in September 2005. Donaldson has now been successfully
integrated and will make an impressive first-half contribution, once again
demonstrating Keller's ability to deliver value through successful acquisitions.

Whilst evidence of a cooling in the US housing market abounds, this has not as
yet impacted on the performance of Suncoast, which has continued to grow its
business, particularly in its newer markets along the West Coast.

Continental Europe & Overseas
The Continental European & Overseas business has had an excellent first half,
helped by good performances in France, Austria and Poland and continued strong
sales growth in Spain, albeit with some weakening of Keller-Terra's initial
excellent margins. The results are expected to be further underpinned by
improving market conditions and margins in Germany.

Overseas, Keller has benefited from continuing high levels of investment in the
Middle East, whilst the Group's business in the Far East has had a solid first
half.

UK & Australia
In the UK, Keller's foundation support division has had a confident first half
and the geotechnical division is starting to see increased levels of activity.
Phi, the Group's recent UK acquisition completed in April 2006, has made a
positive start. Keller's other UK business, Makers, will return an improved
result compared with the second half of last year.
Keller's Australian business has continued to trade well in strong market
conditions.

Keller intends to announce its interim results on Monday, 21 August 2006.

Commenting on the half-year trading update, Justin Atkinson, Chief Executive of
Keller, said:

'The first half has been another period of excellent organic growth in all our
main markets. This, together with our recent acquisitions of Donaldson in the US
and Phi in the UK and our record order book, give me additional confidence that
Keller will now deliver another year of strong growth.'

For further information, please contact:

Keller Group plc
Justin Atkinson, Chief Executive                       020 7616 7575
James Hind, Finance Director

Smithfield                                             020 7390 4600
Reg Hoare/Rupert Trefgarne




                      This information is provided by RNS
            The company news service from the London Stock Exchange