Acquisition

Kier Group PLC
02 February 2004




                                 KIER GROUP PLC

                      ACQUISITION OF TUDOR HOMES FOR £15.4M

Kier Group plc, the major construction, support services, homes and property
group announces that it has acquired the business of Tudor Homes, a regional
housebuilder operating in South Lincolnshire.

Allison Homes Eastern (a subsidiary of Kier Group) has acquired land and work in
progress assets from Tudor Homes (East Anglia) Limited and certain related
assets from an associated partnership for £15.4m in cash, representing the value
of these assets. The acquisition is being funded from Kier's cash balances and
banking facilities.

The 350 plots with planning consent and approximately 75 plots of strategic land
being acquired are located in South Lincolnshire and North Cambridgeshire and
will be integrated with Allison Homes' operations under its current management
team.

John Dodds, Chief Executive of Kier Group, said:

"The acquisition of the land and work in progress assets of Tudor Homes
continues our strategy of seeking growth in our housing operation by acquisition
of private housebuilders at asset value. It provides an "in-fill" to Kier
Group's current housing operations, widening and enhancing Allison Homes' area
of activity".

Kier Group will be announcing its Interim Results for the six months to 31
December 2003 on 22 March 2004.

                                    - ENDS -

For further information, please contact:

John Dodds, Chief Executive
Kier Group plc                                  Tel: [phone]

Caroline Sturdy
Sarah Landgrebe
Bell Pottinger Financial                        Tel: [phone]




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