AGM Statement

Kier Group PLC
27 November 2000

                               
                 KIER GROUP plc AGM STATEMENT
                               
                               
Kier  Group plc, the major construction, support services  and
housebuilding  group, held its Annual General Meeting  at  the
Group's  head  office at Sandy, Bedfordshire on  Saturday,  25
November at 11.00 am.  The Chairman and Chief Executive, Colin
Busby, told shareholders that the growth achieved by the Group
in  its  year  to 30 June 2000 was continuing in  the  current
financial year.

In  Construction, growth in turnover was now likely to  exceed
last  year's 9.3%, with Kier Regional continuing to experience
strong demand in most parts of the UK; Kier Build was likewise
increasing its turnover, with the successful completion of its
Maidenhead   contract  for  Castlemore  and  the   anticipated
completion next month of Hairmyres Hospital, Scotland, for the
Group's PFI consortium.  Civil Engineering opportunities  were
at  last improving and Kier expected to see a recovery in this
activity.

International  Construction  was continuing  its  progress  in
eliminating operating losses, reduced last year to  £1.2m.   A
programme  was now in hand to alter the risk profile  of  this
business  by building on relationship and lower-risk forms  of
contract  work.  This programme would deliver  a  smaller  but
profitable international business that would complement Kier's
major position in the UK construction market.

Momentum  was continuing in the growth of the Support Services
operation, with the successful transfer earlier this month  of
London Borough of Islington's Building Services department  to
a Kier/Islington partnership company under 'Best Value'.

Mr  Busby restated Kier's commitment to continuous improvement
in  operating margins in Construction & Services with a target
of 1% in the current year, up from last year's 0.7%.

Turning  to the progress made in the Homes & Property segment,
Mr  Busby confirmed that Kier was not experiencing a reduction
in housing demand in any of its areas, where sales and forward
orders  to  the end of October were over 20% above last  year;
the  Group  was benefiting from its increased investment  last
year  in  housing land.  He was also able to report  that  the
local authority had resolved to grant planning permission  for
the   major  distribution  facility  being  developed  for   J
Sainsbury at Waltham Park in joint venture with Norwich Union.

The  PFI  team was progressing its scheme for the  West  Berks
Mental  Health  Trust towards financial close,  probably  next
spring.   If successful this would confirm the Group's leading
position  in  larger  health sector PFI projects,  with  three
hospitals due to commission, Hairmyres in 2001, Neath in  2002
and  West  Berks  in  2003.  The Group's Hairmyres  investment
would  produce  revenue in the second half of  this  financial
year.

Mr Busby concluded by telling the 108 shareholders present:

'The  Group consists of complementary businesses, all of which
have  good  prospects  for  growth this  year,  and  into  the
future.'

For further information please contact:
Colin Busby/Duncan Brand
01767 640111