Castlepoint Car Park

Kier Group PLC
11 May 2006







                                                                     11 May 2006

                                 Kier Group plc





                       Castlepoint Car Park, Castlepoint





As reported in the press, Castlepoint Limited Partnership, the owners and
operators of the Castlepoint retail centre in Bournemouth, have issued a
statement regarding the rebuilding of the Car Park at Castlepoint.



Kier Build Limited, a wholly owned subsidiary of Kier Group plc, was the design
and build contractor for the construction of the retail centre including the car
park.  The design and construction of the car park were subcontracted to C V
Buchan Ltd, a subsidiary of Amec plc.  Hyder carried out the design for Buchan.



In November 2005 our client Castlepoint, announced the closure of the centre due
to its concerns over health and safety. Kier, as principal contractor, worked
around the clock to install temporary props allowing the centre to reopen fully
in mid January.  Kier has informed Castlepoint that the most appropriate
permanent solution is for the car park to be rebuilt.



Kier confirm that reconstruction should commence in 2007 and will be carried out
on a progressive basis thereby minimising any disruption to trading.



Kier are confident that they will be protected from any material financial
consequences resulting from these issues by the insurance arrangements which are
in place.



                                    - ENDS -







For further information, please contact:



John Dodds, Chief Executive

Kier Group plc                 Tel: [phone]



Deena Mattar, Finance Director

Kier Group plc                 Tel: [phone]




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