Castlepoint Retail Centre

Kier Group PLC
02 December 2005

               
                                 Kier Group plc

                     Castlepoint Retail Centre Bournemouth


As has been reported in the press, Castlepoint Limited Partnership, the owners
and operators of the Castlepoint retail centre in Bournemouth, have taken the
decision to close the centre, due to their concerns over health and safety
issues with the car park.

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 CV
Buchan Ltd a subsidiary of Amec plc. Hyder is Buchan's designer.

Concerns over the car park structure have been raised, and Kier, Buchan and
Hyder have for some time been engaged with Castlepoint in addressing these
concerns.  In the interim, advice has been taken by the parties from a number of
structural engineers as to appropriate measures to ensure the safety of the
users of the car park. These have been implemented and are being constantly
monitored.  On the basis of this advice, none of the parties had felt it
necessary to fully close the car park; although a number of areas have been
periodically closed off whilst works have been undertaken.  We are not aware of
any material change in the condition of the structure which warrants Wednesday's
change in Castlepoint's approach.

We continue to work with Castlepoint to find a solution which will enable the
car park to be re-opened and are continuing our work towards a long-term
solution.

Prior to recent events, advice had been taken by the board of Kier Group plc
which indicated that there was no material financial consequence to the Group
resulting from these issues.  At this time, the board of Kier Group has no
reason to modify this view notwithstanding the decision of Castlepoint to close
the car park.


                                    - ENDS -


For further information, please contact:

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

Deena Mattar, Finance Director
Kier Group plc                      Tel: [phone]




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