Chairman's Statement

McInerney Holdings PLC
22 June 2001


                            McINERNEY HOLDINGS PLC


                             CHAIRMAN'S STATEMENT


Before proceeding to the formal Resolutions on the Agenda, I would like to
give you some information on recent developments and future prospects.


As I said at last years AGM, from this year, we will refer to our performance
figures in Euros rather than in Irish Pounds.


In 2000 we reported a record profit before tax of Euro 19.1 million an
increase of 35% on our 1999 figure of Euro 14.16 million. This constitutes a
solid performance by all the Group's established operating divisions and I
congratulate all concerned. These results set a challenging base for us for
future profit growth in the context of an undoubtedly quieter housing market.


An interim dividend of 3.5 cents per share was paid to shareholders in April
based on our 2000 result, in lieu of a final dividend, as is our practice.


The Group now has control of a quality, broadly spread land bank, which will
be sufficient to meet the projected targets of our Irish housing division over
the next number of years. Planning permissions on hand at year-end were 3,294
compared with 1,970 a year earlier. As a result of our strong land bank, we
have no requirement to purchase land for stock at present, unless it
represents an exceptional opportunity for the Group.


Our house building division was again a major contributor to the company's
growth. During the year, we built 652 houses and achieved improved margins on
our house building activities.


Demand for housing in Ireland remained strong in 2000 although since the third
quarter it has not been uniform. Well-located first time buyer houses continue
to sell strongly but house sales dependent on the trade up market have
experienced a slowdown. Our experience is that prices are either holding
steady or increasing slightly. Increasingly our target market is first time
buyers in urban areas. We expect to complete 239 sales in the first half. We
presently have 286 deposits on hands against a current target of 665 private
housing units for the full year. This will yield a good second half.


In recent years our contracting operations have been generating stronger
returns. We were particularly pleased with the increased profit in this area
in 2000. We have recently secured a number of lucrative local authority
housing contracts. It is expected these will contribute to profit in the
second half of the year from contracts with a value of around Euro 22 million.
We expect the housing investment programme of the Government in the National
Plan to provide further opportunities for this operational area.


Our commercial division, Hillview Securities, continues to perform well,
generating good returns through its development of industrial units,
particularly in the Dublin area. During 2000, Hillview commenced development
of the Millennium Business Park at Ballycoolin, Dublin. This project of 56,000
square metres will be developed in four phases. The first phase of 12,000
square metres has sold well and is expected to contribute to our profit stream
in the second half of 2001. While no sales closings have been recorded in the
first half, 15 of the target 18 units for the year are reserved. Hillview is
also developing the first phase of a smaller development of industrial units
at Little Island, in Cork.


Our Spanish operations, have made further progress over the past year. Strong
rental demand helped increase operating profits at Four Seasons Country Club,
Marbella. The successful freehold development of 72 apartments at Carib Playa
near Marbella will be completed later this year. Again, the bulk of the sales
completions will be in the second half.


It is with pleasure that I outline today, details of a strategic new
development for the Group in the Spanish market. The Group has secured a new,
substantial freehold development near the popular Marbella region. It is
located in a unique area encompassing a valley and a golf course. A
development of high quality apartments is planned and the Group intends
constructing 250 units over 3 years. The early indications from a pre-launch
of this project are for very strong demand indeed particularly from our
Northern European target market. Information on this and all our main projects
is available at the end of the meeting.


In relation to our activities in the UK, we intend to increase the rate of
capital investment there. This follows the purchase of William Hargreaves
Limited just over a year ago. The management team has been strengthened with a
Group Regional Director recently appointed. We are currently examining
additional acquisition opportunities with a view to expanding this operation.


The profit stream of the Group is becoming increasingly diversified while
simultaneously the Group has a continually growing capital base. It is the
intention of the Directors to continue the diversification programme by
investing additional capital in our UK and Spanish operations.


For the market reasons outlined earlier we expect the first half results to be
behind expectations with a good result in the second half. This is mainly due
to the number of start-up projects in the first half that will only start
contributing to our profits in the full year.


If any shareholder has any questions in relation to our Annual Report and
Accounts my colleagues and I would welcome the opportunity of answering them.


ROY FERRIS

Chairman


22 June, 2001