Gleeson Homes Restructures

Gleeson(M J)Group PLC
15 April 2002

                           GLEESON HOMES RESTRUCTURES



M J Gleeson Group plc, the construction services, homes and property group,
announces a restructuring of its Homes Division.  It follows the
recently-reported operating loss by Gleeson Homes in the first half of its
current financial year (ended 31 December 2001) and the appointment at the end
of October of a new Divisional Managing Director, Terry Massingham.

In summary, future Homes operations in the North of England will be managed from
the NW Regional Office in Haydock, Lancashire, whilst the NE Regional Office in
Sheffield will be closed.  At the same time, the existing SE Region based in
Worcester Park, Surrey is to merge with the SW Region in Marlborough, Wiltshire
at a new location within the M3/M4 corridor.

In making the announcement, Terry Massingham stated: 'The restructuring in no
way alters the planned expansion of the Homes business in future years. It does,
however, more accurately reflect the scale of the business, and will permit
improved cost effectiveness in each geographical area. This is the culmination
of the extensive operational review we have undertaken, and we believe that the
leaner organisation arising from it will ensure the continued growth of the
Homes business'.

As a result of the restructuring, it is likely that there will be some 30
redundancies out of a total staff of about 150.  A number of staff from the
Sheffield office will be absorbed in the recently created Regeneration Division
based in Sheffield which is involved closely with Government-assisted urban
regeneration schemes and social housing PFI schemes.  A number of other
vacancies may be available elsewhere within the Gleeson Group.  Consultations
have begun with affected staff. The cost of the restructuring was provided for
in the interim results.



Notes to Editors:



1.        In his Chairman's Statement on the Group's interim results on 27 March
2002, Executive Chairman Dermot Gleeson said that on turnover for the half year
ended 31 December 2001 8.5% lower at £45.3m (2000:  £50.1m), Gleeson Homes made
an operating loss of £1.5m (2000 profit: £3.2m).  The Division's poor
performance reflected substantial cost overruns which had been identified in
Terry Massingham's review and the need to provide for the consequences of a
refocused policy.  This will concentrate on new build on brownfield land, rather
than the refurbishment of existing buildings, and has necessitated the writing
off of costs on a number of aborted projects.  The Division expects to sell
around 500 units during the current financial year.



2.        Terry Massingham, Managing Director of Gleeson Homes, was previously
Managing Director of Alfred McAlpine Homes Southern.  He has worked in the
residential sector for over 25 years with a number of major housebuilders, and
is a former Managing Director of Bryant Homes Weald Ltd and Trencherwood Homes.
He was appointed to the M J Gleeson Group plc board in January 2002.



3.        M J Gleeson Group plc is a construction services, homes and property
company.  Its construction activities principally comprise civil and process
engineering and general building, its housebuilding is primarily on brownfield
sites, whilst its property activities include both investment and development.
Gleeson is the UK's leading contractor in the water industry, has more
experience of PFI work than any other contractor of similar size and is a member
of the UK Major Contractors Group.



The Group is headquartered at North Cheam, Surrey and has a further 18 offices
strategically positioned around the country.



Founded in 1903, Gleeson's shares have been fully listed on the London Stock
Exchange since 1962.  In the year to 30 June 2001, the Group made a pre-tax
profit of £19-million on a turnover of £422-million and at that date had net
assets of £146-million.




Enquiries:
M J Gleeson Group plc                                          020-8644 4321
  Dermot Gleeson (Executive Chairman)
  Terry Massingham (Managing Director - Homes)

Bankside Consultants Limited
  Charles Ponsonby                                             020-7444 4166




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