Regeneration Agreements

Gleeson(M J)Group PLC
17 April 2007


Tuesday 17 April 2007

                              MJ GLEESON GROUP PLC

            Financial close achieved on Stanhope Estate, Ashford PFI

Gleeson (GLE.L), which is transforming itself into a specialist in housing
regeneration, announces that its Chrysalis Consortium has signed Development and
Project Agreements with Ashford Borough Council in Kent for the regeneration of
the Stanhope Estate - importantly, Gleeson's first regeneration scheme in the
South of England.

Pursuant to the Development Agreement, Gleeson Homes & Regeneration South will
undertake the development of 442 new homes, together with a commercial centre
comprising three retail units and a pub/restaurant, together valued at £50m. The
development will take place on 10 sites, in four phases, over five years. The
split of new homes is 70% (309 units) to be affordable (social rent and shared
ownership) for sale to Moat Housing Group and 30% (133 units) for private sale.

The Project Agreement covers the refurbishment, maintenance and management of
the retained dwellings and public open space, together with the creation of a
new Stanhope Community Centre. Pursuant to this Agreement, whose term is 30
years, Gleeson's subsidiary, Gleeson Services, under its Powerminster brand,
will provide facilities management services, valued at £23m.

Through its PFI-focused subsidiary, Gleeson Capital Solutions, Gleeson created
the Chrysalis Consortium to bid for this Housing Revenue Account (HRA)
PFI-funded scheme. Gleeson's partners in the Consortium are the Kent-based Moat
Housing Group, delivering housing management services, and Nationwide Building
Society, funding the scheme. Nationwide and Gleeson are partners in the
successful regeneration project at Grove Village in South Manchester, a £103m
eight year programme which was the first substantial Local Authority housing
PFI, with a similar HRA structure to the Ashford PFI.

Dermot Gleeson, Chairman, stated 'When considering PFI-funded regeneration
schemes, our ultimate aim is to secure long-term work for Gleeson Homes &
Regeneration in new build housing for sale and for Gleeson Services in
installation work and maintenance, whilst securing equity returns via
participation in the PFI investment. The Ashford scheme fully meets those
objectives. Now that Ashford is underway, Gleeson looks forward to building on
the success and high potential of its regeneration business in the North of
England by involvement in further schemes throughout the country.'



                                     -Ends-


Notes for Editors:

In addition to the Stanhope Estate in Ashford, Gleeson is currently active at
five regeneration sites: Grove Village in South Manchester, Beswick in East
Manchester, Norfolk Park in Sheffield, Cleveland Street in Liverpool, and
Northumberland Street in Liverpool.

Four further regeneration sites, bringing the total to 10, are expected by the
Board to be active in the year to 30 June 2008: Cheshire Care Homes, North
Huyton in Merseyside, Gorton Monastery in East Manchester, and St. Mary's in
Oldham. In addition, Gleeson is the preferred developer for the whole of the
City Centre South Zone in Liverpool (of which Cleveland Street and
Northumberland Street are parts), which potentially involves the development of
1,000 acres in a programme extending to 2017.

Photograph:

A photograph of the Stanhope Estate, Ashford is available from Charles Ponsonby
at Bankside Consultants on [e-mail].

Enquiries:

M J Gleeson Group plc                                     01252-360 300
Paul Wallwork (Group Chief Executive)
Chris Holt (Financial Director)

Bankside Consultants Limited
Charles Ponsonby                                          020-7367 8851




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