BIE Birse Grp.

RNS Number:8524N
Birse Group PLC
13 July 2000


BIRSE GROUP PLC ("BIRSE")

Outcome of Arbitration process

Birse  announces  that it has been awarded #0.5 million by the  Arbitrator  in
respect  of  its Rhymney Valley Relief Road project.  The project,  which  was
completed  in  1992,  has  been the subject of arbitration  since  1996.   The
position  on  interest  and  costs  remains  to  be  determined  as  does  the
possibility  of  appeal.  At 30th April 2000, Birse included  in  its  balance
sheet as a debtor under the heading "amounts receivable under contracts" a sum
of #8.1 million in respect of this project.

On the basis of this award and subject to the determination regarding interest
and  costs  and the outcome of any appeal, there is likely to be a significant
asset  write-off  in  respect of this project which would  be  charged  as  an
exceptional item in the results for the six months to 31st October 2000.

Peter Watson, Chief Executive of Birse, commenting on the award said:

"The  factors  giving  rise to this dispute originated  in  the  early  1990s.
Although  the award is disappointing, in no way does it represent the  quality
of our ongoing business".

For further enquiries please contact:

Birse Group plc
Peter Watson, Chief Executive                01652 633222

Financial Dynamics
Tom Baldock                                  020 7831 3113

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