BIE Birse Grp.

RNS Number:1559T
Birse Group PLC
27 October 2000


Birse Group plc ("Birse") is currently engaged in a number of claims resulting
from contracts entered into by Birse Construction Ltd. On 13 July 2000, Birse
announced that following an arbitration process over work carried out on the
Rhymney Valley Relief Road project, there was likely to be a significant asset
write-off that would be charged as an exceptional item in the results for the
six months to 31 October 2000.

Birse has now been made aware of the likelihood of a further material write-
off from another contract subject to litigation.  The value attributed to that
contract in the balance sheet of Birse as at 30 April 2000 was #16 million.
Any write-off will be charged as an exceptional item in the results for the
year ended 30 April 2001.


Peter Watson, Chief Executive of Birse, said:

"We are naturally disappointed that Birse's chances of recovering in full the
costs associated with this old contract have reduced. Whilst a write-off will
reduce shareholders funds, the Group continues to enjoy the support of its
bank and believes it has sufficient facilities on an ongoing basis.  We remain
confident that the factors giving rise to this type of dispute are not a
feature of business now being secured."


Enquiries

Birse Group plc               0113 245 0994
Martin Budden

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