BIE Birse Grp.

RNS Number:7953V
Birse Group PLC
25 February 2004

Wednesday, 25 February 2004



                                 PRESS RELEASE

                   BIRSE GROUP PLC ("Birse" or "the Company")

                  SUCCESSFUL RESULT TO CITIBANK ADJUDICATION



In the interim announcement for the six months ended 31 October 2003 released on
11 December 2003, Birse commented on the adjudication process regarding the
contract for construction services with CIB Properties Limited, a Citibankgroup
company ("Citibank"), for its new data centre facility at Riverdale, Lewisham.

By way of a decision published on 24 February 2004, the adjudicator determined
that Birse should pay Citibank approximately #2.1 million.  This decision is
open to challenge but only by reference to arbitration or litigation.  Birse is
able to satisfy in full its liability arising from this adjudication from
existing bank facilities.

The costs incurred by Birse in defending the adjudication are approximately #2
million.  These costs and the award will be charged as an exceptional item in
Birse's results for the year ending 30 April 2004.  The underlying trading
performance of the business continues in line with expectations.

Peter Watson, ExecutiveChairman of Birse, commented "This decision awards only
a fraction of the amount claimed by Citibank and justifies the approach taken by
the Board in respect of this complex claim.  In addition, this decision removes
a high degree of uncertainty over the business and allows us to move forward
with greater confidence.  As reported in the interims, the Group is in a good
position to progress further from the solid platform established over the last
three years."

                               -  ends  -

Enquiries:

Peter Watson, Executive Chairman                      Tel:  01302 768 078
Martin Budden, Group Managing Director
Birse Group Plc


Peter Otero                                           Tel:  020 7831 3113
Financial Dynamics




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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