TWOD Taylor Woodrow

RNS Number:9242V
Taylor Woodrow PLC
02 May 2007

                              AGM Statement

Ian Smith, Chief Executive of Taylor Woodrow, will make the following comments 
regarding current trading at today's AGM:

"In the UK, market conditions remain robust and our business reflects this. We
have achieved a slightly higher number of reservations in the year to date
compared to the equivalent period of 2006, along with a reduction in
cancellation rates. Site openings are on track to deliver the anticipated 5 per
cent increase in average sites and we remain confident in the prospects for the
full year. However, in line with our comments at the year end, we expect profit
timing in 2007 to be weighted to the second half.

Sales rates in North America overall are running at a higher level than in the
second half of 2006, although prices remain weak and market conditions continue
to vary considerably across our key markets. Conditions remain good in our
markets in Texas and Canada and the Arizona market is stabilising. However,
market weakness persists in California and particularly Florida and conditions
have worsened in certain submarkets within those states.

The Spring selling season for our high-rise tower division in Florida has been
very poor. While the locations of our sites are excellent the high-rise market
has weakened significantly and we have therefore taken the decision to save
costs by suspending sales efforts for this business until market conditions
improve. This decision will result in a one-off non-cash provision of #15.5
million relating to our land holdings in this sector. In addition, we intend to
take a further #9.5 million provision to reflect weakness in certain local
markets in Southern California and Florida.

We remain cautious in the land market across North America and have reduced our
level of spend compared to last year. However, we are ready to take advantage of
opportunistic deals as they might emerge later in the year and continue to be
confident in the prospects for the business in the medium-term.

As disclosed in our 2006 Report and Accounts, a jury trial in Florida awarded
damages against several US-based Taylor Woodrow subsidiaries totalling #22.7
million in November 2006. On 4 April 2007, the judge ruled on post-trial motions
filed by Taylor Woodrow and reduced the award to #13.9 million. We will be
pursuing an appeal, but have provided #16.6 million this year against the
potential liability including associated costs.

Spain and Construction continue to trade in line with expectations.

Overall, the strength of our performance in the UK is substantially offsetting
the impact of ongoing market weakness in North America and, excluding the
exceptional items in North America, the outlook for 2007 remains in line with
our expectations."

Norman Askew, Chairman of Taylor Woodrow, will make the following comments
regarding the proposed merger with George Wimpey Plc at today's AGM:

"The proposed merger of Taylor Woodrow plc and George Wimpey Plc to form Taylor
Wimpey plc announced on 26 March 2007 continues to progress extremely well and
according to plan.

The Board believes that the merger has compelling strategic and financial logic
for both companies. The merger will create a combined business with
significantly enhanced prospects in both the UK and the US. The Taylor Wimpey
Group will be the leading UK house builder in terms of completions, will have a
combined UK landbank of over 92,000 plots, and will be strengthened in the US
through the combination of highly complementary operations across some of the
most attractive US markets. In addition, shareholders will also benefit from
enhanced profitability through the delivery of significant cost savings and
acceleration of both companies' margin improvement plans.

Documents to shareholders are expected to be posted on Friday, 4 May 2007 and
the merger is expected to complete as scheduled around the beginning of July."

A conference call for analysts and investors will be held at 09:00 today.
The dial in number is +44 (0) 1452 562 717 and the conference ID number is
7976765.

                                     -ends-

Notes to editors:

Taylor Woodrow is a housing development group. Its primary business is the
development of sustainable communities of high quality homes across the UK and
in selected markets in North America and Spain. The company is listed on the
London Stock Exchange and in the year ending 31 December 2006 consolidated
revenue increased by 3% to #3.6bn. Taylor Woodrow announced its proposed merger
with George Wimpey Plc on 26 March 2007.


For further information please visit the company's website - www.taylorwoodrow.com

For further information please contact:

Taylor Woodrow
Jonathan Drake (Investor Relations)     0121 600 8394 / 07816 517 039
Ian Morris (Media Enquiries)            0121 600 8520 / 07816 518 767

Finsbury
James Murgatroyd / Clare Strange        020 7251 3801




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

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