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Keller Group plc ("Keller" or "the Group"), the international ground engineering specialist, is today announcing its half-year trading update for the six months ending 30 June 2007, in advance of its Annual General Meeting, to be held at 11.00 a.m. today.

Overview

Trading in the first five months of 2007 has been excellent, with continued strong sales and an improvement in margins over the comparable period last year. In light of this, the Board now expects that the Group's results for the half year ending 30 June 2007 will be ahead of last year's very strong first-half.

The order book is at an all-time high, buoyed by the recent award of some major contracts which have been announced separately this morning, and many of our markets continue to offer promising opportunities.

Divisional Review

US
Our US businesses have continued the very good performance seen in 2006, helped by continued strength in the commercial and public infrastructure sectors of the US market.

This pleasing performance has been consistent across all four foundation contracting businesses with Anderson, the most recent of the US businesses to join Keller, making an impressive first-time contribution.

As expected, given the severe decline in the residential sector which currently shows no sign of abating, Suncoast's first-half trading is not as strong as last year. However, management has taken full advantage of buoyant demand for its high-rise products, whilst continuing to deliver operational improvements, thus in part limiting the impact of the residential downturn.

Continental Europe & Overseas
The Continental European & Overseas business is having an excellent first half. As expected, margins in Spain have recovered and our businesses in Eastern Europe continue to thrive. After a slow start, Germany is having a better second quarter.

High levels of construction spending and our increased strategic focus in the Middle East are benefiting our business in this region. We expect to be extremely busy here for the remainder of the year with current work in Bahrain and Dubai and, as announced separately today, a recently awarded c.US$30m (£15m) contract for the Al Raha Beach development in Abu Dhabi and three contracts with a total value of c.US$80m (£40m) for the new Saudi Kayan petrochemical complex in Saudi Arabia*.

UK & Australia
After a quiet first quarter in the UK, both sales and orders have picked up in recent months and KGE's foundation support division in particular is on a sound footing for the remainder of the year. Systems Geotechnique, the specialist drilling and grouting contractor acquired in April, has made a promising start in its first three months under Keller's ownership. Makers' performance, however, has been below expectations.

In Australia, where we have continued to trade extremely well, our leading market position is helping our businesses to take full advantage of good opportunities, particularly in the infrastructure sector.

* Saudi Kayan contracts awarded to Keller's 65%-owned Saudi subsidiary.

Notice of Interim Results

Keller intends to announce its interim results on Monday, 20 August 2007.

Commenting on the half-year trading update, Justin Atkinson, Chief Executive of Keller, said:

"Trading in the first five months of 2007 has been excellent and the Board now expects that the Group's results for the half year ending 30 June 2007 will be ahead of last year's very strong first-half.

"A good contribution from our recent acquisitions and an improvement in margins over the comparable period last year are both contributing to this progress and an alltime high order book creates a strong platform as we move into the second half of the year."

For further information, please contact:

Keller Group plc	www.keller.co.uk
Justin Atkinson, Chief Executive	020 7616 7575
James Hind, Finance Director
Smithfield
Reg Hoare/Rupert Trefgarne	020 7360 4600