Laing Homes

1. Laing Homes David Livingstone

2. Disclaimer This presentation is being made only to and is directed at (a) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the "Order") or (b) any other persons to whom it may otherwise lawfully be communicated, falling within Article 49(1)of the Order (all such persons being referred to as "relevant persons"). Any person who is not a relevant person should not act or rely on this presentation or any of its comments. The financial information set out in this document does not constitute the Company's statutory accounts. Statutory accounts for 2003, which received an auditors' report that was unqualified and did not contain any statement concerning accounting records or failure to obtain necessary information and explanations, have been filed with the Registrar of Companies.

3. Integration into GWUK November 2002 Acquired by GWUK Paul Healey appointed DMD at MK January � Dec 2003 Six regions contributing to overall business January 2003 Laing introduced to procurement processes Benchmarking introduced March 2003 MK overhead reduced June 2003 PQA introduced EDG devolved into regions December 2003 975 PD units delivered to profit

4. Integration into GWUK January 2004 Six regions reduced to five: North Thames South East Thames South West Thames Thames Valley Midlands March 2004 Paul Healey retires April 2004 David Livingstone becomes DMD � joined George Wimpey in 1973 Confirmation of price points to remove high end exposure July 2004 Laing HQ closure announced September 2004 Full integration of bench marking and best practice

5. Shared Values Safety Customer satisfaction Referral cultivation Performance delivery Value from scale procurement sharing knowledge common processes

6. Laing Homes A premium product, driven by local management Higher average selling price than George Wimpey better locations with larger plots higher specification but not radically different greater emphasis on design Like Audi and VW

7. Laing Homes However Had moved into high end premium market Strategy has been to significantly reduce exposure to products over �750,000 plan new product over �500,000 carefully

8. Opportunities for the Future Working out poor historical sites Margin improvement through �sweating� overheads and build cost efficiency Continued improvement through sharing of best practice Laing learning from GW benchmarking and build cost reduction programmes GW learning from Laing land consultation and PR Improving land bank opportunities to share large sites better cash management - increased opportunities Capacity to grow business across the country

9. Existing businesses -focus on margin improvement Reduction in build costs benchmarking value engineering Improving land purchase terms Volume growth within existing businesses

10. New businesses - growth potential First steps on geographical growth underway model defined target markets identified Liaison with existing George Wimpey businesses can assist growth and use of assets Introduce three new businesses Eastern - Essex Western - Bristol Scotland - Edinburgh Limited overheads

11. Laing Homes Current Businesses

12. Laing Homes potential - first steps

13. Scale of volume opportunity Long term potential is for a business to compete in size with GW, however Speed of growth within our own control Dependent on general market conditions land market Not pushing for volume growth at any cost

14. Conclusions Laing Homes is now well positioned  restructuring successfully complete moving away from high priced markets further programme of cost reductions in hand improving landbank to support growth of existing businesses sensible strategy of volume growth as market conditions allow

15. Laing Homes SW Thames Gerry McCormackManaging Director

16. Introduction Structure Area of operation Current and future outlets Business performance Cost excesses Laing Homes within George Wimpey UK PQA Staff Customers

17. Structure Total monthly paid staff 67 Weekly paid staff 14

18. Area Map

19. Current Outlets

20. Future Outlets

21. Business Performance

22. Cost Excesses

23. Laing Homes within GWUK Culture Commitment to growth Specialist meetings Benchmarking and cost control Improved margins PQA

24. Production Quality Awards (PQA) Tours throughout the UK PQA panel 50 sites visited What was learned?

25. Staff (South West Thames) Monthly and weekly paid staff Building in Service Excellence (Core Values) Business Change Team (B.C.T.) Investors in People Staff Communication Induction programme Newsletters Welcome days Staff conference Employees satisfaction survey

26. Customers Customer satisfaction monitoring Growing Wiser Quality and service Clean and ready

27. The Future Outlet growth 2007/8 10-15 outlets Turnover growth 2008 �120m PBIT growth 90% People growth 10% Overhead efficiency

28. A Clear Strategy of Margin Improvement and Growth

29. GuildfordQueen Elizabeth Park

30. Guildford � Queen Elizabeth Park History Former use Acquired in March 2001- �46m Planning Trail Consultation process/ community planning week Secure planning Continued liaison with public Sales launch April 2002 Output per year - 50 units Laing Homes � consortium leader

31. The Community Total site residential 525 35% Affordable Housing Key Worker/ Shared Ownership and Housing for rent Commercial � 100,000 sqft Office accommodation Current facilities Nursing Homes Health and Fitness (Esporta) Community Hall Doctors Surgery Caf�/ restaurant and food store (Budgens)

32. The Community Section 106 benefits Environmental/ Infrastructure improvements to local area - �800,000 Park and Ride - �1.6m Bus route - �700,000 Travel vouchers - �105,000 Green Travel Plan Recycling materials Demolition materials retained on site 17 acres of woodland retained and improved

33. The Product Types Price Point 5 Bedroom �740,000 4 Bedroom �600,000 3 & 4 Bedroom �450,000 3 Bedroom �350,000 3 Bedroom �295,000

34. Awards

35. Cost Trail

36. The Site Team 4 teams Team Leaders Dave Livingstone Gerry McCormack Paul Hogarth Bruce Heffer

37. Laing Homes SW Thames Gerry McCormackManaging Director