GEORGE WIMPEY PLC

1. GEORGE WIMPEY PLC Acquisition of McAlpine Homes 14 August 2001

2. Programme • Introduction John Robinson • Acquisition benefits and transaction structure Peter Johnson • Price, financing andstructure Andrew Carr-Locke • Integration plan Keith Cushen • Concluding comments John Robinson

3. Disclaimer Any statement regarding earnings enhancement contained in this presentation does not constitute a profit forecast and should not be interpreted to mean that the earnings per share for any period following the acquisition will necessarily be greater than that for the relevant preceding financial period. No reliance may be placed for any purpose on the information contained in this presentation or on its completeness. No representation or warranty by any person, express or implied, is made or given as to the accuracy of the information or opinions contained in this presentation and liability is excluded for any such information or opinions. This presentation does not constitute or form part of any offer or invitation to purchase or subscribe, or any solicitation of any offer or invitation to purchase or subscribe, nor does it constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer or invitation to sell or issue, any securities, nor should this presentation or any part of it form the basis of what will be relied on in connection with any contract therefor.

4. Acquisition benefits and transaction structure Peter Johnson

5. Acquisition of McAlpine Homes • Acquisition price of £461 m represents a premium of ~9% to net asset value • Deferred consideration arrangement allows Wimpey continuing operational flexibility • Private transaction has allowed Wimpey to perform full due diligence and plan for integration • Accelerates the process of re-focussing Wimpey on higher priced markets and products • Earnings enhancing from completion* *this statement should not be interpreted to mean that future earnings per share of Wimpey following the proposed acquisition will necessarily be higher than historical earnings per share

6. Agenda • Background to the proposed acquisition • Rationale for the acquisition • Benefits of the acquisition • strategic benefits • financial benefits • risk management • Summary business plan • The impact on Wimpey

7. Background to the proposed acquisition Commitment to deliver shareholder value • New executive team in last nine months • Balances experience and new ideas • This team has: • established a new business culture • delivered on first stage of improvement plan • achieved momentum for change

8. Background to the proposed acquisition • Stage 1 - integrate existing UK businesses Deliver £20 m overhead savings: achieved • Stage 2- gain benefits of scaleDeliver £15 m of build cost savings: in hand • Stage 3 - shift business mix towards higher priced markets and products: begun McAlpine Homes enables Wimpey to accelerate its progress and secure immediate financial benefits

9. Rationale for the proposedacquisition An attractive opportunity • Accelerates implementation of Wimpey’s strategy to improve margins in UK housing • Gives immediate positive benefit to margins and earnings per share • Acquire better located landbank in one-step at a sensible price • Involves low execution risk

10. Summary business plan • Combined business to run at reduced number of annual completions • McAlpine businesses in Hampshire and the North-West to form new Wimpey regions • Cumbria unlikely to be retained • Other businesses to be fully integrated into existing Wimpey regions • Solihull Head Office to be closed • Reduced land spend over next twelve months

11. Strategic benefits Improves product and geographic mix • Higher average selling price: McAlpine £145k* vs Wimpey £118k • Higher future selling prices on current landbank: McAlpine ~£160k vs Wimpey ~£130k • Improved regional mix: McAlpine 52% of sales in south vs Wimpey 34% • Provides presence in good primary locations *excluding Cumbria

12. Strategic benefits Improves landbank • Short-term landbank rises to ~3.2 years after geographical re-focussing and reduced land spend • ~56% of McAlpine’s* short-term landbank is in the south vs ~34% for Wimpey • McAlpine landbank contains more prime locations • Strategic landbank contains high potential margin sites; ~50% is in southern England *excluding Cumbria

13. Financial benefits Enhances earnings and margins • EPS enhancing from completion*, even after fair value adjustments and discounted interest • £18 m annual cost savings from integration of head office and regions into Wimpey • Potential for further cost savings from procurement and benchmarking • Existing sites with planning support profitable volume growth for Wimpey in 2001 and 2002 * this statement should not be interpreted to mean that future earnings per share of Wimpey following the proposed acquisition will necessarily be higher than historical earnings per share

14. Risk management • Business risk low: through due diligence and warranties • Execution risk low: recent experience and detailed business plan • Market risklow: good national spread, limited exposure to Central London, national affordability remains good • Financial risk managed: through deferred payments, year-end gearing stays below 50%

15. Indicative asp Geographic Mix Initial Target** Wimpey McAlpine Homes* Wimpey McAlpine Homes* Impact on Wimpeyregional mix and ASP South East 24% 27% £144k £170k ~25% South West 10% 25% £110k £120k ~15% Midlands 24% 20% £130k £240k ~25% North 29% 28% £100k £115k ~25% Scotland 13% 0% £90k n/a ~10% UK Total 10,226 2,708 £116k £145k ~12,500 Regional Offices 21 10 23 NB Existing mix and price data refer to 12 months to June 2001 * excluding Cumbria **these are indicative numbers only and not a forecast

16. Strategic Acres Target Short term Life (years) ** Short-term Plots Wimpey McAlpine Homes* Wimpey McAlpine Homes* Impact on Wimpeylandbank South East 26% 37% 20% 52% ~3.0 South West 8% 19% 18% 7% ~3.0 Midlands 21% 19% 20% 13% ~3.3 North 27% 25% 11% 28% ~3.2 Scotland 18% 0% 31% 0% ~3.2 UK Total 31,920 7,819 10,700 5,800 ~3.2 NB 1. Existing landbank data refers to position at June 2001 2. McAlpine strategic landbank after assumed success factor *excluding Cumbria **These are indicative numbers only and not a forecast

17. Newcastle Leeds Liverpool Manchester Birmingham London Bristol Combined geographiccoverage(excluding Scotland)

18. Improved South East presence South East Norwich Sites Cambridge Ipswich Milton Keynes Colchester Chelmsford St Albans Newcastle Slough LONDON Rochester Leeds Basingstoke McAlpine Guildford Liverpool Manchester Maidstone George Wimpey Southampton Birmingham London Bristol

19. Norwich Norwich Norwich Cambridge Cambridge Cambridge Ipswich Ipswich Ipswich Milton Keynes Milton Keynes Milton Keynes Colchester Colchester Colchester Chelmsford Chelmsford Chelmsford St Albans St Albans St Albans Newcastle Slough Slough Slough LONDON LONDON LONDON Rochester Rochester Rochester Leeds Basingstoke Basingstoke Basingstoke McAlpine Guildford Guildford Guildford Liverpool Manchester Maidstone Maidstone Maidstone George Wimpey Southampton Southampton Southampton Birmingham McAlpine London Bristol George Wimpey Improved South East Product Mix South East Sites 5 Bed Det. Sites

20. Improved North West Presence Blackburn Southport MANCHESTER Liverpool Chester Sites McAlpine George Wimpey 5 Bed Det. Sites McAlpine George Wimpey

21. GCHQ, Cheltenham - Strategic Potential Newcastle CHELTENHAM Leeds Liverpool Manchester Site GCHQ Birmingham Town Cheltenham Gross Area 78 Acres London Bristol Net Area 52 Acres

22. Cambourne, Cambridge Newcastle Leeds Town Cambourne Liverpool Manchester Nr Cambridge County Birmingham 1045 Acres Gross Area Net Area 350 Acres London Bristol McAlpine Share 117 Acres Expected Plots 809

23. Price, financing and structure Andrew Carr-Locke

24. Terms of proposedacquisition • Acquisition price is book value plus £50 m premium • Estimated book value at completion is £411 m • Premium likely to be fair valued to land - unlikely to be goodwill on the balance sheet • Deferred consideration includes interest of £12 m – half in 2001, half in 2002 • After netting off discounted interest, premium to book value is ~9%

25. Transaction multipleattractive McAlpine Homes £411m Consideration 461 1.12 x Less: Deferred interest element (12) 449 1.09 x • Premium to book value attractive (1) Net asset multiples exclude intra-group debt Net Assets (1) Enterprise Value £m

26. Deferred terms • £150 m cash paid on completion • Remaining ~£311 m paid in instalments: £50 m 31 Dec 2001 £50 m 2 Jan 2002 £50 m 4 Mar 2002 £51 m* 7 Jul 2002 £110 m 30 Aug 2002 • Interest cover comfortable • Year-end gearing expected to remain below 50% *subject to any adjustment of the consideration

27. Financing the acquisition • Financing from two main sources: • new loan facilities of £285 m • Wimpey to reduce the combined expenditure on land by c£200 m by the end of 2002 • Reduced spend on land reflects re-focussing of geographic presence, rather than steps to reduce debt level

28. Firm cost savings andsynergies • £18 m annual overhead savings to be achieved by 2002 • Estimated headcount savings of c450 • One-off exceptional cost of £14 m • Synergy benefits to come from: • reduction in central overheads • rationalisation of regional office structure • decentralisation of operational head office functions such as design and procurement

29. Financial effects • Volumes will be reduced from combined levels • Reductions will be mainly in lower asp markets • Substantial overhead cost savings will be achieved • Operating margins will improve • Landbank will grow in both life and value - 3.2 years compared to current 3.0 years • Plot cost will also rise due to higher square footage and better locations

30. Integration plan Keith Cushen

31. Business plan • Targeting a reduction in number of annual completions by c1,000 from 2000 level • Combined business to operate from 23 regional offices (combined total 32) • Two new Wimpey regions to be created: • southern regions to be restructured • new City Centre business in North-West • Cumbria unlikely to be retained • Solihull Head Office to be closed • Reduced land spend to the end of 2002

32. Indicative asp Geographic Mix Initial Target** Wimpey McAlpine Homes* Wimpey McAlpine Homes* Impact on Wimpey:regional mix and asp South East 24% 27% £144k £170k ~ 25% South West 10% 25% £110k £120k ~15% Midlands 24% 20% £130k £240k ~25% North 29% 28% £100k £115k ~25% Scotland 13% 0% £90k n/a ~10% UK Total 10,226 2,708 £116k £145k ~12,500 Regional Offices 21 10 23 NB existing mix and price data refer to 12 months to June 2001 * excluding Cumbria **these are indicative numbers only and not a forecast

33. Integration plan • Fully integrate as rapidly as possible • Maintain new “decentralised” business model • Appoint third regional chairman • Retain transitional staff to support integration and achievement of build cost benefits • Strengthen business with key McAlpine staff • Regional landbanks better balanced • Southern regions still have capacity to grow

34. Offices Target completions Completions per Office Landbank (units) Landbank (years) Strategic Landbank (acres) Critical mass achieved across all regions South/S West 3 ~1,800 ~600 5,800 ~3.0 2,500 South East 6 ~3,100 ~510 9,200 ~3.0 4,900 Midlands 5 ~2,500 ~500 8,300 ~3.3 2,600 North 7 ~3,700 ~530 12,000 ~3.2 2,500 Scotland 2 ~1,300 ~6504,200~3.22,500 Total 23 ~12,500 ~54039,500~3.215,000 Source: Wimpey estimates

35. Due diligence completed • Detailed due diligence carried out • Landbank and forecast margins reviewed • Team comprised over 40 management from regional offices as well as Head Office • Head Office processes reviewed • McAlpine management helpful and supportive • Assisted detailed integration planning: reduces execution risk

36. Firm cost savings andsynergies • £18 m annual overhead savings to be achieved by 2002 • Estimated headcount savings of c450 • One-off exceptional cost of £14 m • Synergy benefits to come from: • reduction in central overheads • rationalisation of regional office structure • decentralisation of operational head office functions such as design and procurement

37. Potential further integration benefits • Productivity and build cost improvements through benchmarking and transfer of best practices • Improved procurement and strengthened purchasing power • Focus on increasing value per customer through upgrade options • Strengthened operational / regional management teams • Offers significant further potential financial upside

38. Concluding comments John Robinson

39. Concluding comments • An excellent deal for Wimpey and its shareholders • Terms and transaction structure financially attractive • Accelerated the geographical and product re-positioning of Wimpey • Execution risk managed by full due diligence process and integration planning

40. Timetable and approvals • Proposed Acquisition conditional on acceptance by Wimpey and McAlpine shareholders • Proposed Acquisition is recommended by the Boards of Wimpey and McAlpine • Completion expected to take place on 1 October

41. GEORGE WIMPEY PLC Acquisition of McAlpine Homes 14 August 2001