Berkeley Group Regulatory News (BKG)

The Berkeley Group Holdings plc

At The Berkeley Group Holdings plc's ("Berkeley's") Annual General Meeting ("AGM") being held today, the Chairman, Tony Pidgley, will make the following Interim Management Statement, which covers the period from 1st May 2011 to 31st August 2011.

Berkeley embarked on a five year plan in May 2010 to achieve the following near term operating targets during a period of recovery in the wider market.

·; Firstly, to achieve a compound return on equity, broadly equivalent to doubling profit before tax over 5 years;

·; Secondly, to grow the future gross margin in the land bank from £2 billion to some £3 billion in the same period;

·; Thirdly, to be the market leader in place making using the Building for Life criteria.

With the full year results announced in June, the Board indicated its confidence that the business would maintain the reported rate of earnings growth and increase the value of the land bank in the current year. Additionally, the Board provided shareholders with long term visibility on both the timing and amount of potential returns, announcing its intention to return £13 per share (some £1.7 billion in total) over the next 10 years in a series of dividends payable on milestone dates in September 2015, 2018 and 2021.

Since the original plan was announced in May 2010, trading has been ahead of management expectations and Berkeley has achieved a significant number of planning consents and invested in work in progress in line with its strategy. Together with the performance in the period since 1st May 2011, the Board believes that it is now positioned to achieve the profit target set in the five year plan at least 2 years earlier than originally anticipated, to the extent that market conditions prevail. Market conditions in the four months ended 31st August 2011 have enabled further growth in forward sales which are currently in excess of £850 million.

In respect of land bank investment, Berkeley has secured a further 7 sites in the quarter. Additionally, Berkeley continues to focus on adding value to its existing land bank from optimisation. Improved consents have been achieved in the period on a number of schemes, including sites in Battersea, Kew, North Bersted and Gillingham. These successes, coupled with further investment in work in progress, indicate that market conditions, as opposed to delivery, will be the most important factor in determining the extent of further growth in the business.

Berkeley's emphasis on place making and putting the customer at the heart of every decision, coupled with a focus on London and the South East, has enabled it to outperform despite the well publicised wider market challenges we are experiencing. Our ability to produce homes and places where people want to live gives us confidence that we can achieve our return to shareholders over the long term.

END

For further information please contact:

The Berkeley Group Holdings plc Cardew Group

A W Pidgley Tim Robertson

R C Perrins Georgina Hall

N G Simpkin T: 0207 930 0777

T: 01932 868555