Re Directorate

RNS Number:5743I
Birse Group PLC
16 August 2001

                   BIRSE GROUP PLC ("BIRSE" OR THE "GROUP")

                                Board changes

The Board of Birse is today announcing a number of Board changes as a
consequence of Peter Birse's decision to retire and of the Board's decision to
re-organise the management structure of the Group's construction activities.
Under the new flatter structure, the divisional heads of the building, civils
and process businesses will report directly to the Group Managing Director
rather than through a separate Construction Managing Director as has been the
case.

Peter Birse, currently Non-Executive Chairman, has decided to retire from the
Board at the conclusion of the Annual General Meeting on 21 September 2001. He
has confirmed to the Board that he has no plans to reduce his beneficial
holding of 27,215,685 ordinary shares representing approximately 14.1 per
cent. of the issued ordinary share capital of Birse. Following Peter Birse's
decision to retire as Non-Executive Chairman, the Group is in the process of
appointing a further non-executive director and an announcement will be made
in due course.

Peter Watson, who has been Chief Executive since 1999 will, upon Peter Birse's
retirement, become Executive Chairman.

Martin Budden, currently Group Finance Director and Company Secretary, will
become Group Managing Director with immediate effect. He will be replaced,
again with immediate effect, as Group Finance Director and Company Secretary
by Heather Appleford, who is currently the Finance Director of Birse
Construction Limited. Heather is a qualified chartered accountant and has been
with the Group for just under three years. Prior to that she was, for five
years, finance director of a division of Faber Prest PLC.

John Elders, who joined the Group in 1985 and was appointed to the Board of
Birse in 1998 and is currently Managing Director of Birse Construction
Limited, will be leaving the Group with immediate effect.

Commenting upon these changes, Peter Watson said "The Board is very grateful
both to Peter Birse and to John Elders for their contribution to the
development of the Group over a long period of time. In particular, it is with
some sadness that we announce the impending retirement of Peter Birse who
founded the Group more than 30 years ago. He has guided the Group from the
outset through its flotation in 1989 to the present and we share his pride in
the business that still bears his name.

With regard to trading, the conditions in each of the sectors in which we
operate remain better than at any time in recent years".



There is no information in relation to Heather Appleford which is disclosable
under Rule 16.4 of the Listing Rules.

For further information please contact:

Birse Group plc     01937 589939

Peter Watson

Martin Budden