George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000

Agenda background objectives and strategy what we plan to do benefits current trading summary

Background market –outlook stable with low price inflation –changed planning environment –continued demand for detached houses

Background Wimpey - strengths –recognised in industry for build quality –leading results in customer satisfaction survey –improving product mix and land bank

Background Wimpey - issues to be addressed –lack of benefits from Wimpey/McLean merger –wasteful duplication of effort –too many regions below critical mass –large Head Office –high cost culture

Objectives and Strategy objective - to create shareholder value –reduce costs and bureaucracy –speed up decision-making –gain benefits from scale –grow added value products and services –change internal culture

Objectives and Strategy strategy –make our business efficient –move mix towards growing markets –gain benefits from internal benchmarking etc –invest more in new construction techniques –develop new products and services

Initial targets eliminate high cost culture gain advantages from our scale show shareholders we can use capital well

What we plan to do create single UK housing business Keith Cushen appointed Managing Director of UK housing Keith Cushen and Stu Cline join Board with immediate effect

What we plan to do use McLean decentralised structure new, lean headquarters outside London slim corporate centre in central London

Benefits reducing our costs –up to £15mn pa –full benefits coming through by end 2001 –some benefits in H –one-off exceptional costs of ~ £15mn exploiting the benefits of scale creating the potential for growth

Current trading 2000 to finish strongly - results on track stable market conditions set to continue in 2001 lengthening planning process will result in H1 performance below same period in 2000

Summary historic high cost culture to go benefits of asset swap now to be realised management will be decentralised slim head office structure first steps to new structure already taken line management very supportive of plan led by experienced Managing Director: Keith Cushen