Land Acquisition

Anglo-Eastern Plantations PLC
10 January 2008



Thursday 10 January 2008


      ANGLO-EASTERN ACQUIRES A FURTHER 15,000 HA OF LAND FOR $3.8 MILLION

Anglo-Eastern Plantations Plc (AEP.L), which owns approximately 83,000 hectares
(ha) of plantation land, of which 38,000ha are currently planted, principally
with oil palm in Indonesia, has acquired the rights over 15,000 ha of land in
the province of Bengkulu in southern Sumatra in Indonesia. The total
consideration is $3.8 million in cash, from the group's existing facilities.

This acquisition follows the two announced on 3 December 2007, totalling
33,000ha on the islands of Bangka and Borneo, bringing total acquisitions to
48,000ha in the last two months and enabling the significant expansion of the
group over the next five to eight years.


The Bengkulu land rights are owned by a local company, P.T. Riau Agrindo Agung
(RAA), 95% of which is to be acquired for a consideration of $3.8 million. The
balance of 5% will be retained by the vendor, an Indonesian national, who is
also Anglo-Eastern's partner in Kalimantan (Indonesian Borneo) and who will fund
his share of the development alongside Anglo-Eastern.

The location is about two hours' drive south of the group's existing estates in
Bengkulu and about one hour's drive north of the provincial capital. The project
will therefore be a natural management addition to the group's existing
operations in the region and, at least in early production years, will have
access to the group's existing nearby mill.

Terrain is hilly, but better than that of the existing Bengkulu operations.
Soils are good and rainfall is also suitable for oil palm. Vegetation is
predominately scrub, and light secondary forest, the original forest having been
removed some years ago. The area is vacant except for some villages and is zoned
for commercial agricultural development. At present, it is not possible to
estimate accurately the proportion of the area which will be allocated to local
community projects, but a substantial portion of the area will be available for
planting by the group.

Limited planting will begin in 2008, using material from the group's existing
nurseries in the region, and significant planting will commence in 2009.
Production is likely to commence in 2012 and the area should be fully planted by
2015.

Application has been made for conversion of the local company into an accredited
'foreign investment' company.

Conversion of the land rights into confirmed land titles will take between one
and two years and requires development to commence in the interim.

Field development cost of, say, a 10,000ha project over the next five years is
estimated at $32 million. As reported with the 2007 half year results, the group
has drawn down a loan of $34.5 million which, together with self generated
funds, will be used to develop this and other current projects. Net cash at 30
June 2007 totalled $9.0 million.

This acquisition will not affect group profits in 2008. Earnings should begin to
be significant in 2013.

Mr T H Chan, Chairman and Chief Executive, commented:

'This further acquisition is a valuable addition to the group's existing
operations in Bengkulu and adds to our already substantial land bank, which will
enable the significant expansion of the group in the next five years and beyond.
The effect is to increase our total land area to 98,000ha.'

Enquiries:

Anglo-Eastern Plantations plc                                    020-7236 2838
Rollo Barnes (Financial Director)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7367 8851

Notes for Editors

1.   Anglo-Eastern is a member of the Round Table on Sustainable Palm Oil 
     (RSPO), whose members comprise palm oil growers and refiners, food
     manufacturers and supermarkets as well as NGOs interested in environmental
     protection and the rights of indigenous people. RSPO sets best practice
     standards for the sustainable production of palm oil.

2.   At last night's closing mid-market share price of 550p, Anglo-Eastern's 
     market capitalisation was £217 million.




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