Disposal

Barratt Developments PLC
05 August 2004


Embargoed for 7am                                               5th August 2004

                   SALE OF BARRATT US HOUSEBUILDING OPERATION

On 4 August 2004, Barratt Developments PLC ('Barratt') entered into an agreement
for the sale of Barratt USA Holdings Inc, which owns all of the shares in the
Barratt US housebuilding subsidiary, Barratt American Inc ('Barratt American'),
to Barratt Investments Incorporated for a consideration of $165m (approx. £91m),
$3m (£1.6m) of which will be payable over two years. The proposed sale of
Barratt American is subject to various conditions and completion of the
transaction is expected in early September 2004.

Following completion of the sale, Barratt will also receive additional
consideration of 5% of any profit, up to a maximum of $35m, generated by Barratt
Investments Incorporated on the development of one site in San Diego County for
which planning permission has not yet been received. These additional payments
will be made on a phased basis over the course of the development.

Barratt Investments Incorporated is an acquisition vehicle formed for the
purchase of Barratt USA Holdings Inc with finance being provided by Bank of
America, a private equity investor and by three members of the senior management
team of Barratt American, including Michael Pattinson, its President for the
last 13 years.

For the year ended 30 June 2004, the unaudited figures for Barratt American
indicate sales of $305.4m (£167.6m), profit before tax of $29.6m (£16.9m) and
net assets of $104.9m (£58.0m).

The proceeds from this disposal will be used gradually for the selective
purchase of land for urban renewal projects targeted at leading Barratt
divisions in key growth areas. Meanwhile it will be used initially to reduce
gearing.

David Pretty, Chief Executive of Barratt said:

'This is a good strategic move for Barratt. Barratt American is a profitable but
relatively small part of our total Group operation. Its disposal in a strong US
housing market on terms, which we believe are attractive for our shareholders,
will enable greater focus on our core UK operations. We are the largest
housebuilder in the UK producing 14,000 homes per annum but we only have a 9%
market share, so there are significant opportunities for future growth in the
UK. This will also boost further growth in some of our most experienced UK
divisions.'

For further information please contact:

David Pretty, Chief Executive
Colin Dearlove, Finance Director
Tel: [phone]

Ms Chris Lynch
Terry Garrett
Tel: [phone] (Weber Shandwick)

Peter Hindmarsh
Tel: [phone] (UBS Investment Bank)



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