Director Shareholding

Caledonia Investments PLC
21 November 2003

CALEDONIA INVESTMENTS PLC - GRANT OF SHARE OPTIONS

Caledonia Investments plc ('Caledonia') announces that on 20 November 2003
options over ordinary 5p shares ('Shares') in the company were granted to
executive directors under the Caledonia Investments plc 1998 Executive Share
Option Scheme ('the 1998 Scheme') at an exercise price of 945p per share as
follows:

Executive Director                      No. of Shares over which options granted
T C W Ingram                                         35,400
Hon C W Cayzer                                       17,100
J H Cartwright                                       24,800
J M May                                              28,000

Under the rules of the 1998 Scheme, options may only be exercised if a
performance target has been met. The target for the above options will require
Caledonia's adjusted net asset value per share to outperform either the Retail
Price Index or the FTSE All Share Index over a consecutive three year period. In
addition, only one third of the Shares under option may be exercised within
three years of grant, the remaining two thirds becoming exercisable six years
after grant. The final date for exercise of options is ten years after date of
grant.

On the same date, Mr J M May has also been granted an option over a further
28,000 Shares at an exercise price of 945p on special performance related terms.
As in the case of his options granted under the 1998 Scheme, only one third of
the Shares under option will be exercisable three years after grant, with the
remaining two thirds becoming exercisable six years after grant. The final
exercise date is ten years after date of grant. Both tranches of the special
option will be subject to a stretching performance condition requiring
Caledonia's total shareholder return ('TSR') to outperform the FTSE All Share
Total Return Index ('the Index') over the measurement period. A tranche will
vest in full if Caledonia's TSR exceeds that of the Index by an average of at
least two per cent per annum over the relevant measurement period. If
Caledonia's TSR equals that of the Index, none of the tranche will be
exercisable and there will be proportionate vesting of a tranche if Caledonia's
TSR exceeds that of the Index by an average of between zero and two per cent per
annum. For the one third tranche, the performance measure will be first applied
three years after grant, with two re-test opportunities four and five years
after grant. For the two thirds tranche, the performance measure will be first
applied five years after grant, with two re-test opportunities six and seven
years after grant. The shares required to satisfy Mr May's option will be
transferred from the Caledonia Investments plc Employee Share Trust. The
remaining terms of the special option are based on the rules of the 1998 Scheme
and include provisions that any benefits obtained by Mr May from the special
option will not be pensionable and that the terms of the special option will not
normally be capable of amendment to his advantage without the prior approval of
the company in general meeting.

 The total number of Shares under option held by the above-mentioned executive
directors of Caledonia following the above option grants are as follows:

Executive Director                Total no. of Shares over which options granted
T C W Ingram                                         201,400
Hon C W Cayzer                                       94,100
J H Cartwright                                       140,800
J M May                                              56,000





Enquiries:

G P Denison
Company Secretary
Caledonia Investments plc                                 020 7802 8080

21 November 2003


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