Holding in Another Company

Caledonia Investments PLC
18 October 2000

                          CALEDONIA INVESTMENTS PLC
                                      
               Stake in new Technology Fund Management Company


Caledonia Investments plc, the diversified trading and investment company,
today announces that it has reached agreement in principle to become a 20%
shareholder in the new fund management company being established by Brian
Ashford-Russell, Tim Woolley and David Magliocco.

The new company intends to establish a specialist fund management business,
initially focused on the technology sector. The company will limit its funds
under management with the intention of maximising returns for clients. The
company is expected to be operational early next year.

Brian Ashford-Russell, Tim Woolley and David Magliocco are leaving Henderson
Investors at the end of this year, after successfully managing technology
funds for many years.

Peter Buckley, Chairman and Chief Executive of Caledonia Investments said:

'We are delighted to be joining forces with Brian Ashford-Russell, Tim
Woolley and David Magliocco. Caledonia has a long-standing record of
successful investment in the financial sector and our involvement with this
new venture underlines our philosophy of investing alongside proven and
experienced management. This investment will also further Caledonia's
commitment to the technology sector.


Enquiries Caledonia Investments plc          020 7481 4343
Peter Buckley, Chairman and Chief Executive

Citigate Dewe Rogerson                       020 7638 9571
Bill Trelawny
Charles Vivian