Investment

Caledonia Investments PLC
03 March 2006

Caledonia Investments plc

Investment in Dewan Housing Finance Corporation Limited

Caledonia Investments plc ('Caledonia') is pleased to announce that it has
agreed terms to increase its investment in Dewan Housing Finance Corporation
Limited ('Dewan'), an Indian quoted home loan and mortgage provider, through a
placing of new Optionally Convertible Preference Shares ('OCPS') at an aggregate
subscription price of Rs 530m (approximately £6.8m). The subscription will be
subject to the approval of Dewan's shareholders at an extraordinary general
meeting to be held on 27 March 2006. Caledonia already holds a 2.2% stake in
Dewan and conversion of the OCPS, which cannot take place until 13 months after
the date of issue, would increase this to 14.0% of the enlarged share capital.

Tim Ingram, chief executive of Caledonia, commented:

'We are pleased to have been able to increase our investment in Dewan and we
look forward to a long and successful association. The investment reflects our
strategy of seeking out excellent companies in the fast growing Indian economy.'

Kapil Wadhawan, managing director of Dewan, added:

'We welcome this vote of confidence from Caledonia in Dewan and its future. With
its long term approach to investment and the expertise and experience of the
mortgage banking industry it brings us, Caledonia is an excellent partner to
have.'


                                                                    3 March 2006


Caledonia Investments plc                                     Tel: [phone]

Tim Ingram
Jonathan Cartwright

College Hill Associates                                       Tel: [phone]

Tony Friend



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