NAV and Special Dividend

Caledonia Investments PLC
29 June 2004



                      Net Asset Value and Special Dividend

The Board of Caledonia Investments plc ('Caledonia') announces that the net
asset value per share, calculated in accordance with the methodology set out in
the circular to shareholders dated 19 May 2004, as at the certification date of
5.00 p.m. on 25 June 2004, was 1276.91 pence.  The amount of the special
dividend per share to be paid on those shares on which Caledonia shareholders
have validly elected to receive the special dividend will be 1047.07 pence.

Caledonia has previously announced that valid elections had been submitted to
receive the special dividend on 8,407,676 of its ordinary shares. Therefore, the
total amount to be paid under the special dividend proposals will be £88.0
million. As a result, and taking into account the company's existing cash
resources, Caledonia plans to cancel £100 million in total of the £200 million
term bank facilities that were in place at the time of the announcement of the
special dividend proposals, leaving total committed term bank facilities of £100
million, of which approximately £30 million is expected to be drawn down for the
payment of the special dividend. It is therefore anticipated that, immediately
after the payment of the special dividend, borrowings will be approximately 3.6%
of total assets, based on asset values calculated as above as at 25 June 2004.

The implementation of the special dividend proposals remains conditional on the
Court's approval of (i) the reduction of capital by Caledonia and (ii) the
scheme of arrangement of The Cayzer Trust Company Limited, the hearings for
which are scheduled for later today. The Court order confirming Caledonia's
reduction of capital is expected to become effective on 30 June 2004 and
payments to those shareholders who have validly elected to receive the special
dividend will be made as soon as practicable thereafter.

A further announcement will be made once the results of the Court hearings are
known.

                                                                    29 June 2004

ENQUIRIES:

Caledonia
Tim Ingram, Chief Executive                          Tel: [phone]

College Hill                                         Tel: [phone]
Tony Friend
Richard Pearson




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