Sale of Shares

Caledonia Investments PLC
11 June 2004



Sale of 7.4 million shares in Close Brothers Group plc


Caledonia Investments plc ('Caledonia') announces that it has sold 7,400,000
shares in the independent merchant banking group, Close Brothers Group plc 
('Close Brothers'), at a price of 775 pence per share. The shares, which 
represent 5.13 per cent. of Close Brothers' total issued share capital, have
been placed by UBS and the cash proceeds of £57.1m will be placed on deposit.


The Close Brothers shares sold were held in Caledonia's balance sheet at 31
March 2004 at their then market value of £59.2m.


Commenting on today's announcement, Tim Ingram, Chief Executive of Caledonia,
said:


'Caledonia has been a substantial and supportive shareholder in Close Brothers
for over 15 years. The outstanding success of the Close Brothers business over
this period has brought about an imbalance of this holding in relation to
Caledonia's overall portfolio. This situation has been kept under regular review
and this sale has been undertaken to adjust this.


Following this sale, we remain Close Brothers' largest shareholder with a
holding of over 12%, which we regard as a long term core investment in line with
our investment policy. We have great confidence that Close Brothers, with its
distinctive style and focused approach, will continue to prove a rewarding
investment.'


Colin Keogh, Chief Executive of Close Brothers, commented:


'Caledonia has been our largest shareholder for over 15 years and after this
sale will remain so.


We have an excellent relationship with Caledonia and are delighted that we
continue to have Caledonia's long term support.'

                                                                    11 June 2004

Enquiries:

Caledonia Investments
    Tim Ingram, Chief Executive                020 7802 8080
    Jonathan Cartwright, Finance Director

College Hill
    Tony Friend                                020 7457 2020
    Richard Pearson                            020 7457 2020


Close Brothers Group
    Colin Keogh, Chief Executive               020 7426 4000


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