Issue of New Ordinary Shares

Capital & Regional plc
20 June 2005

Not for release, publication or distribution in, or into the United States,
Canada, Australia or Japan


FOR IMMEDIATE RELEASE

                                                                    20 June 2005


                             CAPITAL & REGIONAL PLC

                         ISSUE OF NEW ORDINARY SHARES




Capital & Regional plc, the co-investing property asset manager, today announced
plans to issue up to 3,360,000 new ordinary shares for cash, representing up to
just under 5% of the existing issued share capital.  The shares will be placed
through UBS Limited at a price to be established through a bookbuild process.



The proceeds of the placing will be used to pay down debt, and strengthen the
company's position for further repurchases of its Convertible Unsecured Loan
Stock.  This loan stock was issued at £1 in 1996 with a right to convert into
ordinary shares at a price of £1.9448 per share. The share price has since risen
to around £8 per share. The premium over the original subscription price paid on
any loan stock repurchases will be claimed as a corporation tax deduction.



                                    - ENDS -



For further information:
Capital & Regional:
Martin Barber, Chief Executive                           Tel. [phone]
William Sunnucks, Group Finance Director                 Tel. [phone]

UBS Limited
Tim Guest / Michael Aaron                                Tel. [phone]

gcg hudson sandler
Michael Sandler / James Benjamin                         Tel. [phone]




Notes to Editors

About Capital & Regional plc

Capital & Regional is the co-investing asset manager which specialises in town
centre shopping centres, out of town retail parks, and urban entertainment
complexes.



Capital & Regional founded the Mall and Junction Funds in conjunction with
Morley Fund Management. It also founded the X-Leisure Fund with Hermes
Investment Management, and has a number of other joint ventures and
developments. Its shares are quoted on the London Stock Exchange.



Over the last five years the company has made 21 repurchases of equity. The
total equity raised since flotation in 1986 is £200 million, of which £95
million has since been repurchased.



In addition, since September 2004 Capital & Regional has spent £45.5 million on
repurchasing loan stock, which has had the effect of reducing the company's
share capital on a fully diluted basis.  The company last repurchased loan stock
on 18 March 2005, leaving 44% of the loan stock originally issued currently
outstanding.



For further information see www.capreg.com



Disclaimers

The issue of up to 3,360,000 new ordinary shares (the "Placing Shares") for cash
(the "Placing") is conditional inter alia on the admission of the Placing Shares
by the UK Listing Authority, their admission to trading on the London Stock
Exchange, for which application has been made and commencement of dealings in
the Placing Shares. Dealings in the Placing Shares, which will rank pari passu
in all respects with the existing ordinary shares in the company, are expected
to commence on Thursday 23 June 2005. UBS Limited has agreed to use reasonable
endeavours to procure placees to take up the Placing Shares.  Details of the
price at which the Placing Shares are to be offered will be announced as soon as
possible after the bookbuild process.



This announcement has been issued by, and is the sole responsibility of, Capital
& Regional.  UBS Limited is acting for Capital & Regional in connection with the
Placing and no-one else and will not be responsible to anyone other than Capital
& Regional for providing the protections offered to clients of UBS Limited nor
for providing advice in relation to the Placing.



Members of the public are not eligible to take part in the Placing.  This
announcement, in so far as it constitutes an invitation or inducement to
participate in the Placing, is directed only at persons who have professional
experience in matters relating to investments who fall within article 19(1) of
The Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as
amended) (the "Order") or are persons falling within article 49(2) (a) to (d) of
the Order (all such persons together being referred to as "Relevant Persons").
This announcement, in so far as it constitutes an invitation or inducement to
participate in the Placing, must not be acted on or relied on by persons who are
not Relevant Persons.  Any investment or inducement activity in so far as
relating to participation in the Placing is available only to Relevant Persons
and will be engaged in only with Relevant Persons.



This announcement does not constitute an offer of securities for sale in the
United States. The information contained herein is not for publication or
distribution to persons in the United States. The Placing Shares have not been
and will not be registered under the U.S. Securities Act of 1933 (the
"Securities Act") and may not be offered or sold in the United States unless
they are registered with the U.S. Securities and Exchange Commission or pursuant
to an exemption from the registration requirements of the Securities Act.






                      This information is provided by RNS
            The company news service from the London Stock Exchange