Press Speculation

Capital & Regional PLC
19 November 2001

                                                              19 November 2001

                       CAPITAL & REGIONAL PLC  (C & R)

                    STATEMENT REGARDING PRESS SPECULATION


Capital & Regional plc ('C & R' or 'the Company') confirms press speculation
that it is in negotiation with Morley Fund Management ('Morley') to create a
retail park property fund.

Any possible transaction would include the merging of a significant part of
both C & R's and Morley's out-of-town retail park portfolios into a new
venture.   C & R would be the asset manager and Morley would be responsible
for fund management.  The Fund would initially be owned equally.

Negotiations are on-going and a number of issues remain outstanding that could
preclude their successful completion.


Enquiries:

Martin Barber, Chief Executive, Capital and Regional plc
Telephone:  [phone]

Michael Sandler/Andrew Hayes, Hudson Sandler
Telephone:  [phone]