Stmnt re Share Price Movement

Capital & Regional plc
01 May 2008


                                                                      1 May 2008

                         CAPITAL & REGIONAL PLC:

                              The Mall Fund


Capital & Regional plc ("The Company"), the co-investing property asset manager,
notes the volatility in its share price and is aware of market concern around
the capital structure of The Mall Fund ("the Mall"), in which it holds a 24.2%
stake.


This announcement is designed to provide further detail on our preliminary
results announcement (11 March 2008) as regards to the Mall's loan to value 
("LTV") covenants.


The Mall Fund has issued £1.4bn in Mall Bonds, which have an interest cover
ratio ("ICR") covenant but no direct LTV covenant.


The Mall partnership deed provides that the partnership debt on an incurrence
basis should not exceed 60% of the aggregate of the property value and the
current market value of any other partnership assets.


The £300m acquisition/capex facility with RBS provides that the loan to property
value should not exceed 60% at any time.


The Mall Common Terms Deed (which also includes the Mall Bonds) requires the
Mall to comply with both the LTV covenants noted above.


At 31 March 2008 the RBS facility LTV test stood at 58.8%.


As we mentioned in our preliminary results announcement, the Mall has a number
of options including, but not limited to, realisation of assets which will
ensure that the Mall remains within the agreed covenants.


The Company and Morley Fund Management, the fund manager of the Mall, are
working closely together to this end.


The Company intends to provide further information together with the Interim
Management Statement on 16 May.


The Company is confident that these actions will ensure that the Mall will
remain compliant with its covenants.


                                    - ENDS -



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 Limited, and has a number of other joint ventures and
developments.  Its shares are quoted on the London Stock Exchange.

For further information see www.capreg.com





                                    - ENDS -

For further information:

Capital & Regional:
Hugh Scott-Barrett, Chief Executive            Tel:  [phone]

Maitland
                                             
Emma Burdett                                   Tel:  [phone]




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