Response to Heron Corporation

Crest Nicholson PLC
04 May 2005


                                                                      4 May 2005


                 Crest Nicholson plc ("Crest" or the "Company")

                 Response to announcement by Heron Corporation

Crest notes the announcement by Heron Corporation ("Heron") released today.

Following Crest's offer last week to meet with Heron in order to assist Heron in
improving its position as regards value and in clarifying other key components
of its proposal, Crest met with representatives of Heron on Wednesday 27 April
2005. Crest offered to work with Heron to demonstrate value in its business in
excess of the range of 345-430 pence per share which Heron indicated in its
announcement of 16 March 2005.

Although the discussions with Heron were cordial, Heron declined to increase its
indicative range. Consequently the Board of Crest decided that there was no
basis on which to enter into substantive negotiations with Heron and no
confidential information has been exchanged.

Crest's interim results announcement for the six months to 30 April 2005 is
expected to be made on 23 June 2005.

John Matthews, Chairman of Crest, commented:

"Throughout this process, we have had our fiduciary duties to shareholders
uppermost in our minds and have acted accordingly. Crest is a company that has
performed consistently and strongly in recent years. It has a strong landbank of
high quality and above average length which positions Crest well for the future.

"We remain confident that Crest has excellent prospects and look forward to
demonstrating how the continuation of our strategy of adding a strong urban
regeneration business to our traditional housebuilding activities will generate
significant value for shareholders."

Enquiries to:

Brunswick Group LLP
Andrew Fenwick/ Kate Miller/ Robert Gardener
Tel: [phone]


UBS Limited is acting for the Company in connection with the possible offer
referred to in this announcement and no one else and will not be responsible to
anyone other than the Company for providing the protections afforded to its
clients or for providing advice in relation to the possible offer, the contents
of this announcement, or any transaction or arrangement referred to herein.

Dresdner Kleinwort Wasserstein Limited, which is authorised and regulated by the
Financial Services Authority, is acting as corporate broker to Crest Nicholson
plc in connection with the possible offer referred to in this announcement and
for no-one else and will not be responsible to anyone other than Crest Nicholson
plc for providing the protections afforded to customers of Dresdner Kleinwort
Wasserstein, or for affording advice in relation to the contents of this
announcement, or any transaction or arrangements referred to herein.


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