Response to Heron

Crest Nicholson PLC
25 April 2005



                                                                   25 April 2005


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

Crest Nicholson notes the announcement by Heron Corporation ("Heron") this
morning.

The Board continues to believe that the top of the range of 345 to 430 pence per
share indicated by Heron in its announcement of 16 March 2005 significantly
undervalues the Company. The Board believes that there is sufficient information
in the public domain to place an appropriate indicative value on the Company.
Given this, and all the other uncertainties linked to Heron's approach, the
Board continues to believe that it is not in shareholders' best interests to
provide Heron with confidential information in relation to the Company.

As stated in the Company's announcement of 16 March 2005, Crest has asked Heron
for clarification on a number of fundamental issues including the price of any
possible offer, the parties who would make any offer, sources of funding and
timetable. The Board regrets that Heron has chosen not to clarify its position
in respect of any of these matters in its announcement this morning or earlier
or otherwise provided any new initiatives to advance this process.

The Board remains focussed on shareholder value and will continue to act in the
best interests of the Company's shareholders. To this end, Crest is prepared to
meet with Heron to assist Heron in improving its position as regards value and
in clarifying other key components of its proposal.

John Matthews, Chairman of Crest Nicholson, commented:

"The Board continues to remain focussed on its fiduciary duties and on the
generation of value for shareholders. We remain confident that Crest's market
position in both traditional and urban regeneration schemes and the quality of
its short term and strategic land banks offer our shareholders excellent
prospects for future profits and increased value. For any offer for Crest to be
recommended by the Board it will need fully to reflect those prospects."

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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