AGM Statement

Derwent Valley Holdings PLC
20 May 2004



Derwent Valley Holdings plc

AGM Statement


Derwent Valley Holdings plc ("Derwent Valley" or "the Group") is a commercial
property investor focused on Central London. The Group invests not only in the
West End, but also in improving locations where it perceives future value.



At today's Annual General Meeting, John Ivey, Chairman, made the following
comments:
"In my statement of 18th March, which accompanied our 2003 results, I expressed
our confidence that a return to growth in the West End market was close at hand.
Today, I am pleased to confirm that we are indeed seeing an upturn in letting
activity, both in the West End and in our other London villages.
"Since 18th March, we have continued to make progress in letting the available
space within the portfolio. From the start of this year to the time of my
statement, we had achieved lettings, or had property under offer, which
eventually would add £2.3 million to our rent roll. This momentum has been
maintained and that figure now stands at £3.4 million.
"In a market where acquisition opportunities are hard to source, we were pleased
to announce today the £77 million purchase from Chelsfield plc of three West End
office properties with reversionary and refurbishment potential. Details of this
transaction can be found in a separate stock exchange announcement or on the
company's website.
"Within our existing portfolio, we are now on site at New Garden House, Hatton
Garden, EC1. This 166,000 sq. ft redevelopment is the principal scheme currently
being undertaken by Derwent Valley. We are also progressing planning
applications for a number of other projects, in the West End, at Paddington and
within our Islington portfolio.
"The management team remains firmly focused on its strategy of delivering above
average returns to shareholders through creative planning, the highest standards
in architecture and design and enterprising lease management. I have every
confidence that continued implementation of this strategy will enable us to
achieve another successful year."
                                                                   20th May 2004

ENQUIRIES:

DERWENT VALLEY HOLDINGS PLC         020 7659 3000
John Burns, Managing Director

COLLEGE HILL                        020 7457 2020
Gareth David                        Email: [e-mail]
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