AGM Statement

Derwent Valley Holdings PLC
23 May 2006


23 May 2006


         Derwent Valley Holdings plc ("Derwent Valley" or "the Group")


                                 AGM STATEMENT


Derwent Valley is a commercial property investor focused on Central London.


At today's Annual General Meeting, John Ivey, Chairman, made the following
comments:


"The chairman's statement included in the 2005 report and accounts drew
shareholders' attention to the fact that the proposed legislation could have
deterred much of the quoted property sector from converting to real estate
investment trusts (REITs).  Subsequent to the statement, a number of important
improvements and clarifications were made within the March budget that make this
proposed new form of investment vehicle more appealing to Derwent Valley than
was envisaged at the beginning of the year.


"The conversion charge will be equivalent to 2% of the value of the investment
properties transferred into a REIT.  Based on a year-end portfolio value of £1
billion, this would amount to approximately £20 million, which compares
favourably to the £92 million provided in the 2005 accounts for the potential
tax payable on future capital gains.  If conversion to a REIT took place, this
tax provision would fall away and net asset value would increase by 135p per
share.


"Following the budget proposals, REITs have been welcomed as an investment
vehicle and your directors feel that a focussed company such as Derwent Valley,
which specialises in Central London real estate, would have considerable appeal
to REIT investors.


"Whilst the Finance Bill progresses through its Parliamentary Committee stages,
your directors and their advisers are considering the full implications of REITs
for your company.  Whilst the rationale for conversion appears attractive, a
commitment to convert cannot be made until the legislation is finalised and your
directors have ensured that the value generated for shareholders in the future
as a REIT will be no less than that envisaged under the current model."


Enquiries:


Derwent Valley Holdings plc               020 7659 3000

John Burns, Managing Director



Financial Dynamics                        020 7831 3113

Stephanie Highett/Dido Laurimore


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