Disposal

Derwent Valley Holdings PLC
19 November 2004

                         DERWENT VALLEY HOLDINGS PLC

          Central London sales and progress with Paddington development


Derwent Valley Holdings Plc ("Derwent Valley" or "the Group"), the specialist
Central London property development and investment group has exchanged contracts
on £36.9 million of sales and taken back the occupational lease on Telstar
House, Paddington.

Heron House, 319-325 High Holborn, WC1

The group has sold its 65,496 sq ft (6,085 m2) freehold office and retail
building to Barclays Nominees (George Yard) Limited for £29.6 million.  The
multi-let property produces an income of £2.3 million per annum with all leases
expiring June 2005.

27-32 Old Jewry, EC2

This was the Group's only City core property and has been sold to the Church
Commissioners for England for £7.325 million.  The 78 year leasehold interest,
held at a ground rent gearing of 16% of income, comprises 23,431 sq ft (2,177
m2) of office and banking space and has undergone a rolling refurbishment.  Upon
expiry of rent free periods the net income will be £0.43 million per annum.

Telstar House, Eastbourne Terrace, W2

Following a fire in 2003, which extensively damaged this 89,400 sq ft (8,305 m2)
office building, the Group has agreed a settlement of £18.75 million with the
insurers.  At the same time the Group has advanced the redevelopment of the
building by releasing the tenant, London Underground, from its £2 million per
annum commitment, under a lease that would have expired in 2018.  Work on the
new building, which will provide 104,000 sq ft (9,660 m2) of offices, is due to
commence in 2005.

John Burns, Managing Director of Derwent Valley, comments:

The continuing strong investment market provided a good opportunity to make
profitable disposals, with Heron House achieving 9.3% and Old Jewry 2.4% above
their June valuations.  Gaining full control of Telstar House brings forward a
significant development opportunity in Paddington, an area that has been
transformed into an important Central London office location and where the Group
has substantial holdings.  Having obtained planning permission earlier this year
for the development the project is scheduled for completion in 2007".

John Burns                                                    19th November 2004
020 7659 3000


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