Re: Crown Estate Deal

Derwent Valley Holdings PLC
02 August 2006

2 August 2006

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

          DERWENT VALLEY COMPLETES PROPERTY SWAP WITH THE CROWN ESTATE



Derwent Valley has completed a property swap with The Crown Estate
Commissioners.  Through this transaction, Derwent Valley has purchased the
freehold interests in Riverwalk House, 157-166 Millbank SW1 for £13 million and
in Argosy House, 215-217 Great Portland Street W1 for £1.65 million and sold its
leasehold interest in Morley House, 314-322 Regent Street W1 for £17.5 million.
Derwent Valley received a balancing payment of £2.85 million.



•         Derwent Valley held the headlease on Riverwalk House, which had 57
years remaining, at a rent of £521,500 per annum.  The property comprises
6,941sq m (74,710 sq ft) of offices with 35 surface car parking spaces and is
located in a highly prominent position at the junction of Millbank and Vauxhall
Bridge Road on a site area of approx 0.7 acres fronting the River Thames.  The
building is occupied by The Government Office for London on a lease expiring on
4 April 2011 at a rent of £2.3 million per annum.



•         Derwent Valley held the headlease on Argosy House, which had 55
years remaining, at a head rent of £40,250 per annum.  The building comprises
2,853 sq m (30,709 sq ft) of offices and 19 basement car parking spaces and is
let in its entirety to Grey Advertising Limited ("Grey") on a lease expiring on
24 December 2006 at a rent of £841,250 per annum.  Grey has recently entered
into a lease on 4,682 sq m (50,400 sq ft) at Derwent Valley's Johnson Building,
Hatton Garden EC1.



•         Morley House totals 3,785 sq m (40,747 sq ft) of offices and retail
premises on Regent Street.  Derwent Valley held the leasehold interest, with 71
years remaining, at a head rent of £115,000 per annum.  The building is
multi-let and currently produces a rent of £1.14 million per annum.



John Burns, Derwent Valley's Managing Director commented:



"This is an innovative, off market deal which will benefit both Derwent Valley
and The Crown Estate.  We have been able to enhance our interest in two
leasehold properties, which have considerable refurbishment or redevelopment
potential.  Whilst the immediate effect is the release of the marriage values,
the transaction has facilitated the unlocking of this future potential.  Through
the transaction, The Crown Estate has brought under its direct control Morley
House, which is located in its core Regent Street area."



For further information, please contact:

Derwent Valley Holdings plc
John Burns
Tel: [phone]

Financial Dynamics
Stephanie Highett/Dido Laurimore
Tel: [phone]






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