RE: Letting

Derwent Valley Holdings PLC
28 June 2006

3PRESS RELEASE



28 June 2006



                Derwent Valley Holdings plc (" Derwent Valley")



            DERWENT VALLEY PRE-LETS TELSTAR, PADDINGTON TO RIO TINTO



Derwent Valley Holdings plc announces that Derwent Valley London Limited, a
subsidiary company, and PRUPIM have exchanged an agreement for lease with Rio
Tinto for the pre-letting of Telstar, Paddington, W2.



Rio Tinto has committed to a 20 year lease on the entire 107,000 sq ft (9,940 sq
m) building for their new European headquarters, at a rent of £4,954,000 per
annum, with a 21 month rent free period.



Situated on Eastbourne Terrace in Paddington, the development, which commenced
at the end of 2005, is due to complete in July 2007, at a build cost of
approximately £23 million, excluding fees. Designed by Fletcher Priest
Architects, the scheme creates an elegant new landmark building and is an
important contribution to the area's regeneration.  Derwent Valley is the
development manager for the scheme having sold the site to PRUPIM for its
Prudential Life Fund, once planning consent had been obtained.  The agreement
with PRUPIM includes a profit sharing arrangement, which will be determined by
the final costs of the building and its market value on completion.



John Burns, Managing Director of Derwent Valley, commented:



"This pre-letting is a significant endorsement of both the location and the
strengthening Central London letting market.  We designed Telstar to provide
high grade, modern office accommodation that would attract major companies
wanting West End quality space but with all the transport advantages offered by
Paddington. We are delighted with Rio Tinto's decision to move to Telstar.
Paddington has substantial development activity going on at the moment and we
are pleased to be playing an important role in its transformation."



                                     -ENDS-



For further information please contact:


Derwent Valley Holdings plc                     Tel: [phone]
John Burns


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


                      This information is provided by RNS
            The company news service from the London Stock Exchange  ND

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