Second Interim Dividend

Derwent Valley Holdings PLC
12 December 2006

Derwent Valley Holdings plc
12 December 2006



                          DERWENT VALLEY HOLDINGS PLC

                    ANNOUNCEMENT OF SECOND INTERIM DIVIDEND

Further to its announcement on 14 November 2006 of the recommended share for
share merger of Derwent Valley Holdings plc ("Derwent") and London Merchant
Securities plc ("LMS") to create Derwent London plc (the "Transaction"), the
Board of Derwent announces that it is proposing to pay a second interim dividend
of 10.525 pence per Derwent share on 23 February 2007 to Derwent shareholders on
its register of members on 26 January 2007.  The payment of this dividend is
conditional on Derwent shareholders and LMS shareholders approving the
resolutions necessary to implement the Transaction.

This second interim dividend will replace the final dividend Derwent would
otherwise pay in respect of the financial year ending 31 December 2006, which,
as previously announced, was only payable on existing Derwent shares and not new
Derwent shares to be issued to LMS shareholders under the Transaction.  The new
Derwent shares are expected to be issued and to start trading on 1 February
2007.

For further information, please contact:

Derwent Valley Holdings plc                               [phone]
John Burns
Christopher Odom

UBS Limited (financial adviser and broker to Derwent)     [phone]
Liam Beere
Tim Guest




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