AGM Statement

Falkland Islands Holdings PLC
11 September 2007



Falkland Islands Holdings plc
('FIH', 'the Company' or 'the Group')



AGM Statement and Trading update



The following comments were made by Falkland Islands Holdings Chairman, David
Hudd, at the Company's Annual General Meeting, held at 2.30pm today:



'Since we announced our results on 13 June 2007, the Group's trading outlook has
remained positive.



The Group's operations in the Falklands Islands have had an encouraging start to
the current financial year with fishing support services boosted by the best
Illex squid catch since 2000. In addition the commemoration of the 25th
anniversary of the Falklands conflict, which reached its peak in June, resulted
in an increased number of visitors in this normally quiet winter period and
helped boost consumer spending.



Since then commercial activity in the Islands has returned to normal levels.
Insurance broking and property rentals are continuing to make good progress and
we will be adding a further four rental units to the Company's portfolio of 25
investment properties in the coming year.



To strengthen the competitiveness of retail operations, the Group has made
significant changes to its non food operations. The complete refurbishment and
re-launch of the DIY business is underway creating two separate brands. 'Home
Builder', which sells heavy building materials and tools targeted at the
professional builder and 'Home Living' selling soft furnishings and household
goods together with a kitchen and bathroom design service, focussed on the
domestic customer. The clothing store the 'Gallery' has also been re-branded and
now offers a simpler range of less fashion oriented clothing; offering choice
and excellent value under the 'Basics' brand. Local competition still remains
strong and further investment in the retail businesses is planned to ensure the
Company maintains its market leading position. In the five months to 31 August
2007 retail sales were  0.7 % ahead of the same period in 2006 .



The Portsmouth Harbour Ferry Company has continued to perform well during the
busier summer months and despite poor weather this year passenger numbers have
held up well in comparison with 2006. For the five months to 31 August passenger
numbers were 1.0% ahead of the same period last year. A general fare increase of
5% was implemented on June 1 2007.  Discussions are in progress with Gosport
Council regarding the introduction of a new pontoon and landing stage in late
summer 2008. Minimal disruption to passenger services is anticipated. In
addition work has started this month to refurbish and modernise the Company's
own pontoon on the Portsmouth side of the harbour.



The exploration activities of Falkland Oil and Gas ('FOGL') in which the Group
holds 15 million shares representing a 16.3% stake, have continued to make
progress.



In July 2007 FOGL completed its 2D seismic programme and processing of the data
set is well underway. In late August FOGL's CSEM seabed logging programme was
completed and the processing of these results will take place in the final
quarter of 2007. In late July FOGL issued a statement confirming it was in '
advanced discussions' with a potential farm-in partner and we await with keen
interest further news of these developments.

Your Company's cash resources remain strong and profitability in the current
year is progressing in line with our expectations.



Your Board is pleased to note the recent increase in the Company's share price
and will seek to further underpin that value by seeking out selective
acquisition opportunities of profitable businesses in the coming year.'



All resolutions put to the meeting this afternoon were approved by shareholders.





David Hudd

                                                               11 September 2007

Enquiries:


Falkland Islands Holdings
David Hudd, Chairman                                         Tel:  [phone]
John Foster Managing Director                                Tel:  [phone]

College Hill                                                 Tel:  [phone]
Nick Elwes



www.fihplc.com




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