Director Shareholding

Falkland Islands Holdings PLC
05 January 2005


                          Falkland Islands Holdings plc

                           Exercise of share options


For immediate release                                            05 January 2005


The Board of Falkland Islands Holdings ('FIH') has today allotted 88,500 new
ordinary shares of 10 pence each on the exercise of share options granted under
the Executive Share Options Scheme. Application has been made for the admission
of these ordinary shares to trading on AIM.


FIH now has 8,300,408 shares in issue.


As a result of exercising these options some of the directors' shareholdings
have changed as follows:


                    Options         Exercise            Current           %*  
                    Exercised       Price £             Shareholding


B McGreal             25,000        1.00                50,533           0.60
                       3,500        1.395

                             

A M Knightley         15,000        1.00                31,000           0.37                        
                      10,000        1.395         
                                              


*percentage of enlarged issue share capital.






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