Exercise of options

Falkland Islands Holdings PLC
17 August 2006





                         Falkland Islands Holdings PLC

                  Issue of equity on exercise of share options

For immediate release                                        17th August 2006


The board of Falkland Islands Holdings PLC ('FIH') announces the allotment of
5,000 shares following the exercise of options granted under the FIH employee
share option scheme.

Application is being made today for the admission of the new FIH shares to
trading on AIM.

Following the allotment there are 8,468,130 FIH shares in issue.


Enquiries:

Mike West - Group Company Secretary Telephone  [phone]



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