Issue of Equity

Falkland Islands Holdings PLC
22 December 2004


                         Falkland Islands Holdings plc
                              Issue of new shares


For immediate release                                           22 December 2004

The board of Falkland Islands Holdings plc ('FIH') announces that it has today
applied for the admission of 99,155 new FIH Shares to trading on AIM.

The new FIH Shares are being issued in connection with the receipt of further
acceptances of the offer by FIH for the whole of the issued share capital of The
Portsmouth Harbour Ferry Company PLC ('PHFC').

Following the issue of 99,155 new FIH shares referred to above FIH has 8,188,444
shares in issue.


Enquiries

Dawnay, Day Corporate Finance Ltd

David Floyd, Director                                         Tel: [phone]


The persons responsible for this announcement are the directors of FIH.

Dawnay Day has approved the contents of this announcement for the purposes of
s21 of the Financial Services and Markets Act 2000.

Dawnay, Day Corporate Finance Limited ('Dawnay Day'), which is authorised and
regulated in the United Kingdom by the FSA, is acting exclusively for FIH and
for no one else in connection with the Offer and will not be responsible to
anyone other than FIH for providing the protections afforded to its customers or
for providing advice in relation to the Offer.

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
PART IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, SOUTH AFRICA OR
JAPAN


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