Offer Update (correction)

Falkland Islands Holdings PLC
25 October 2004

The following amendment has been made to RNS No 4496E released at 15:58 today.

Footnotes have been added.  No changes have been made to the main body of the 
text.

                         Falkland Islands Holdings plc

                                    Offer for

                    The Portsmouth Harbour Ferry Company PLC

For immediate release 
                                                                25 October 2004

The Board of Falkland Islands Holdings PLC ('FIH') is pleased to announce an
increase in the terms of its offer for the whole of the issued share capital of
The Portsmouth Harbour Ferry Company PLC ('PHFC') not already owned by FIH ('the
Offer').

The Board of PHFC has declared a dividend of 24p per PHFC share payable on 29
October 2004 to PHFC shareholders on the register on 20 October 2004.
Under the terms of the Offer, FIH would have been entitled to the benefit of all
dividends declared, made or paid after 11 October 2004.

FIH hereby improves the value of the Offer by permitting accepting PHFC
shareholders to retain the benefit of this dividend.

Enquiries

Falkland Islands Holdings plc
David Hudd, Chairman Tel: [phone]

Dawnay, Day Corporate Finance Ltd

David Floyd, Director Tel: [phone]
College Hill Associates Ltd
Ben Brewerton Tel: [phone]

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

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

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 nyone 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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