Offer Update

Falkland Islands Holdings PLC
27 October 2004



                                  Press Release

                         Falkland Islands Holdings plc

                                    Offer for

                    The Portsmouth Harbour Ferry Company PLC

For immediate release                                            27 October 2004

On 25 October 2004 the Board of Falkland Islands Holdings PLC ('FIH') announced
an improvement 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 Takeover Code requires that an Offer remains open for at least 14 days
following any revision. Accordingly the board of FIH is pleased to announce that
the closing date of the Offer has been extended to 3pm 15 November 2004.

As at 3pm today acceptances of the Offer have been received in respect of 7,527
PHFC Shares representing 3.3% of its issued share capital. Prior to the
commencement of the offer period FIH held 61,149 PHFC Shares representing
approximately 27% of PHFC's issued share capital. The aggregate of acceptances
received and PHFC Shares held is 68,676 PHFC Shares, representing approximately
30% of PHFC's issued share capital.

Enquiries

Falkland Islands Holdings plc
David Hudd, Chairman Tel:                                    07771 893 267

Dawnay, Day Corporate Finance Ltd
David Floyd, Director Tel:                                   020 7509 4570

College Hill Associates Ltd
Ben Brewerton Tel:                                           020 7457 2020

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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