Rule 2.10 Details . Update

Falkland Islands Holdings PLC
05 October 2004


                                  Press Release
                                                                
                                                                  5 October 2004



                          Falkland Islands Holdings plc
                                        

The board of Falkland Islands Holdings plc ('FIH') notes the recent substantial
increase in the market price of its shares. The board believes that this has
been caused by current strong interest in oil exploration shares and is linked
to FIH's share holding in Falkland Oil and Gas Limited ('FOGL'). The Admission
of FOGL shares to AIM is expected to take place on 14 October 2004.

As announced on 30 September 2004 FIH will hold 18.1% of FOGL's issued share
capital assuming that the offer for subscription is fully subscribed. Based on
the FOGL placing price of 40p per FOGL share, FIH's investment in FOGL is valued
at £5.78 million.

FIH is in the process of arranging finance for its proposed offer for The
Portsmouth Harbour Ferry Company PLC which could involve the issue of new FIH
shares for cash at a substantially lower price than yesterday's closing
mid-market price of 722.5p.

FIH has 6,544,805 ordinary shares in issue (ISIN number GB0001861599). This
information is given in compliance with Rule 2.10 of the City Code on Takeover &
Mergers.



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