Interim Management Statement

GRESHAM HOUSE plc ("the Company")

Interim Management Statement for the three months ended 31 March 2010
(Unaudited)

Introduction

This  Interim Management Statement ("the Statement") has been prepared in  order
to  provide  information to meet the requirements of the UK Listing  Authority's
Disclosure  and Transparency Rules. The Statement covers the three month  period
to  31  March  2010  together  with relevant  information  up  to  the  date  of
publication.

Investment Objective

Gresham  House plc is an authorised investment trust listed on the London  Stock
Exchange. Following the passing of an ordinary resolution at the Company's  2008
Annual  General  Meeting, the Company's objective was  changed  to  realise  the
Group's  assets  over  a  period of approximately five  years  with  a  view  to
returning  capital to shareholders. Having now reviewed this  objective  in  the
light of the opportunities being offered, the liquid resources now available  to
the  Company  and the skill sets of the management team, the Board now  believes
that  it  would be in the best interests of shareholders to expand its base  and
invest  in  commercial property which it believes is likely to offer significant
opportunities  for  above  average  returns to  shareholders.  A  resolution  is
therefore  being proposed at the Annual General Meeting to be held  on  10  June
2010  to revise the investment objective to enable the Company to continue as  a
going concern for the foreseeable future.

Material events and transactions

As  at  31  March  2010 the value of the securities portfolio had  increased  by
approximately 0.65% since 31 December 2009 compared with an increase in the FTSE
All Share index of 5.4%.

The  Company's final results for the year ended 31 December 2009 were  announced
on    28   April   2010   and   are   available   on   the   Company's   website
www.greshamhouse.com.

The  Directors  are  aware of the following significant events  or  transactions
which  have  occurred  in the period from 1 January 2010 to  the  date  of  this
Statement  that  may  have,  or have had, a material  impact  on  the  financial
position of the Company or Group:-

  (i)   the  sale of the investment in Hallin Marine Subsea International plc in
        February 2010 which realised £8.6m;
  (ii)  the investment of £5.5m of these proceeds in corporate bonds with a minimum
        rating of B+;
  (iii) the receipt of £720,000 from the liquidator of Welsh Industrial Investment
        Trust plc following shareholder approval being given to liquidate the
        company;
  (iv)  the  repayment of £8.6 million of bank loans since the year end leaving
        current loans at £17.2 million;
  (v)   the increase of 4.3% in the IPD Quarterly Property Index for Capital Growth
        for the three months ended 31 March 2010; and
  (vi)  the increase in the amount of vacant space within the property portfolio.

The  Company has one class of share capital: ordinary shares of 25p each.  There
have  been  no  changes  in the issued share capital of  the  Company  since  31
December, 2009, which as at today's date, remains at 4,881,880 shares.

Financial Information

Investment - Properties

Investment  properties  are  shown  at fair value  based  on  current  use.  All
investment properties were valued by King Sturge LLP, Chartered Surveyors, as at
31  December 2009 at a combined total of £24,600,000. These external  valuations
were  carried  out on the basis of Market Value in accordance  with  the  latest
edition  of  the  Valuation  Standards published by  the  Royal  Institution  of
Chartered  Surveyors.  The directors do not consider that  there  has  been  any
material change in the value of these properties since year end.

Rental income on the property portfolio for the three months ended 31 March 2010
was  £356,000. This compares with rental income of £2.11 million  for  the  year
ended  31  December 2009. As indicated in the Chief Executive's report contained
within  the  accounts for the year ended 31 December 2009 the amount  of  vacant
space has increased by 60,201 sq. ft. to 821,975 sq. ft. as at 31 March 2010.

Investments - Securities
                                                   31.03.10     31.12.09
                                                      £'000        £'000
Listed securities - on the London Stock Exchange      6,716        1,195
Listed securities - on overseas markets                   -           30
Securities dealt in under AIM                         1,582        9,935
Securities dealt in under PLUS Market                   212          248
Unlisted securities                                   1,405        1,315
                                                     ______       ______
TOTAL                                                 9,915       12,723
                                                     ______       ______


Top Ten Investments at 31 March 2010
                                      Market        % of
                                       Value   portfolio
                                      £'000s      £'000s
Standard Chartered Bank 6% bond‡       1,105        11.1
HSBC Bank 9.875% bond ‡                1,046        10.6
SpaceandPeople plc*                    1,008        10.2
HSBC Bank 5.75% bond ‡                   964         9.7
Scottish & Southern Energy 5.75% bond‡   901         9.1
Welsh Industrial Investment Trust plc‡   788         7.9
Memorial Holdings Limited #              686         6.9
National Grid 6.125% bond ‡              678         6.8
Marks & Spencer 5.625% bond ‡            601         6.1
AudioGravity Holdings Ltd #              320         3.2
                                       -----        ----
                                       8,097        81.6
                                       =====        ====
‡UK and Overseas Listed
* AIM Traded Securities
# Unlisted Securities

Sector Analysis at 31 March 2010
                                         % of net
                                           assets
Financial                                      44
Utilities                                      18
Media & photography                            12
Property investment                             7
Retail                                          6
Engineering                                     5
Automobiles                                     2
Foods                                           2
Chemicals                                       1
Electrical                                      1
Oil & Gas                                       1
Miscellaneous                                   1
                                             ____
                                              100
                                             ____


Comparative movements
                                              31.03.2010   31.12.2009  % change
Basic net asset value per ordinary share     N/available       473.7p
Share price (pence)                                342.5       348.0       -1.6
FTSE All Share index                             2910.19      2760.80       5.4

Further  information  on  the  Company and  Group,  including  a  copy  of  this
Statement, can be found at www.greshamhouse.com.

D Lucie-Smith
Chief Executive Officer

17 May, 2010