AGM Statement

Northacre PLC
28 September 2005


                                 Northacre plc


                               AGM Statement 2005



-               ' The Group has again suffered further planning and construction
delays in its' development programme. Less buoyant market conditions have
resulted in a slower rate of sales activity.


-               We now expect to receive our profit share entitlement for both
KINGS Chelsea and The Phillimores developments in the current financial year.


-               In respect of KINGS Chelsea an invoice for our £1m + VAT
Threshold Fee has been raised for which payment is due in October 2005. A
further profit bonus is also due upon the sale of the last remaining unsold
apartment.


-               At The Phillimores, four of the remaining eight unsold
apartments are under offer, these four sales are due to exchange within the next
few weeks.


-               The Vicarage Gate Appeal has now been heard and the Inspectors'
decision is due towards the beginning of November. A positive outcome will
result in an early start of the building works on site.


-               During the year a new development opportunity at Park Street,
Mayfair was acquired from Grosvenor with equity provided by private investors. A
revised planning consent has been secured and the works have now commenced.


-               Following the introduction of various measures to improve
efficiency a 52% reduction in our group staff overhead has been achieved in this
financial year.


-               With a promising supply of new opportunities under consideration
we are confident of securing another new scheme for the Group in the near
future.'






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