Further re Acquisition

Northacre PLC
21 October 2005



STOCK EXCHANGE ANNOUNCEMENT

21 OCT 05

NORTHACRE - ODEON KENSINGTON

As announced on Tuesday 18th October 2005, Northacre PLC have acquired The Odeon
site, Kensington High Street in a joint venture with Minerva PLC. For the Group
the main features of this transaction comprise; an equity contribution, fee
income and a profit share scheme.

With the Senior Debt facilities approved, it is anticipated that Northacre's
equity requirement will be £550,000. 50% of this will be due for payment at
completion on 25th November 2005 with the balance to be paid on or before 1st
January 2006. The Group will receive up to 2.2% of the gross costs for the
Development Management fees as well as Architectural and Interior Design fees
over the next three to four years. In return for Northacre's participation as
the residential developer partner the profit share return to the company will
range from 5% up to 60% depending on the outcome of the development.

The company also announces that it has issued a convertible loan stock
instrument for £225,000 redeemable in September 2007 at a fixed interest rate of
10%. Under the terms of this instrument, should the loan remain outstanding
after 21st April 06, the loanstock holder has a right to convert the loan into
ordinary shares at a price of 5 pence per share.

Enquiries:

Northacre PLC           020 7349 8000

John Hunter             Chief Executive
Manish Santilale        Finance Director



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