Offer Update

Pathfinder Properties PLC
21 June 2001

                                 ANNOUNCEMENT



                                                                  21 June 2001



Recommended revised offer ('the Offer' or 'the Revised Offer') by Pathfinder
Properties PLC ('Pathfinder Properties') for Pathfinder Recovery 1 PLC ('
Recovery 1')



  * 87.41 per cent acceptances received
  * Share Offer remains open until further notice
  * Limited Cash Alternative closed at 11.30 a.m. on 20 June 2001

As at 11.30 a.m. on 20 June 2001 (being the final closing date for the Limited
Cash Alternative under the terms of the Revised Offer) valid and complete
acceptances under the Offer have been received in respect of 4,039,874
Recovery 1 Shares, representing 87.41 per cent of the issued share capital of
Recovery 1. Elections for the Limited Cash Alternative were made in respect of
3,191,907 Recovery 1 Shares, being 79.01 per cent of the total number of
acceptances.

In addition, acceptances which are not complete in all respects have been
received in respect of a further 70,864 Recovery 1 shares, representing 1.53
per cent of the issued share capital of Recovery 1. Elections for the Limited
Cash Alternative were made in respect of 63,020 Recovery 1 Shares, being 88.93
per cent of the total number of incomplete acceptances.

Pathfinder Properties has elected to treat such incomplete acceptances as
valid in all respects as at the date of their receipt pursuant to the
provisions of paragraph 5 (c) of Part B of Part IV of the Revised Offer
Document dated 18 May 2001.

The Share Offer remains open until further notice but the Limited Cash
Alternative closed at 11.30 a.m. on 20 June 2001.

Pathfinder Properties may, at its discretion, exercise its rights to buy out
minority shareholders in the event that it has by virtue of acceptances of the
Offer acquired or contracted to acquire not less than 90% in value of Recovery
1 Shares. Any notice to buy out minority shareholders would be given within
two months from the date Pathfinder Properties had acquired or contracted to
acquire the requisite Shares and provided that this was achieved by 9 August
2001.

Before the offer period M.G. Bacchus and G.A. Heggie, being directors of
Pathfinder Properties and Recovery 1, held and continue to hold 5,000 and
32,504 Recovery 1 Shares respectively, representing respectively 0.11 per cent
and 0.7 per cent of the issued ordinary share capital of Recovery 1.
Pathfinder Properties held no shares in Recovery 1 before the offer period and
has not otherwise acquired or agreed to acquire shares in Recovery 1.

The acceptances referred to above include acceptances received from the
following persons who are, or may be regarded as, acting in concert with
Pathfinder Properties:
                  Shareholder                           Number of Shares
           Pathfinder Recovery 2 PLC                        220,000
                  G.A. Heggie                                32,504
                  M.G. Bacchus                               5,000



On 13 June 2001 M.G. Bacchus purchased 33,000 ordinary shares in Pathfinder
Properties at 15p per share, increasing his holding to 120,000 shares. On 14
June 2001 S.P. Dawkins purchased 20,000 ordinary shares in Pathfinder
Properties at 14.75p per share, increasing his holding to 30,000 shares. Save
as aforesaid, there have been no material changes to the information contained
in the Revised Offer Document dated 18 May 2001 sent to Recovery 1
shareholders.

The directors of Pathfinder Properties accept responsibility for the
information contained in this announcement. To the best of the knowledge and
belief of such directors (who have taken all reasonable care to ensure that
such is the case) the information contained in this announcement is in
accordance with the facts and does not omit anything likely to affect the
import of such information.

Nabarro Wells & Co. Limited has approved the contents of this announcement for
the purposes of Section 57 of the Financial Services Act 1986.