Disposal

R.E.A. HOLDINGS PLC
2 August 1999

The directors of R.E.A. Holdings Plc ('REA') announce that contracts have been
exchanged for the sale of a freehold property ('the property') at 69 Southwark
Bridge Road owned by a wholly owned subsidiary of REA.  The consideration for
the sale will be £1,325,000 to be paid in cash on completion in approximately
eight weeks' time.

The property comprises some 8,000 sq ft net of offices together with a
residential area and licensed premises.  Approximately 2,000 sq ft net of the
office space is leased for a period of ten years to a subsidiary of REA.  The
remainder of the property is let to unconnected third party tenants.

The property contributed some £16,000 to REA consolidated profits before
taxation in 1998 and was carried at a value of £1 million in the consolidated
balance sheet of REA at 31 December 1998.

The proceeds from the sale will be applied as to £700,000 in repayment of 
borrowings secured on the property and, as to the balance, in providing 
additional working capital resources for the core businesses of REA and its
subsidiaries.

The directors of REA consider that the sale represents a helpful further step in
implementation of REA's previously stated policy of concentrating on core
operations and of divesting assets and businesses less central to those
operations.