Disposal

R.E.A.Hldgs PLC
27 December 2000

                                 Sale of Investments

The directors of R.E.A. Holdings plc ('REA') announce that the REA group has
sold its share holdings in Vipingo Estate Limited and Vipingo Beach Limited (in
both cases representing 17 per cent of the issued share capital) ('the Vipingo
Investments') for an overall consideration of some £750,000 that is being
satisfied by:

(a) transfer to the REA group of some 5.8 million shares of REA Vipingo
Plantations Limited ('RVP'); and

(b) assignment to the REA group of the benefit of indebtedness of some $500,000
(£339,000) owned by a wholly owned subsidiary of RVP.

The Vipingo Investments were held by the REA group as investments and had a
carrying value of £335,000. No income was received from the investments in 1999
or has been received during the current year.

RVP is a Kenyan company listed on the Nairobi Stock Exchange and engaged in the
growing and spinning of sisal fibre. Prior to the present transaction, the REA
group already owned a 36 per cent shareholding in RVP. The additional
shareholding just acquired will increase that shareholding to 45 per cent.

The transaction will serve to simplify the REA group's interests in East Africa
and to increase the group's control over RVP.