Exercise of Warrant Rights

R.E.A.Hldgs PLC
07 September 2006


R.E.A. Holdings plc (the 'company')

Exercise of Warrant Rights

The company has received notices at 31 August 2006 from holders of 757,458 
warrants exercising the rights attaching to those warrants. Holders of 740,210 
warrants have elected to subscribe 740,210 ordinary shares of 25p each of the 
company ('ordinary shares') at the warrant subscription price of 60p per 
ordinary share and one holder of 17,248 warrants has elected to convert 10,349 
9 per cent cumulative preference shares of £1 each of the company ('preference
shares') into 17,248 ordinary shares at 0.60 preference share per ordinary 
share.

Accordingly the company has allotted 757,458 ordinary shares, subject to 
admission of those shares to the Official List of the UK Listing Authority and 
to trading on the London Stock Exchange's market for listed securities.

In this connection application is being made for the 757,458 new ordinary shares
to be admitted to the Official List of the UK Listing Authority and to trading 
on London Stock Exchange's market for listed securities. It is expected that 
admission will become effective on 11th September 2006 and that dealings in the 
new ordinary shares will commence on that date.

One further exercise date, namely 29 September 2006, remains for warrant holders
to exercise their rights. To the extent that a holder of warrants does not 
exercise his warrant rights on or before 29 September 2006, his warrants will be
exercised on his behalf by 30 October 2006, the ordinary shares resulting from 
such exercise sold and the net proceeds of sale, after deduction of the cost of 
subscribing such ordinary shares, distributed to the holder (provided that such 
net proceeds exceed £3).




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