Issue of Equity

R.E.A.Hldgs PLC
18 September 2003


                              R.E.A. HOLDINGS PLC

                         Placing of New Ordinary Shares

The directors of R.E.A. Holdings plc ('REA') announce that Canaccord Capital
(Europe) Limited has placed 1,300,000 new ordinary shares of 25p each (the
'placing shares') at a placing price of 146p per share to raise £1.898 million
before expenses (the 'Placing') for REA. The placing will be made under
authorities and powers granted to the directors of REA by resolutions of REA
shareholders passed at the annual general meeting of REA held on 26 June 2003.

Use of Proceeds

The net proceeds of the placing will be used initially to augment the working
capital resources of the REA group and thereby facilitate completion of the
previously announced restructuring of the group's indebtedness, which is now at
an advanced stage. Subject to satisfactory completion of that restructuring, the
directors believe that the REA group will, following completion of the placing,
be in a position to finance the development of the recently announced additional
6,500 hectare joint venture development in East Kalimantan (adjacent to the
group's existing East Kalimantan property) without further equity funding.

Completion of the Placing

The Placing is conditional upon admission of the placing shares ('admission') to
the Official List of the UK Listing Authority and to trading on the London Stock
Exchange's market for listed securities (for which applications have been made).
It is expected that admission will become effective on 23 September 2003 and
that dealings in the placing shares will commence on that date.


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