Sale of 7 Bedford Square

R.E.A.Hldgs PLC
20 March 2001


R.E.A. Holdings plc

Announcement - Sale of 7 Bedford Square

20 March, 2001


Proposed Disposal of Head Office Premises

R.E.A. Holdings plc (the 'company') announces that it exchanged conditional
contracts yesterday for the sale of its head office premises at 7 Bedford
Square, London. With reducing staff numbers at its head office, the property
provides more office space than the company now requires and the board has
decided to move the head office to smaller, rented premises.

The property at 7 Bedford Square, which comprises a long leasehold of
approximately 4,250 sq. ft. (net) of office premises, is owned by R.E.A.
Services Limited, a wholly owned subsidiary of the company. R.E.A. Services
Limited has agreed to sell the property for a gross cash consideration of £2.2
million, to be paid on completion. As at 30 June 2000, the net book value
attributed to the property was £1.5 million.

After repayment of the outstanding mortgage on the property and expenses
associated with the sale, the net proceeds of the sale of £910,000 will be
utilised in reducing the group's indebtedness.

As the sale of the property is a significant transaction so far as the REA
group is concerned, completion of the sale is conditional upon shareholder
approval. An explanatory circular including a notice convening an
extraordinary general meeting of the company to approve the sale will be
despatched to shareholders as soon as practicable. The directors, together
with certain other shareholders accounting for approximately 51 % of the
company's current issued share capital, have irrevocably committed to vote in
favour of the relevant ordinary resolution required to approve the sale.

Preliminary Results Announcement

It is anticipated that the company's announcement of preliminary results for
the year to 31 December 2000 will be released on or about 6 April 2001.



Enquiries

Nigel Newby                         020 7631 3988

Managing Director

ENDS