Issue of Equity

Pathfinder Properties PLC
7 January 2002

                                 ANNOUNCEMENT




                                                                7 January 2002

Recommended revised offer ('the Offer' or 'the Revised Offer') by Pathfinder
Properties PLC ('Pathfinder Properties' or 'the Company') for Pathfinder
Recovery 1 PLC ('Recovery 1')

The Board of Pathfinder Properties announces that the Company has issued a
further 123,575 new Ordinary shares of 10p each in connection with the
acquisition of Recovery 1 Shares pursuant to the Offer. Application has been
made for these new shares to be admitted to trading on the Alternative
Investment Market of the London Stock Exchange and it is expected that
dealings in the new shares will commence on 11 January 2002.

The issued share capital of the Company following the issue of the new shares
is £7,974,542.80 divided into 79,745,428 Ordinary shares of 10p each.

The directors of Pathfinder Properties accept responsibility for the
information contained in this announcement. To the best of the knowledge and
belief of such directors (who have taken all reasonable care to ensure that
such is the case) the information contained in this announcement is in
accordance with the facts and does not omit anything likely to affect the
import of such information.