Offer Lapsed

Pathfinder Properties PLC
6 June 2001

                                 ANNOUNCEMENT


                                                                   6 June 2001

Recommended offer ('the Offer') by Pathfinder Properties PLC ('Pathfinder
Properties') for Pathfinder Recovery 2 PLC ('Recovery 2')

  * 20.26 per cent acceptances received
  * Offer lapses

As at11.30 a.m. on 6 June 2001 (being the extended closing date for the Offer)
valid and complete acceptances under the Offer have been received in respect
of 976,452 Recovery 2 Shares, representing 20.26 per cent of the issued share
capital of Recovery 2. Elections for the Limited Cash Alternative were made in
respect of 435,866 Recovery 2 Shares, being 44.64 per cent of the total number
of acceptances.

In addition, acceptances which are not complete in all respects have been
received in respect of a further 140,961 Recovery 2 shares, representing 2.92
per cent of the issued share capital of Recovery 2.

The acceptance condition set out in the Offer document dated 9 April 2001 has
not been satisfied and accordingly the Offer has lapsed.

Before the offer period M.G. Bacchus and G.A. Heggie, being directors of
Pathfinder Properties and Recovery 2, held and continue to hold 10,500 and
55,857 Recovery 2 Shares respectively, representing respectively 0.22 per cent
and 1.16 per cent of the issued ordinary share capital of Recovery 2.
Pathfinder Properties held no shares in Recovery 2 before the offer period and
has not otherwise acquired or agreed to acquire shares in Recovery 2.

The acceptances referred to above include acceptances received from the
following persons who are, or may be regarded as, acting in concert with
Pathfinder Properties:

                 Shareholder                           Number of Shares
           Pathfinder Recovery 1 PLC                        132,500
                  G.A. Heggie                                55,857
                  M.G. Bacchus                               10,500
                    R.A. Lo                                  10,416

There have been no material changes to the information contained in the
document dated 18 May 2001 sent to Recovery 2 shareholders.

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.

Nabarro Wells & Co. Limited has approved the contents of this announcement for
the purposes of Section 57 of the Financial Services Act 1986.