Offer Update

Pathfinder Properties PLC
1 May 2001

                                 ANNOUNCEMENT




                                                                    1 May 2001



Recommended offer ('the Offer') by Pathfinder Properties PLC ('Pathfinder
Properties') for Pathfinder Recovery 1 PLC ('Recovery 1')



  * Offer extended to 21 May 2001

  * 14.62 per cent acceptances received

As at 3.00 p.m. on 30 April 2001 (being the first closing date for the Offer)
valid and complete acceptances under the Offer have been received in respect
of 675,730 Recovery 1 Shares, representing 14.62 per cent of the issued share
capital of Recovery 1. Elections for the Limited Cash Alternative were made in
respect of 308,775 Recovery 1 Shares, being 45.7% of the total number of
acceptances.

In addition, acceptances which are not complete in all respects have been
received in respect of a further 109,254 Recovery 1 shares, representing 2.36
per cent of the issued share capital of Recovery 1.

The Offer has been extended until 3.00 p.m. on 21 May 2001.

Before the offer period M.G. Bacchus and G.A. Heggie, being directors of
Pathfinder Properties and Recovery 1, held and continue to hold 5,000 and
32,504 Recovery 1 Shares respectively, representing respectively 0.11 per cent
and 0.7 per cent of the issued ordinary share capital of Recovery 1.
Pathfinder Properties held no shares in Recovery 1 before the offer period and
has not otherwise acquired or agreed to acquire shares in Recovery 1.

On 9 April 2001 M.G. Bacchus purchased 33,000 ordinary shares in Pathfinder
Properties at 15p per share, giving him a holding of 0.12% of the issued share
capital of Pathfinder Properties. On 12 April 2001 S. Dawkins purchased 10,000
ordinary shares in Pathfinder Properties at 15p per share, giving him a
holding of 0.01% of the issued share capital of Pathfinder Properties. Save
for these purchases, there have been no material changes to the information
contained in the offer document dated 9 April 2001 sent to Recovery 1
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 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.