Offer Update

Pathfinder Properties PLC
19 July 2001

                                 ANNOUNCEMENT




                                                                  19 July 2001



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



  * 89.55 per cent acceptances received as at 11 July 2001

  * Share Offer remains open until further notice



As at 11.30 a.m. on 11 July 2001 valid and complete acceptances under the
Offer had been received in respect of 4,138,695 Recovery 1 Shares,
representing 89.55 per cent of the issued share capital of Recovery 1.

The Company has issued a further 57,048 new Ordinary shares of 10p each in
connection with the acquisition of Recovery 1 Shares, acceptances for which
were received between 4 July and 11 July 2001. 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 25 July 2001.

The issued share capital of the Company following the issue of the new shares
is £7,786,530.90 divided into 77,865,309 Ordinary shares of 10p each.

In addition, on 6 July 2001 cash consideration of £1,750 was paid in respect
of 1,000 Recovery 1 Shares, for which incomplete acceptances (now complete in
all respects) were received prior to the closing of the Limited Cash
Alternative on 20 June 2001.

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.