Offer Update

Pathfinder Properties PLC
6 June 2001

                                 ANNOUNCEMENT



                                                                   6 June 2001



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



  * 50.06 per cent acceptances received
  * Offer declared unconditional in all respects
  * Share Offer extended until further notice
  * Limited Cash Alternative will remain open until 20 June 2001 and will
    then close.

As at 11.30 a.m. on 6 June 2001 (being the extended closing date for the
Revised Offer) valid and complete acceptances under the Offer have been
received in respect of 2,313,481 Recovery 1 Shares, representing 50.06 per
cent of the issued share capital of Recovery 1. Elections for the Limited Cash
Alternative were made in respect of 1,575,121 Recovery 1 Shares, being 68.08
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 27,956 Recovery 1 shares, representing 0.6
per cent of the issued share capital of Recovery 1. Pathfinder Properties has
elected to treat such acceptances as valid in all respects as at the date of
their receipt pursuant to the provisions of paragraph 5( c ) of Part B of Part
IV of the revised offer document dated 18 May 2001.

The Share Offer has been extended until further notice but the Limited Cash
Alternative will remain open until 11.30 a.m. on 20 June 2001, when it will
close.

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.

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 2 PLC                        220,000
                  G.A. Heggie                                32,504
                  M.G. Bacchus                               5,000



There have been no material changes to the information contained in the
revised offer document dated 18 May 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 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.