Offer Update

Pathfinder Properties PLC
24 August 2001


                                 ANNOUNCEMENT

                                                                24 August 2001

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')

  * Share Offer will close on 10 September 2001

The Board of Pathfinder Properties announces that the Offer will close at
11.30 a.m. on Monday 10 September 2001.

As at 11.30 a.m. on 24 August 2001 valid and complete acceptances under the
Offer had been received in respect of 4,175,132 Recovery 1 Shares,
representing 90.34 per cent of the issued share capital of Recovery 1.

On 23 August 2001 the Company issued a further 126,275 new Ordinary shares of
10p each in connection with the acquisition of Recovery 1 Shares, acceptances
for which were received prior to 11.30 a.m. on 9 August 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 30 August 2001.

The issued share capital of the Company following the issue of the new shares
is £7,832,642.60 divided into 78,326,426 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.

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