Offer Update

Pathfinder Properties PLC
6 September 2001


                                 ANNOUNCEMENT

                                                              6 September 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')


The Board of Pathfinder Properties announces that, as at 11.30 a.m. on 5
September 2001, valid and complete acceptances under the Offer had been
received in respect of 4,238,448 Recovery 1 Shares, representing 91.70 per
cent of the issued share capital of Recovery 1.

The Company has issued a further 48,724 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 29 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 12 September 2001.

The issued share capital of the Company following the issue of the new shares
is £7,837,515 divided into 78,375,150 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.