Offer Update

Pathfinder Properties PLC
11 September 2001

                                 ANNOUNCEMENT



                                                             11 September 2001



Recommended revised offer ('the 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 the close of the
Offer at 11.30 a.m. on 10 September 2001, valid and complete acceptances under
the Offer had been received in respect of 4,300,609 Recovery 1 Shares,
representing 93.05 per cent of the issued share capital of Recovery 1.

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.