£15m Index-linked Debenture Stock 2017-2019 Issued

Shires Income PLC
20 December 1999


Issue of £15,000,000 3.4375 per cent. Index-linked Debenture
Stock 2017-2019

The Directors of Shires Income plc (the 'Trust') announce the
issue of £15,000,000 of 3.4375 per cent. Index-linked
Debenture Stock 2017-2019 (the 'Stock').  Cazenove & Co. was
the sole arranger.

The Board has been reviewing how the Trust could take
advantage of current fixed interest market conditions to
enhance shareholder returns in the long term.  The issue of
the Stock should benefit the Company as the Board considers
that the return from UK equities over the life of the Stock
will exceed the cost of the Stock.  The issue will, also,
reduce the Trust's average cost of borrowing.

The Stock, which was privately placed, will be secured by a
floating charge over the whole of the Trust's assets and will
rank pari passu with the existing 5 per cent. Index-linked
Debenture Stock 2008-2010.

For further information please contact:

David Williams
Glasgow Investment Managers Limited     0141 572 2700

James Douglas/Melville Trimble
Cazenove & Co.                0171 588 2828