Re Agreement

Solitaire Group PLC
26 February 2001



    SOLITAIRE GROUP PLC

LAUNCH OF FIRST HOUSING INVESTMENT TRUST PLC


    Solitaire Group plc ('Solitaire') announces that it has agreed to enter
    into a property management agreement ('the Agreement') with First Housing
    Investment Trust PLC ('FHIT'). FHIT has been set up to invest in
    residential properties. It has commenced a funding exercise to raise £32.6
    million of equity and, if successful, will apply for its shares to be
    listed on the London Stock Exchange. A marketing document is being
    distributed today by Williams de Broe, the sponsors of the issue.

    FHIT is expected to be the first authorised housing investment trust under
    the Taxes Act to be admitted to trading on the London Stock Exchange and
    will invest in a spread of residential accommodation in, or near, urban
    locations in England, Scotland and Wales. In addition to the equity
    funding FHIT has secured banking facilities and, assuming full investment,
    the total portfolio will have an initial value in excess of £55 million.
    The equity of FHIT will be split into income shares which are expected to
    yield 10% per annum gross in their first full year of existence, and
    capital shares (which, based on an increase in house prices of 5% per
    annum over the ten year life of the trust), are estimated to grow by 12.6%
    per annum.

    The gross yield on the investment properties is expected to be 9% per
    annum and Solitaire will receive, under the Agreement, 10% of the gross
    rental income. Accordingly, this could have a significant effect on
    Solitaire's pre-tax profits in the year ending 31st December 2001.