AGM Statement

Artisan (UK) PLC
09 September 2003


                                Artisan (UK) plc
                              Chairman's Statement
                    Annual General Meeting 9 September 2003

The following is the text of the statement the Chairman will make at the
Company's AGM to be held at 11.30 this morning.

Welcome to Artisan's fifth AGM. In the sixteen months since I joined the Board
the Company has seen significant changes and I am pleased to report that the new
structure and approach of the management team is having a positive effect.

It has been gratifying to be able to make a steady stream of announcements over
recent months concluding historic issues and advising of the sale of non-core
assets. This has resulted in a substantial reduction in net borrowings and the
application of that income into the core activities of the business,
particularly at Rippon Homes.

With the task of realising non-core assets and old Living Heritage stock
substantially completed the Board is pleased to confirm how it intends to go
forward.

We intend building a more substantial property development business with a
greater emphasis on the residential property market. This involves an organised
search for additional residential development business opportunities, which is
underway, together with a regard for other opportunities that may arise in what
we expect to be a fairly turbulent year for commercial property. The search for
a residential business is targeted in two principal directions. These are to
expand the existing operation at Rippon through the purchase of a subsidiary
business and to find a complimentary business in another region.

Irrespective of the outcome of our business search, Rippon Homes will be built
up over the next few years from the 100 homes a year company we acquired, to a
200 plus houses per annum house builder retaining strong regional brand
recognition. The adoption of the Living Heritage brand to support the sale of
the more exclusive developments at Rippon Homes has started well and we expect
this to help with the development of our residential business.

We have, with the exception of one particular site, now achieved a position
where all the old Living Heritage stock is sold or reserved.

For the current year we can expect another strong set of results from Rippon
Homes, providing the continued favourable market conditions in the North and
Midlands do not sharply reverse. Half-year results should at least reflect
budgeted turnover and margin for the house building operation, although the
cycle of planning and production continues to weight sales towards the second
half of the year.

It is much tougher for Artisan (UK) Developments, with low levels of occupier
demand throughout the office sector. Although half-year margins will not be as
disappointing as last year, the full year result will be dependent on the
success or otherwise of stock sales of offices particularly on the business park
in Huntingdon. Localised conditions in Huntingdon have seen an absence of
potential occupiers, however, we remain confident that when customers return
they will be attracted to the product available, which is not subject to any
significant local competition. In the meantime we continue to focus on forward
sales of property, with speculative development, by and large, limited to that
which is attached to forward sale units.

This year's results should be far less influenced by non-core assets and
activities. After careful negotiation there has been an early realisation of
£400,000 in our investment in Wigmore, with a phased repayment of the remaining
Loan Notes. We have also now completed the disposal of all of our Wigmore
ordinary shares.

We have also agreed a revised basis for our investment with Stratus Services
Group Inc. which should see our preferred shareholding sold back to them for
cash and the issue of additional equity to provide us with a longer term
recovery. The cash element of the settlement is in line with our balance sheet
valuation of the preferred stock. The Stratus realisation is dependant upon
Stratus' own refinancing plan which may take several months to conclude.

This leaves outstanding the litigation over the Company's disposal of Bickerton
which is entering a sensitive stage and therefore precludes comment other than
to say that we currently expect the matter to be concluded in the next six
months. We have already provided for the cost of defending this action.

The Directors are encouraged by trading in the first part of this financial
year, which is ahead of the comparable period last year, and view the prospects
for the rest of the year with confidence. The results in future years will be
dependent upon, a revival in the commercial development markets, further growth
in Rippon's activity and contribution from residential property businesses
acquired.

At last year's AGM we listened to shareholders and undertook a review of
Corporate Governance, with the assistance of professional advisors, the
appointment of a larger firm of auditors, and more comprehensive and timely
communication via the website. I am satisfied with the outcome of these
initiatives, but intend the process to be ongoing as we work to take this
company forward.

It is important that the management of Artisan is properly remunerated for
delivering the performance of the company for shareholders. The remuneration
committee has been considering the basis upon which the executive directors and
subsidiary company directors are remunerated and incentivised. As a consequence
the share option schemes will be used to provide the executives with share
options. The lowest exercise price for the share options will be the market
value at the time the options are granted. The number of shares that can be
vested will be dependent upon the Company's share price performance. The
executive directors bonus scheme is being modified from an entirely
discretionary scheme to one that is in part calculated with strict reference to
the trading performance of the operating companies.

I believe that the company will now be managed with an emphasis on the quality
of earnings. I recognise that shareholders will look forward to a return to
dividend payments and this will happen once firmly established profitability has
been achieved.

Enquiries
------------------------------------------------------
Hansard Communications                   020 7245 1100
Adam Reynolds                     Mobile: [phone]
Ben Simons

Artisan (UK) plc                          01480 436666
Michael Stevens, Chairman
Martyn Freeman, Chief Executive           07879 412773
Chris Musselle, Finance Director          07879 412779

Seymour Pierce Limited                   020 7107 8000
Sarah Wharry



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