AGM Statement

Terrace Hill Group PLC
13 March 2006

             Terrace Hill Group PLC ('Terrace Hill' or 'the Group')

                                 AGM Statement
                                      And
       New Contract to Develop 160,000 sq ft Campus for Gateshead College


Overview:

•    Continue to perform and deliver to shareholders

•    Acknowledged as the best Scottish listed company performer in February
     by the Bank of Scotland with an 11% total shareholder return

•    Triple Net Asset Value (TNAV) up by over 20% to 48.06p per share

•    Total dividend for the year up 50% to 1.2p per share

•    Development programme up 50% to £900m

•    Continue to expand corporate strategy to deliver increased value for
     shareholders

•    Major new contract win - developing 160,000 sq ft campus for Gateshead
     College on Baltic Business Quarter in  Tyne & Wear


Terrace Hill, the AIM-listed property group, held its Annual General Meeting 
('AGM') on 10 March 2006 and all resolutions were duly passed.  At the meeting
Managing Director Philip Leech made the following statement:

'We continue to perform strongly and to deliver on our promises to shareholders,
increasing our activity levels and expanding our portfolio.  This was
highlighted in our recent results where we again increased the Triple Net Asset
Value (TNAV) of the Group, this time by over 20% to 48.06p per share. We also
lifted the total dividend for the year to 1.2p per share from 0.8p in 2004 to
reward shareholders for their support and reflect the performance of the Group.
The Bank of Scotland acknowledged our accomplishment when it named Terrace Hill
the best performing Scottish listed company in February, for showing an 11%
total shareholder return (a measure of the return to an investor in terms of
both share price growth and dividend yield).

'Encouragingly and as reported in February, we have enlarged our development
programme to around £900m from £600m in 2004, acquiring a number of new
properties and sites, both commercial and residential.  These are at various
stages of development and include income producing assets with redevelopment
potential, such as the Castle Gate House in Sheffield, which we acquired in a
joint venture for £7.3m.  Currently let to retailer BHS, our aim is to develop a
mixed use scheme including retail, residential, health and fitness.

'Since the results we have contracted to develop a new 160,000 sq ft campus for
Gateshead College on Baltic Business Quarter in Tyne & Wear.  This will stand on
the corner of Hawks Road and Quarryfield Road and marks an exciting start to the
1.5m sq ft scheme.  Construction began in February and is expected to be
completed by late 2007.

'While we are focused on seeking acquisition opportunities to further increase
our development programme, we also continue to explore other means of building
the business, as highlighted by the establishment of our property fund
management division in 2005.  We are also considering spinning out the house
building operation, which we believe could create increased value for our
shareholders.

'I believe that our flexible and opportunistic approach to market trends
together with our highly experienced, regionally based management teams will
take Terrace Hill to new heights.  With a target internal rate of return of
20-25% per annum, we look forward to further rewarding shareholders and remain
confident that 2006 will meet all our expectations.'


                                  * * ENDS * *


For further information please contact:

Philip Leech, Group Managing Director             Tel: [phone]

Alasdair Robinson, Noble & Company Limited        Tel: [phone]

Isabel Crossley, St Brides Media & Finance Ltd    Tel: [phone]


Notes to editors:

Terrace Hill Group PLC is an AIM traded Property Group with NAV £76 million and
market capitalisation around £105.78m (based on mid share price on 9 March 2006
of 56.4p).  It has two divisions, Commercial Development throughout the UK and
Residential Investment and Development in Scotland and the North of England,
with a development programme of around £900 million with £335 million underway.
Terrace Hill reported an increase of over 20% in pro-forma Triple NAV to 48.06p
per share in the year to 31 October 2005, and a 40% increase in final dividend
from 0.5p per share to 0.7p per share.


                      This information is provided by RNS
            The company news service from the London Stock Exchange