Holding(s) in Company

Caledonia Investments PLC
07 May 2004

Reduction of an interest in shares

Caledonia Investments plc ('Caledonia' or the 'Company') announces that it has
today received notification pursuant to section 198 of the Companies Act 1985
(the 'Act') from The Cayzer Trust Company Limited ('CTC') that the interest of
CTC in Caledonia which arises pursuant to voting and pre-emption arrangements
entered into on 15 March 2004 by CTC with a minority group of CTC's shareholders
(the 'Minority Group') has decreased as a result of the disposal of 714,941
shares in Caledonia by the Minority Group. These arrangements form part of the
settlement terms agreed between CTC and the Minority Group referred to in the
announcement released by Caledonia on 15 March 2004 regarding its proposals for
a return of funds to ordinary shareholders.

CTC is deemed by virtue of section 208(4)(b) of the Act to be interested in all
of the Caledonia shares to which the above voting and pre-emption arrangements
relate. Following the disposals, CTC is interested in a total of 27,661,762
shares in Caledonia (representing 38.09% of Caledonia's issued ordinary share
capital), of which 244,636 shares (representing 0.33% of Caledonia's issued
ordinary share capital) are shares remaining subject to these arrangements. Of
the shares sold by the Minority Group, 483,816 shares were transferred to
persons who are not members of the Cayzer family concert party ('Concert Party
'), as a consequence of which the Concert Party's total holding in Caledonia has
reduced to 35,306,734 shares, representing 48.62% of the issued ordinary share
capital.

The registered holders of the shares sold, so far as is known to CTC, were as
follows:

Name of registered holder                              No. of ordinary shares

Smith & Williamson Nominees Limited                    472,268
Smith & Williamson PEP                                 4,055
Mr. Ian Molson and Mrs. Verena Molson                  2,699
Mrs. Verena Molson                                     4,794
Mrs. Linda Kinvara Holder                              97,656
Sir James Cayzer, Bt.                                  44,569
Mr. Nigel Cayzer                                       88,900


Enquiries:

G P Denison, Company Secretary                             Tel: [phone]

7 May 2004




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