Response to announcement

Caledonia Investments PLC
25 September 2003

                           CALEDONIA INVESTMENTS PLC

                            Response to announcement

The Board of Caledonia Investments plc ('Caledonia') notes yesterday's
announcement by the two liquidation vehicles chaired by Sir John Craven.   The
announcement sought to claim that Caledonia's performance had been inconsistent.
Independent statistics published monthly by The Association of Investment
Trust Companies ('AITC')# and which are available on the AITC website at
www.aitc.co.uk, show that as at 31 August 2003 Caledonia, measured on a total
shareholder return ('TSR') basis, is the top performer in its sector (Global
Growth) over 1 year and 3 years  and is in the top quartile over all other
periods measured up to 10 years.

Caledonia's TSR also continues to deliver strong outperformance against the FTSE
All-Share Total Return index as the table below demonstrates.



Total Shareholder Return to 31 August 2003


TSR to 31 August 2003#

                                          Caledonia              FTSE All-Share                Outperformance

Short Term (1 year)                         +42%                      +5%                           +37%

Medium Term (5 years)                       +53%                      -3%                           +56%

Long Term (10 years)                        +164%                     +86%                          +78%



Put another way, £100 invested in Caledonia one year ago would have grown to
£142, or £153 if invested five years ago, or £264 if invested ten years ago.
The same £100 invested in the FTSE All-Share Total Return index over these
periods would be worth only £105, £97 and £186 respectively.



The Board of Caledonia believes that the above demonstrates that the company has
delivered a strong performance record over the short, medium and long term.






25 September 2003


ENQUIRIES:

Caledonia Investments plc                  Tel: [phone]
Tim Ingram, Chief Executive

College Hill                               Tel: [phone]
Tony Friend
Tom Allison


# AITC statistics quoted are derived from the Monthly Information Service dated
September 2003 from the AITC prepared by Fundamental Data Limited on behalf of
AITC Services Limited.


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