Statement re. Press Comment

Caledonia Investments PLC
07 July 2003


                                   Caledonia


The Board of Caledonia Investments plc ('the Company') has noted the today's
press speculation.  The Company confirms that it has received a proposal for a
restructuring of the Company.  The restructuring would involve a total
realisation of the Company's assets over an uncertain period of time.  There is
no certainty as to the amount that would be realised or what would ultimately
become available to shareholders, but the Board believes it would be at a
significant discount to the Company's current net asset value.  The Board has
considered the proposal with its advisers, N M Rothschild & Sons Limited and
Cazenove & Co Ltd, and with the benefit of that advice has unanimously concluded
that the proposal is not in the best interests of its shareholders. Shareholders
will be kept informed of any relevant developments.


The Board's deliberations on these proposals are against a backdrop of its
successful record of delivering total shareholder return outperformance against
its benchmark of the FTSE All-Share.  It has outperformed this benchmark by 33%
and 78% over the last five and ten years to 30 June 2003 respectively.
Caledonia has also performed strongly over the shorter term with 19%
outperformance for the 12 months to 30 June 2003. Its superior performance
places it in the top quartile of the AITC peer group over each of these periods.
  Caledonia has a policy of delivering progressive annual dividends with a
36year record of unbroken annual dividend increases.


The Board of Caledonia continues to believe that its strategy, as set out in its
circular to shareholders on 16 January 2003, which was overwhelmingly endorsed
by shareholders at the EGM on 12 February 2003, is in the best interest of all
shareholders.



                                                                     7 July 2003






ENQUIRIES:

Caledonia                                               Tel: [phone]
Tim Ingram
Chief Executive

College Hill                                            Tel: [phone]
Alex Sandberg
Tony Friend







 NOTES TO EDITORS



Caledonia is a long established investment company with international scope
listed on the London Stock Exchange.  Since April 2003 Caledonia has been
classified in the AITC Global Growth sector of investment trusts where its
investment performance puts it in the top quartile by reference to one, five and
ten year total shareholder returns for the period to 30 June 2003.  Caledonia's
strategy has delivered outperformance against its benchmark FTSE All-Share Total
Return index of 33% over the five year period to 30 June 2003 and 79% over the
ten year period to 30 June 2003.  Its total shareholder return outperformance
for the 12 months to 30 June 2003 was 19%.  Caledonia has a policy of delivering
progressive annual dividends with a 36-year record of unbroken annual dividend
increases. Through holding a diversified portfolio, Caledonia aims to maintain a
medium overall risk position.

At 30 June 2003, Caledonia had an unaudited Net Asset Value of 1084p per
ordinary share before the deduction of 18p per share for the final dividend as
proposed by the directors in relation to the year ended 31 March 2003.  Based on
the share price as at the end of June 2003 the discount to its Net Asset Value
per share was 22.4%.

Subject to approval at the Annual General Meeting to be held on 18 July 2003 the
proposed final dividend of 18p per share will be paid on 31 July 2003 to
shareholders on the register at the close of business on 4 July 2003.  The
shares were marked ex-dividend on 2 July 2003.

Caledonia's strategy is to focus on a portfolio of around 30 to 40 principal
investments, where it has significant and influential stakes with a policy that
at least 50% of the total portfolio should be in quoted securities or other
liquid assets.  New investments will typically be in the range £10 million to
£25 million. Careful control is exercised over costs, notwithstanding
Caledonia's active and participative management style. The Board believes that
Caledonia has a long established and valuable reputation for being a supportive
long term investor, which brings a strong deal flow of opportunities not always
available to others.

Caledonia's investments are focused on a selected range of sectors where it has
good in-house knowledge that can add value to management of investee companies.
Where particular expertise is not held in-house, investments may be made through
third party managed funds where Caledonia will often seek a significant stake in
the management company.

Caledonia's selected sectors are: Financial: comprising 32% of total assets,
including holdings in Close Brothers, ICAP and Rathbone Brothers; Leisure and
Media: comprising 20% of the total assets, including holdings in Kerzner
International and The Sloane Club; Managed General Funds: comprising 17% of the
total assets includes holdings in British Empire Securities and a fund managed
by Aberforth Partners; Industrial and Services: comprising 16% of the total
assets, including investments in Offshore Logistics and Amber Industrial;
Property: comprising 11% of the total assets, including the holding in Quintain
Estates; Technology: comprising 2%; and other: comprising 2% of the total
assets.   The percentages of the total assets quoted are as at 30 June 2003.

With investment trust status Caledonia will not be subject in the future to
liability for corporation tax on chargeable gains.  As a result, Caledonia
believes it will be able to build greater value for shareholders and be more
appealing to retail shareholders which ultimately should contribute towards a
lower discount of Caledonia's share price to Net Asset Value per share.


Caledonia is a member of the Association of Investment Trust Companies (AITC).


For further information please visit www.caledonia.com





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