Acquisition of CULS

Capital & Regional plc
22 June 2005

                                                                    22 June 2005


                              CAPITAL & REGIONAL PLC

          ACQUISITION OF CONVERTIBLE UNSECURED LOAN STOCK FOR CANCELLATION


Capital & Regional plc, the co-investing property asset manager, today announces
that it has purchased for cancellation a further £6,168,764 in nominal value of
its Convertible Unsecured Loan Stock (CULS) for a total cost of £26.7m.


                                    - ENDS -


For further information:
Capital & Regional
Martin Barber, Chief Executive                               Tel.  [phone]
William Sunnucks, Group Finance Director                     Tel.  [phone]


gcg hudson sandler                                           Tel:  [phone]
Michael Sandler / James Benjamin


Notes to Editors

About Capital & Regional plc

Capital & Regional is the co-investing asset manager which specialises in town
centre shopping centres, out of town retail parks, and urban entertainment
complexes.

Capital & Regional founded the Mall and Junction Funds in conjunction with
Morley Fund Management.  It also founded the X-Leisure fund with Hermes
Investment Management Limited, and has a number of other joint ventures and
developments.  Its shares are quoted on the London Stock Exchange.

In 1996 the company issued Convertible Unsecured Loan Stock with a nominal value
of £26,054,057.   £1,412,070 was converted in 1997.  Since September 2004 the
company has spent £72.2m on buybacks which have reduced the total outstanding to
20% of the original amount issued.

For further information see www.capreg.com






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