Disposal

Capital & Regional plc
30 July 2004

                                                                    30 July 2004

                              CAPITAL & REGIONAL PLC:
                            SALE OF THE STACK, DUNDEE


Capital & Regional plc, the co-investing property asset manager, has announced
that the £550 million X-Leisure Fund, has successfully completed its first
disposal with the sale of The Stack Leisure Park in Dundee to Towntalk Ltd.

The sale of The Stack by X-Leisure is consistent with the Fund's strategy of
focusing their specialist skills on the larger leisure destinations where value
and performance is enhanced through proactive active management and consumer led
marketing and PR strategies.

X-Leisure's CEO, PY Gerbeau said "Our Group is proving to the property industry
that our strategic approach, which includes the implementation of a programme of
events and entertainment supported by marketing and promotions, increases both
footfall and dwell time resulting in a higher spend per park and in turn an
increase in rental value and capital values - the 'virtuous circle'".

                                    - ENDS -

For further information:

Capital & Regional:
Martin Barber, Chief Executive             Tel:  [phone]
Polly Farrell - X-Leisure                  Tel:  [phone]

Hmark
Sarah Harrison                             Tel:  [phone]

Hudson Sandler
Michael Sandler / James Benjamin           Tel:  [phone]


Notes to Editor:

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. It founded the Mall and Junction Limited Partnerships in conjunction
with Morley Fund Management.

Capital & Regional 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.

For further information:  www.capreg.com


About X-Leisure

•    The £550 million X-Leisure Fund, the largest Leisure Fund in the UK, was 
     launched in March 2004 from the former MWB Leisure Funds and has a life of
     15 years.
•    Capital & Regional's specialist Leisure division, X-Leisure, is the 
     property and asset manager, Hermes Investment Management Limited is the 
     Fund Manager.
•    PY Gerbeau is CEO of X-Leisure.
•    The X-Leisure Fund owns and manages 17 entertainment and leisure
     destinations providing 2.9m sq ft of accommodation across the UK attracting 
     more than 45m visitors annually.
•    X-Leisure also owns and manages the award winning Xscape brand and The
     Great Northern Warehouse in Manchester.
•    www.x-leisure.co.uk
•    www.xscape.co.uk


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