AGM Statement

Medsea Estates Group PLC
15 June 2005


Embargoed to 11.00 a.m. Wednesday 15 June 2005


                            Medsea Estates Group PLC
                                 AGM Statement


At today's annual general meeting Mr Tony Gatehouse, Chairman, will make the
following statement:-

'When we launched on AIM last year, we outlined our plans to maintain the
successful growth of Medsea. I would like to take this opportunity to highlight
a number of initiatives which have been undertaken since the beginning of the
year as part of that process.

      -   We regularly review opportunities for physical expansion in Spain and
          I am pleased to announce that we are about to launch our latest office 
          in Castillon, the Costa Azahar, or in English, the Orange Blossom 
          Coast. This is an attractive area which is under exploited and we 
          believe it will attract significant client interest.

      -   In April, Euromed's first product, the Frondoso Valley development in
          Nuevo Torre Guil, Murcia, was launched. We believe this exciting 
          development, that will ultimately be home to almost 800 residential 
          properties, has great potential.

      -   Last month we announced an agreement with Barca & Boom Real Estates
          of the Netherlands, which has been formed to market Medsea's 
          properties exclusively throughout Holland, Germany, Belgium and 
          Luxembourg.

      -   We have recently invested in two top professionals for two key areas
          of the Group. A dedicated financial controller has joined the team and 
          reviewed all our procedures and controls to ensure that we are in the 
          best shape possible to maximise our performance as the business 
          expands. We have also appointed an in-house marketing and advertising 
          professional who will be working with our agents to take full 
          advantage of the opportunities available to us to expand our client 
          numbers.

      -   A consultancy agreement was signed in February by Euromed Investments 
          with the propsed Arc European Property Fund. It is intended that 
          Euromed will source suitable investment properties for the fund.

'While I have been pleased with our progress, problems within the UK housing
market and general lack of consumer confidence have had an effect on our
business. As already announced, unit sales in the first quarter to March were
lower than the same period of 2004. I am pleased to report that since then we
have seen some improvement in performance although overall unit sales to date
are below the comparable period. I would reiterate my comment in the annual
report that we remain confident for the longer term prospects for our business.'

For further information contact:
Tony Gatehouse, Chairman
Medsea Estates Group PLC                                   Today 0207 067 0700
                                                  Thereafter 0034 96 570 40 02

Juan Carlos Rodriguez Martinez, Chief Executive
Medsea Estates Group PLC                                   Today 0207 067 0700
                                                  Thereafter 0034 96 570 40 02

Roland Cornish/
Noelle Greenaway
Beaumont Cornish Limited                                         0207 628 3396

Terry Garrett/ Alex White
Weber Shandwick Square Mile                                      0207 067 0700






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