Italian Contract Update

Medsea Estates Group PLC
10 July 2006


For immediate release                                               10 July 2006


                            Medsea Estates Group Plc

                            Italian Contract Update

Medsea Estates Group Plc, the AIM-listed Spanish-based estate agency group, has
signed a further five year exclusive contract with Bella Calabria SRL of Italy,
which the management believes will generate sales for Medsea in excess of Euros
4m annually.

The contract states that Medsea should sell a minimum of 250 units a year and,
with 178 sales already completed, the company expects to exceed this minimum
figure.

Chairman Tony Gatehouse said: 'Our Italian venture is already a huge success, as
is shown by the number of units we have already sold this year. We have exclusive
rights to a range of low-cost beach front properties along the Calabrian coast in
southern Italy. The demand has exceeded even our high expectations and there is
every indication that it will continue to grow.' 

The new developments include townhouses and apartments, and prices start at
£36,000. Medsea also has exclusive rights to market an additional cliff-top
development alongside a top ranking golf course which is being built a short
distance inland.


For further information contact:

Tony Gatehouse, Chairman, Medsea                                  0034 96 570 42
Juan Carlos Rodriguez Martinez, Chief Executive, Medea            0034 96 570 02

Imran Ahmad, Director, HB Corporate                                0207 510 8642

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


Notes to editors

Medsea Estates Group Plc is a leading Spanish-based estate agency group which
floated on AIM in August 2004. It was established in 1998 to service the
marketplace of the increasing number of UK and Irish nationals looking to
acquire residential properties in Spain.

Over the past six years the group has expanded to become one of the leading
agents within the area and now operates in a wide range of other European
countries including Italy, Portugal, Turkey, Germany and the Benelux countries.



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