Stmnt re Share Price Movement

Falkland Islands Holdings PLC
28 February 2008



                         Falkland Islands Holdings PLC

                       Statement re share price movement

28 February 2008

Falkland Islands Holdings PLC ('FIH') notes the increase in its share price
which may be attributable to the announcement by Desire Petroleum PLC of a
farm-in agreement and drilling of exploration wells in the North Falkland basin.

FIH announces that the potential acquisition of a UK based company, which would
be partly financed by the issue of new FIH shares, is at an advanced stage of
negotiation.

A further announcement will be made in due course.




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