Property Acquisition

First Property Group PLC
08 August 2005


Embargoed until 7am, 8 August 2005

            First Property Group Announces First Polish Acquisition

First Property Group plc ('Fprop' or 'the Company') (AIM: FPO), the online
commercial property transaction platform and property asset manager, announces
that it has completed the purchase of its first property outside of the UK, a
10,200 sq ft. retail complex, consisting of a supermarket and pharmacy based in
a densely populated residential area of Warsaw, Poland.

The acquisition was for a consideration of £1.077 million (zl6.3 million) and is
the first property to be bought by the Company's newly opened office in Warsaw.
The deal underlines Fprop's strategy of sourcing commercial property investment
opportunities in parts of the world, such as Eastern and Central Europe, where
higher yields are available and where the Company believes the rate of growth
will be better than in the UK.

The properties are let to two top covenants, namely: Jeronimo, a leading
Portuguese supermarket chain with 600 Biedronka stores in Poland, and Rossman,
the market leading German pharmacy with over 1,450 stores in Germany, Poland,
Hungary and the Czech Republic, for a rent of c. £100,000 per annum, 
representing a yield of 9.3% per annum. After all costs, the property is 
expected to deliver arate of return on equity of over 15% per annum.

Commenting on the purchase, Ben Habib, CEO of Fprop, said: 'Given the sharp rise
in commercial property investment values in the UK, we have, for some time, been
exploring opportunities abroad and in particular in Central and Eastern Europe,
where growth rates are currently higher. This is the first investment to be made
by our Warsaw office, which opened earlier this year. On the back of the success
of this initial venture, we anticipate making further acquisitions in Europe, as
we seek to expand our asset management activities internationally.'

                                    - ENDS -

For further information:

Ben Habib                         Richard Sunderland/Rachel Drysdale
First Property Group plc          Tavistock Communications Limited
Tel: [phone]                Tel: [phone]
www.fprop.com                     [e-mail]


Notes to Editors:

First Property Group is an integrated, internet based, property services and
asset management group. Its various divisions are:

First Property Asset Management ('FPAM') - First Property Group's property fund
management subsidiary, commenced trading in October 2002. FPAM now has five
funds containing circa £22 million of property assets under management.

Commercial Property Database ('CPD') - In 2001, Fprop acquired CPD, which
provides access to its interactive database of UK properties exclusively to
commercial property agents via their own web sites, giving multiple searching of
size, location and property type, thus also providing agents with an income
generating facility. CPD provides database and web services to about 100
commercial property agents in the UK.

Online Sales of Properties - First Property Group plc operates a web based
business-to-business property transaction platform established to facilitate the
buying and selling of UK commercial property. By combining an email marketing
campaign to its database of some 35,000 property practitioners, with links to
detailed property particulars at www.fprop.com, it sells property entirely 
online without the assistance of any traditional services.

Property Transaction Underwriting - Given Fprop's access to property for sale,
its financing capability, its online sales capability and its in-house
expertise, the Company also operates a property transaction underwriting 
service. This service allows Fprop to target vendors who have property for sale 
and offer to act as a buyer of last resort. If the property is sold on the 
market, any upside above the guaranteed price is typically shared 50/50 between 
the vendor and the Company. The Company only targets property which it believes 
it could add value to within a twelve to twenty four month period, with a view 
to a resale thereafter at a profit.



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