Board Changes

Highcroft Investments PLC
14 June 2002

                          Highcroft Investments PLC

           - Board Changes and Statement regarding Future Strategy -



Board Changes

At the Company's Annual General Meeting held on Wednesday 11 June 2002,
shareholders voted, on a poll, against the resolutions to re-elect John Hewitt
and Tony Phillips as non executive directors of the Company.  Accordingly, Mr
Hewitt and Mr Phillips have ceased to be directors of Highcroft with immediate
effect.



The Board is grateful for John and Tony's contribution to the Company over the
years and wishes them both well for the future.



Corporate Objectives

The broad objectives of the Company remain unaltered.  These are to enhance
shareholder value by virtue of a combination of increasing asset value,
increasing profits and increasing dividends.



Future Strategies

Following a period of extensive debate on the wide-ranging strategic options
available to the company, the Board of Highcroft have resolved:



•    To modify the balance of the Company's allocation of funds between property
and listed investments.  A greater focus will now be on the property portfolio.



•    To realise a proportion of listed investments over time as tax-efficiently
as possible.  The funds generated will be reinvested in the property portfolio
from which we expect to earn higher income yields than from listed investments.



•    To maintain a smaller, though still significant, proportion of funds in
listed investments in order to keep a broad risk profile.  It is not the
intention to realise the whole of the listed investment portfolio.



•    In expanding the property portfolio, not to be averse to assuming a degree
of development risk.  However, such development risk will not, for example,
include the purchase of bare land without planning permission.  Rather the Board
regards its forward funding of the Langford Locks development in 1999, as a good
example of the development risk it will be happy to assume.



  • Additionally, in expanding the property portfolio, not to be averse to a
    moderate level of gearing.  However, this does not represent a radical shift
    to a highly geared property company.  It is merely allowing ourselves the
    possibility that opportunities for the property portfolio may arise which
    cannot be met by internal funding but which can be met externally by loan
    finance.



Conclusion

The Board believes that this modest change in emphasis will allow the Company to
generate sufficient income growth to continue to fund a level of dividend growth
which has been achieved in recent years while at the same time achieving the
degree of secure asset backing which the Board believe that shareholders expect
and which they have had in the past.



13 June 2002




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