Disposal

Latham(James) PLC
10 December 2004


                                   JAMES LATHAM PLC


Clapton Site Sale

The Directors are pleased to announce that negotiations with Countryside
Properties plc to purchase the James Latham plc vacant site at Clapton have been
concluded and are subject to a confidentiality clause.  James Latham plc has
received an initial payment of £7 million and further secured payments will be
made ending in December 2007.

The minimum value agreed reflects the current planning permission and will
produce £15,666,000 profit on the disposal of the property.

Of the initial payment of £7 million, about £2.7million will be paid in
corporation tax on the capital gain, £1.5million will constitute a special
dividend to ordinary shareholders and a £2 million contribution will be paid to
the underfunded pension scheme.

The further secured payments are likely to be used to develop the business of
the Company, to ensure that the Pension Scheme is adequately funded and for the
benefit of stakeholders.


Special Dividend

The Board has decided that part of the proceeds from the sale of Clapton should
be paid to shareholders and has declared a special dividend of 30.0p per
Ordinary Share.

This will be paid with the interim dividend of 6p declared on 7th December so
the total dividend of 36p is payable on 26 January 2005 to Ordinary Shareholders
on the Company's Register at the close of business on 7 January 2005. The
ex-dividend date is 5 January 2005.

Please note that the references to the value of dividends per Ordinary Share are
to the existing Ordinary Shares of £1, prior to any division pursuant to the
resolution to be put to an EGM on 12th January 2005.  If the resolution is
passed the interim dividend will amount to 1.5p per Ordinary Share of 25p and
the special dividend will amount to 7.5p per Ordinary Share of 25p.


Roger Latham
Executive Chairman
10 December 2004



Contacts:

Peter Latham, Executive Director       01442 849100
David Dunmow, Finance Director         01442 849100

Company Secretary: Pippa Latham        Registrars
Registered Office                      Computershare Investor Services plc
Unit 3 Swallow Park Finway Road        PO Box 1075 The Pavilions
Hemel Hempstead Herts HP2 7QU          Bridgwater Road
Registered number 65619                Bristol BS99 3ZZ



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