Share sale in holding

Cater Barnard PLC
25 February 2003


FOR IMMEDIATE RELEASE

                                                                25 February 2003



              CATER BARNARD PLC ('Cater Barnard' or 'the Company')

                   Sale of Shares in Cater Barnard (USA) plc

The Board of Cater Barnard today announces the sale and purchase of 2,580,516
ordinary shares of 5p each (the 'Shares'), in Cater Barnard (USA) plc ('Cater
Barnard (USA') to First Financial Securities Limited ('First Financial') for a
purchase price of £99,995 payable in cash. The Shares represent 14.99% of the
Company's total holding and are valued in Cater Barnard's books at £67,434 and
have a market value of £99,995, based on the closing mid-market price on OFEX at
21 February 2003. The remaining holding will have a book value of £382,566 and
Cater Barnard (USA) will now be 75.72% owned by the Company.

First Financial is controlled by Mr Adrian Stecyk, who is both a Director of
Cater Barnard and Cater Barnard (USA), and who has an interest in the entire
issued share capital of First Financial.

In deciding on the sale and purchase of the Shares, the Board took into account
the current trading of Cater Barnard (USA) and its future prospects. For the
year ended 30 September 2002, Cater Barnard (USA) made losses of £1,597,373 on
turnover of £383,829, and at 30 September 2002 had net asset value of £577,405.

The transaction provides Mr Stecyk, the Chief Executive of Cater Barnard (USA),
with an opportunity to acquire a meaningful shareholding in that company. The
consideration for the Shares will be used by the Company for general working
capital purposes.

Mr Stephen Dean, Executive Chairman and the independent Director, having
consulted with the Company's nominated adviser, considers that the terms of the
transaction are fair and reasonable insofar as Cater Barnard's shareholders are
concerned.


Contact:       Stephen Dean, Cater Barnard                 - 0870 0660830
                                                            
               Roland Cornish, Beaumont Cornish Limited    - 020 7628 3396

               Dennis Bailey, Hichens, Harrison & Co. plc  - 020 7588 5171


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