Acquisition

Propan Homes PLC
19 March 2003

                                Propan Homes plc

                          ('Propan' or the 'Company')


  Acquisition of Pinemount Trading Limited and Latchfield Investments Limited

Propan Homes plc, the AIM listed property development and investment company, is
pleased to announce that it has acquired the entire issued share capital of
Pinemount Trading Limited ('Pinemount') and Latchfield Investments Limited
('Latchfield'). Pinemount and Latchfield are property companies based in the
South East, which have residential property and land assets.

The acquisitions increase the Company's portfolio of property assets and
development land and enhance Propan's ability to capitalise on future
opportunities through the Company's enhanced size.

Propan Homes CEO Chris Johnson said: 'We are continuing in our strategy to
become a broadly based property company. Pinemount and Latchfield complement our
operations and offering, further strengthening our presence in the South East.
There are some excellent synergies and by rationalising centralised expenditure
we expect to see significant cost savings.'

The acquisitions will be satisfied by the issue to the vendors of 691,666 new
ordinary shares of 10p each in the Company (the 'Consideration Shares') credited
as fully paid. Application has today been made for admission of the
Consideration Shares to trading on the Alternative Investment Market of the
London Stock Exchange plc and dealings are expected to commence on Monday, 24
March 2003. The Consideration Shares will rank pari passu with the existing
ordinary shares of the Company.

At the same time, the Board of Propan has resolved to change its year-end date
from 31 March to 30 September. The Company will therefore publish interim
results for the six months to 31 March by the end of June and full year accounts
for the 18 months to 30 September 2003 will be prepared in line with statutory
requirements.

Enquiries:

Chris Johnson              Propan Homes plc                       01732 743 393
Hugo de Salis              St Bride's Media & Financial           020 7242 4477
Jeremy Porter              Seymour Pierce Limited                 020 7648 8700



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