Additional Listing

R.E.A.Hldgs PLC
05 October 2004


R.E.A. HOLDINGS PLC

The directors of R.E.A. Holdings plc ('REA') announce that REA has agreed,
conditionally, to place 772,965 new 9 per cent cumulative preference shares of
£1 each (the 'placing shares') at a placing price of £1 per share so as to raise
some £750,000 (net of estimated expenses). The placing will be made under
authorities granted to the directors of REA by resolution of REA shareholders
passed at the extraordinary general meeting of REA held on 29 July 2004.

The placing is being effected through Canaccord Capital (Europe) Limited
('Canaccord') which has arranged institutional subscribers for the placing
shares at the placing price. The placing is conditional upon admission of the
placing shares ('admission') to the Official List of the UK Listing Authority
and to trading on the London Stock Exchange's market for listed securities (for
which applications have been made).

It is intended that the net proceeds of the placing will be lent to R.E.A.
Services Limited, a wholly owned subsidiary of REA, and that R.E.A. Services
Limited will apply such proceeds towards the costs of financing a proposed
market purchase of up to £250,000 nominal of 4 per cent convertible unsecured
loan stock of REA. Should such purchase not be effected the net proceeds will be
retained by REA as an addition to the working capital resources of the REA
group.

It is expected that admission will become effective and the placing agreement
will become unconditional on 7 October 2004 and that dealings in the placing
shares will commence on 8 October 2004. The placing shares will rank pari passu
and form a single issue with the 9 per cent cumulative preference shares of REA
that are already in issue.




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