Fthr re Disposal

R.E.A.Hldgs PLC
22 November 2001


R.E.A. Holdings plc ('REA' or the 'Company')

Disposal of the Remaining 50% interest in Deundi Tea Company Ltd ('DTC')

Further to the announcement of 26 June 2001 relating to the terms of the
disposal of 50% of DTC and the Company's announcement of its unaudited interim
results of 19 September 2001, REA has conditionally agreed to amend the terms
of the first agreement referred to in the announcement of 26 June 2001, (the
'First Agreement').

Since the announcement of the Company's interim results on 19 September 2001
where REA stated that the first instalment of the sale proceeds in relation to
the First Agreement would be delayed, it has become apparent that the
purchaser has been experiencing difficulty in obtaining the funds necessary to
meet its obligations under the First Agreement in a timely manner.
Accordingly, REA has taken active steps to effect a workable solution and to
protect the Company's interests.

The Company has therefore agreed that, conditional upon the purchaser paying £
600,000 in part satisfaction of the consideration due under the First
Agreement on or before 15 December 2001, the Company will waive the second
instalment of £250,000 otherwise due under the First Agreement. All other
terms of the First Agreement, including the balance of £250,000 payable on a
basis relating to the receipt of cash transfers from Bangladesh into the UK,
and the terms of the second agreement referred to in the announcement of 26
June 2001, remain unchanged.

Whilst there can be no certainty, the Board has a high degree of confidence
that the purchaser will make payment on or before 15 December 2001. In the
unlikely event payment is not forthcoming, the original terms of the First
Agreement will continue in full force and effect, and the Board will consider
at that stage the most appropriate course of action.

Enquiries:

Nigel Newby, R.E.A. Holdings           020 7419 0100

ENDS