Offer Update

Pathfinder Properties PLC
27 June 2001


                                 ANNOUNCEMENT


                   PATHFINDER PROPERTIES PLC ('PROPERTIES')


                   PATHFINDER RECOVERY 1 PLC ('RECOVERY 1')


Pathfinder Properties PLC (following discussions with Beaumont Cornish
Limited, financial advisers to Recovery 1, and with the Takeover Panel) is
pleased to announce that, following progress in the planning application for
the proposed development at River Quay, Castlefield, Manchester, the Board of
Properties has decided, subsequent to its Revised Offer being declared
unconditional on 6 June 2001, to make a further payment to Recovery 1
Shareholders of 3.5 pence per share by way of an ex gratia payment to those
Shareholders who have elected for the Limited Cash Alternative.

Cheques will be despatched to Shareholders who have accepted the Limited Cash
Alternative within 14 days of the date of this announcement.

Shareholders of Recovery 1 who have accepted the Share Offer will participate
in any effects of the progress of the planning application through holding
shares in Properties.

Enquiries:

Malcolm Bacchus, Pathfinder Properties PLC          020-7736-9669

Robert Lo, Nabarro Wells & Co. Limited              020-7710-7400

Note:

River Quay, Castlefield, Manchester is 50% owned but 65% controlled by
Properties following the takeover of Recovery 1.

Words and phrases used in this announcement have the meanings given to them in
Properties' Revised Offer document posted on 18 May 2001.