Disposal

Terrace Hill Group PLC
05 March 2003

TERRACE HILL GROUP PLC ('the Group')

DISPOSAL

The Group announces that it has contracted to sell 223 flats in East and
North-East Scotland with completion due on 17 March 2003. The purchaser is
Blueroom Properties Limited, a member of the Places for People Group.

This is a substantial transaction in terms of the AIM Rules and the following
information is given.

The flats had been held by the Group for letting on short assured tenancies.
Profit from the flats of this activity, after property, management and financing
costs, was at a rate of £350,000 per annum before central overheads.

The book value of the property following the revaluation contained in the
Group's unaudited half year results to 31 October 2002 was £16.717 million. The
consideration, payable in cash, is £16,735,803 which will be used partly to
repay borrowings and partly for working capital.

The effect on the Group is to release profit and significant negative goodwill
to the Profit and Loss Account, to reduce gearing and to provide funds which
should  allow opportunities for progress.

Contacts:

Ross Macdonald, Joint Managing Director, Terrace Hill Group Plc, 0141 332 2014

Alasdair Robinson, Noble & Company Limited, 0131 225 9677


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