Notifiable Interest

Terrace Hill Group PLC
11 May 2004


Terrace Hill Group plc ('Terrace Hill' or 'the Company')

For embargoed release at 7 a.m.                                   11 May 2004


Notifiable Interest


The Board of the Company announces that it received notification, on 7 May 2004,
that, pursuant to the recent share placing, Caledonia Investments plc have
acquired on 6 May 2004 a beneficial holding in the Company of 14,000,000
ordinary shares representing 7.49% of the issued share capital of the Company.
This represents the entire shareholding of Caledonia Investments plc in the
Company. All of the shares will be registered in the name of Caledonia
Investments plc.

The Company was also notified that, by virtue of the provisions of section 203
of the Companies Act 1985, The Cayzer Trust Company Limited, a substantial
shareholder in Caledonia Investments plc, is also deemed to be interested in the
above mentioned shares.

The ordinary shares of 2p each above were subscribed for during the recently
undertaken placing and at the placing price of 29p per share.


For further information please contact:

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

Alasdair Robinson, Noble & Company Limited               0131 225 9677



END


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