Property Acquisition

Terrace Hill Group PLC
16 May 2003


Terrace Hill Group plc (the 'Group')


ACQUISITION


On 15 May 2003 the Group acquired a block of 43 freehold flats located near the
Quayside, Newcastle Upon Tyne.  The consideration paid in cash was £4,610,000.
This is a substantial transaction in terms of the AIM Rules.


Although the block at present is not fully let, the properties operate on a
break even basis taking into account financing costs. The directors plan to
maximise profits by embarking on an aggressive marketing campaign and increase
lettings and eliminate voids.


The effect of the acquisition on the Group is to improve the size and quality of
the Group's residential property portfolio and negative goodwill will be created
in the balance sheet.


Following computation this will be further detailed in the Chairman's Statement
with the results for the half year to 30 April 2003.


Contacts:


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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