Trading Update

Terrace Hill Group PLC
21 June 2004



For embargoed release at 7am                            21 June 2004



TERRACE HILL GROUP PLC ('Terrace Hill')


TRADING UPDATE


Terrace Hill announces a number of recent transactions as it continues its
expansion.


Terrace Hill has sold an office and retail building in Bristol city centre,
developed by Terrace Hill in Joint Venture with Northridge Capital, to Royal
London Asset Management for £11.7 million.  The 46,500 sq ft building, known as
Colston 33, is located on Colston Avenue, and is principally let to Secretary of
State (Department of Health), solicitors Bevan Ashford and Right4Staff
recruitment consultants.


At Queen Elizabeth Park, Guildford, Terrace Hill has this month seen the sales
of four units of the first phase (13 units) of Terrace Hill's current
development of office suites aimed at the owner occupier market, with further
sales imminent. This is on top of selling, for an aggregate of £7.5 million, the
Health and Fitness Centre, Foodstore and Nursery School developed for occupation
by Esporta, Budgens and Academy respectively.


Terrace Hill has purchased an industrial property in Edmonton, North London from
Rayner & Company Limited, for £5 million, for future redevelopment.  The 4.2
acre site in Bull Lane, contains 138,000 sq ft of existing industrial space, and
is being leased back to Rayner & Company Limited for a short period while
Terrace Hill considers planning alternatives.


Terrace Hill has purchased, from the receivers of Bond Homes, a residential
development site fronting on to Glasgow Green close to the City Centre.  The
cash price was £2.6 million.  It is intended to develop the site out as 64 units
mainly 2 bedroom flats with a few townhouses.


Ross Macdonald, Joint Managing Director, commented:  'In our residential
division, we continue our focus on affordable properties in Scotland and the
North of England.  I believe this sector to be best sheltered from the current
round of interest rate rises.  We are pleased to have profitable realisations at
Bristol and Guildford.   The Edmonton purchase adds to our substantial programme
of future development activity, now in excess of £400 million'.




For further information please contact:

Robert Adair, Terrace Hill Group PLC, Chairman                    01845 537 037

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

Alasdair Robinson, Noble & Company Limited                        0131 225 9677



Notes to editors:


Terrace Hill Group plc is an AIM traded property company. It has two divisions
(i) commercial development where the current development programme shows over
£200 million in hand and a further £200 million projected and (ii) residential
investment where it has 578 units, almost entirely in Scotland and the North of
England. Terrace Hill recently reported a 15% increase in the value of its
underlying investment property assets since last October.



END




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