Peabody Trust

Repurchase of Secured Stock

Peabody Trust
23 November 2007


                         THE GOVERNORS OF THE PEABODY TRUST 
          (formerly known as The (Governors of the Peabody Donation Fund)
                                    (the Issuer)
(Peabody Trust (formerly known as The Peabody Donation Fund) being a registered 
charity with registered number 206061 and registered as a social landlord under 
 the Housing Act 1996 with the Housing Corporation with registered number L0014)

                                     NOTICE

                         to the holders of those of the
                                   £78,484,700 
               10.25 per cent Guaranteed Secured Stock due 2023
                              (ISIN GB0006764566) 
          unconditionally and irrevocably guaranteed as to scheduled
                   payments of principal and interest pursuant 
               to a financial guarantee insurance policy issued by
                          AMBAC ASSURANCE UK LIMITED
           (incorporated in England and Wales with limited liability)
               of the Issuer presently outstanding (the Stock)

Further to the Notice given by the Issuer on 20 November, 2007, in which the
Issuer offered and agreed to purchase any Stock offered to it before 3pm on 4
December, 2007 at a margin over the gross redemption yield on the UK 5% Treasury
Stock 2025 of 0.35 per cent per annum (together with interest accrued up to and
including the date of settlement), and following subsequent discussions between
Royal Bank of Canada Europe Limited acting as agent for the Issuer and certain
holders of the Stock (Stockholders), the Issuer hereby confirms and agrees
further that, if any Stockholder wishes to sell its Stock by private treaty
prior to the expiry of the tender offer period but otherwise on the same terms
as set out above and specifically at the pre-stated margin of 0.35 per cent per
annum, then the Issuer will purchase such Stock on such terms for a trade date
and settlement date to be agreed between such Stockholder individually and Royal
Bank of Canada Europe Limited. Any Stock so purchased by the Issuer will be
cancelled and will not be available for re-issue.

Any Stockholder who wishes to sell its Stock by private treaty on the above
terms, or otherwise wishes to offer its Stock for purchase on the terms of the
tender offer set out in the Notice given by the Issuer on 20 November 2007,
should contact Royal Bank of Canada Europe Limited on 020 7029 7034 as soon as
possible and in any event by no later than 3pm on 4 December, 2007.

A copy of this Notice is being sent today by first-class post to all registered 
Stockholders. 

This Notice is given by
The Governors of The Peabody Trust
45 Westminster Bridge Road
London SE1 7JB
Dated 22 November, 2007.



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