Filing of Notice to Appoint Administrators

12 July 2010

                            Trafalgar New Homes PLC                            

                                (The "Company")                                

                  Filing of Notice to Appoint Administrators                   

The Company announces that it has today filed a notice to appoint
Administrators at Court.

The Company further announces a trading statement relating to the quarter ended
30 June 2010. During the quarter the Company's only trade was to continue
'building out' the development contract it had with Wandle Housing Association
("Wandle") following the sale of the development land and part built houses at
Mitcham, Surrey.

The financial position of the Company has worsened due to cashflow restrictions
and increased costs due to the "Code 4" build specification. During June 2010,
the Company held meetings with both Wandle Housing Association and the
Company's bankers, regarding a way forward to finish the project.
Unfortunately, the Company's proposal was rejected by Wandle at the end of June
and subsequently Wandle served notice on the Company to take possession of the
development site with a view to finishing it themselves and thus terminating
the contract with the Company. Also, the Company's bankers refused to provide
additional funding to the Company. In addition, the previous contractors, Tudor
Homes, won an adjudication case against the Company and was awarded £58,000,
despite the Company defeating the adjudication four times previously.

Accordingly, there is no surplus cash available. With these events occurring,
the Company had no choice but to request the suspension of the Company's shares
on 7 July 2010 and seek insolvency advice, leading to today's filing of a
notice to appoint Administrators at Court.

Further announcements will be made in due course, as and when appropriate.


The Directors of the Company accept responsibility for this announcement.

For further information please contact:

Trafalgar New Homes plc                                    07092 009 165
Robert Mckendrick

SVS Securities plc (PLUS Corporate Adviser)                020 7638 5600
Peter Ward / Alexander Brearley

Trafalgar New Homes PLC