Holding(s) in Company

Caledonia Investments PLC
01 June 2004

Reduction of an interest in shares

Caledonia Investments plc ('Caledonia' or the 'Company') announces that it has
today received notification pursuant to section 198 of the Companies Act 1985
(the 'Act') from The Cayzer Trust Company Limited ('CTC') that the interest of
CTC in Caledonia which arises pursuant to voting and pre-emption arrangements
entered into on 15 March 2004 by CTC with a minority group of CTC's shareholders
(the 'Minority Group') has decreased as a result of the disposal of 111,198
shares in Caledonia by the Minority Group. These arrangements form part of the
settlement terms agreed between CTC and the Minority Group referred to in the
announcement released by Caledonia on 15 March 2004 regarding its proposals for
a return of funds to ordinary shareholders.

CTC is deemed by virtue of section 208(4)(b) of the Act to be interested in all
of the Caledonia shares to which the above voting and pre-emption arrangements
relate. Following the disposals, CTC is interested in a total of 27,550,564
shares in Caledonia (representing 37.94% of Caledonia's issued ordinary share
capital), of which 133,438 shares (representing 0.18% of Caledonia's issued
ordinary share capital) are shares remaining subject to these arrangements. Of
the shares sold by the Minority Group, 25,000 shares were transferred to persons
who are not members of the Cayzer family concert party ('Concert Party'), as a
consequence of which the Concert Party's total holding in Caledonia has reduced
to 35,281,734 shares, representing 48.59% of the issued ordinary share capital.

The registered holders of the shares sold, so far as is known to CTC, were as
follows:

Name of registered holder                                      No. of ordinary shares

Lord Rotherwick                                                2,000

CB Nominees Limited                                            10,000

Lord & Lady Rotherwick                                         15,833

Mr Michael Wood, Mr Harry Clegg, Mr Edward Brown and Mr Bruce  83,333
Bossom

Mr Michael Wood, Mr Harry Clegg and Mr Edward Brown            32


Enquiries:

G P Denison, Company Secretary                               Tel: [phone]

1 June 2004




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