Holding(s) in Company

Cairn Energy PLC
19 June 2006





FOR IMMEDIATE RELEASE


19 June 2006



                           Cairn Energy PLC ('Cairn')


   Notification of Shareholding - Companies Act 1985 ss.198-202 (as amended)


On 16 June 2006, Cairn was notified by Merrill Lynch Investment Managers Limited
('MLIM') on behalf of itself and certain of its subsidiaries, that they had an
aggregate interest in 23,258,367 ordinary shares of 10 pence each in Cairn,
representing approximately 14. 53% of Cairn's current issued ordinary share
capital.


The registered holders to which this notification relates and the number of
shares held by those registered holders as at 9 June 2006 (if known) were as
follows:-

                                               Number of     Nature of Interest
Registered Holder                              Shares

Nutraco Nominees Limited (Des & Undes)          12,512,793   Non-beneficial
Merrill Lynch Pension Nominees Limited             975,492   Beneficial
A/C Noncert
Merrill Lynch Pensions Nominee                      12,187   Beneficial
Stamford Nominees Limited (Des & Undes)             13,900   Non-beneficial
Britel Nominees Limited                            666,317   Non-beneficial
Treasury of the Government of the Isle of Man      181,380   Non-beneficial
Nominess A/C 5
Treasury of the Government of the Isle of Man      320,493   Non-beneficial
Nominees A/C 10
Other Names                                      8,575,805   Non-beneficial
                                                23,258,367       14.53%



In addition to the interests noted above, and also on 16 June 2006, Cairn was
notified by Merrill Lynch & Co., Inc that it and Merrill Lynch Group, Inc (both
of which are holding companies of MLIM) held the following interests in Cairn
shares as at 9 June 2006.

Company                                         Number of Shares

Merrill Lynch & Co., Inc                                               783,382
Merrill Lynch Group, Inc                                                19,646




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