AGM Statement

Medsea Estates Group PLC
16 June 2006


For Immediate Release - 16 June 2006

                                      

                            Medsea Estates Group Plc

                                 AGM Statement


At today's annual general meeting, Mr Tony Gatehouse, Chairman, will make the
following statement:-


'I am delighted with the progress that Medsea Estates Group is making in the
current year. Last year was a period of major investment for the Group as we
expanded our presence into new markets including Italy, Cyprus, Turkey, Portugal
and Bulgaria as well as growing our activities in Spain.


'This year we will begin to reap the rewards of those investments as many are
already making significant contributions and Euromed is set to fulfil its
potential. As already reported, unaudited management accounts for the first
quarter showed a pre-tax profit of Euro 432,270 which was some Euro 300,000 up
on the comparable period and we continued to make excellent progress in April
and May.


'We believe that we are steadily regaining market share in the Spanish market
with the help of an increasing number of supporting agents in the UK while our
operations in the newer regions are making successful inroads into those
markets. In particular our move into the Italian market offering low-cost
beach-front properties in Calabria, Southern Italy, through our new brand,
Italian Connection Properties, is proving particularly successful. We anticipate
that our Italian activities will make an important contribution to the Group's
performance this year.


'Medsea has regained its momentum and I am pleased to state that the Board
expects to report a significant recovery in first half profits for the six
months to 30 June 2006. '



Media - For further information contact:


Tony Gatehouse, Chairman, Medsea 0034 96 570 40 02

Juan Carlos Rodriguez Martinez, Chief Executive, Medsea 0034 96 570 40 02


Beaumont Cornish Limited

Roland Cornish 0207 628 3396


Weber Shandwick Square Mile

Alex White/Terry Garrett/John Moriarty 0207 067 0700



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