Business Update

Medsea Estates Group PLC
20 December 2004


For immediate release

20 December 2004

                  MEDSEA IN MULTI-MILLION POUNDS PROPERTY DEAL

Promilorci, S.L, a company in which Medsea Estates Group PLC holds a 13 per cent
interest, has bought development rights to a 4.5 million sq ft plot of land in
Murcia, Spain at a cost of €20 million (approximately £13.4 million). Promilorci
intends to develop up to 786 residential properties on the site.

Medsea will supervise everything related to the sales and marketing of the
properties on behalf Promilorci and Medsea's subsidiary, Euromed, acting as
principle agent, will commence marketing the development in the UK and Ireland
in the New Year through its links with some 150 independent property agents.

As stated in the Admission to AIM document, Euromed was established to broaden
the scope of the Group's activities so that it could obtain exclusive
arrangements with some developers for the sale of properties in prime
residential locations.

This is Euromed's first exclusive arrangement, enabling it to act in a promoter
type role rather than Medsea's traditional approach of entering into commission
arrangements with developers and promoters to pre-sell properties under
construction.

The project, known as the Nuevo Torre Guil development, is within a large
forested area that is just six miles from the city of Murcia, one of the most
important Spanish destinations for national and international tourism. The
Murcia region has experienced significant growth and ranks fifth for foreign
investment in Spain with Madrid and Barcelona taking the first two places as
capital investment centres.

The new homes will comprise two-storey, two to three bedroom semi-detached
houses which with prices starting from €180,000. The showhouse will be completed
in May 2005 and the first properties will be under construction by September of
that year.

Says Medsea Chairman Tony Gatehouse: 'This is an exciting move for Medsea.
Murcia is one of the key tourist destinations in Spain and last year it was
visited by over three quarters of a million people. Almost a third of the best
beaches along the Spanish Mediterranean coast are located here, the climate is
excellent and the region's infrastructure is impressive with major networks of
roads, good rail transport and easy access to airports. This all makes it a very
attractive place in which to buy property.'

Medsea had originally intended to hold a 20 per cent stake in Promilorci but the
project has attracted further investment interest from important business
associates in the Murcia region and the share capital has been increased thus
reducing Medsea's holding to 13 per cent. The Group's partners in Promilorci are
Axis Cost Blanca S.L., with 16 per cent, Sevensuns Inversions S.L. (16 per
cent), Mr Jose Montoya del Moral (5 per cent) and Mr Ricardo-Jose Montoya Del
Morata (5 per cent). Other shareholders own the balance of 45 per cent.

For further information contact:

Tony Gatehouse, Chairman
Medsea Estates Group PLC 0034 96 570 40 02

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

Roland Cornish
Beaumont Cornish Limited 020 7628 3396

Terry Garrett/ Alex White
Weber Shandwick Square Mile 0207 067 0700


                      This information is provided by RNS
            The company news service from the London Stock Exchange