Final Results

Medsea Estates Group PLC
21 March 2005


For immediate release: 21 March 2005

                            MEDSEA ESTATES GROUP PLC
                      PRELIMINARY RESULTS FOR THE YEAR TO
                               31ST DECEMBER 2004

                                   HIGHLIGHTS
• Successful AIM float

• Turnover for the year increased by 80% to £14.08m (2003: £7.84m)

• Pre-tax profits increased by 98% to £2.24m (2003: £1.13m)

• Earnings per share of 2.01p

• Euromed Investments established to broaden activities and establish
  exclusive deals with developers

• Euromed's first development, Nuevo Torre Guil, launched this month

Tony Gatehouse, Chairman, commented:

'Last year confirmed that the Medsea Group is a major force in the Spanish
property market. We have set ourselves another ambitious programme for 2005 but,
as always, we believe it to be achievable and the Board looks forward to
developing further in the coming years.'

For further information contact:

Medsea Estates Group PLC

Tony Gatehouse, Chairman                 Today:          0207 067 0700
Juan Carlos Rodriguez Martinez, Chief
Executive                                Thereafter:     0034 96 570 40 02

Beaumont Cornish Limited

Roland Cornish                                           0207 628 3396

Weber Shandwick Square Mile

Terry Garrett/ Alex White                                0207 067 0700


CHAIRMAN'S REPORT FOR THE YEAR ENDING 31st DECEMBER 2004

The year 2004 confirmed that Medsea Estates Group PLC is a major force in the
Spanish property market. We set ourselves a very ambitious programme and, as has
always been the style of the Directors throughout the growth of Medsea, this
programme has been achieved.

My congratulations to Juan Carlos Rodriguez Martinez, our Chief Executive
Officer, whose safe hands and unlimited energy steered Medsea and its staff to
the best financial results to date.

Looking forward to 2005, we intend to use our experience and expertise to
continue our winning formula, always keeping it simple and doing the basics
extremely well.

RESULTS

For the year ended 31 December 2004, we achieved a profit on ordinary activities
before taxation of £2,242,000 (2003: £1,129,000) on turnover of £14,082,000
(2003: £7,843,000). Earnings per share amounted to 2.01p.

These results were in line with our expectations, with the exception that
Euromed, which only finalised its first acquisition 13 December 2004, did not
make a contribution to the year.

Overall, whilst the number of units was down on initial expectations because a
number of new competitor countries entered the market after September, the
average contribution was ahead, with the focus on increasing income and business
efficiency. This is a pattern which we see continuing in the current year.

LOCATIONS

Our Costa Blanca North office is in the process of extending our coverage all
the way up to Valencia and the Orange Blossom Coast. In recent times, the
Valencia area has been well publicised by UK television programmes like Homes in
the Sun, and this is sure to create further demand from the public.

New locations under serious consideration are Portugal and the Costa de la Luz.
Portugal has been marketed successfully over many years and as the property laws
are very similar to Spain it is safe for overseas buyers. The Costa de la Luz is
just over the bridge which closely links the Portuguese Algarve to Spain and has
also received good publicity from several UK television programmes. We believe,
together with existing locations, this will give a level of coverage in Spain
that is unequalled by our main competitors. That will give Medsea the edge in
attracting top UK and Irish agents.
We have examined the potential to expand into other countries and while we have
not ruled out the possibility of broader diversification in the medium term, we
feel we should exercise caution as, in a number of other countries, there seems
to be some difficulty in establishing clear title deeds to land.


AGENTS

Towards the end of 2004, we signed up a number of new agents to Medsea. We are
starting to see clients coming through from these and will continue to monitor
the overall performance of our agency base, since we are looking for quality not
quantity. We intend to introduce a scale of commission, depending on
performance, that will free up extra funds to pay performance bonuses to our top
producers.

EUROMED INVESTMENTS

Euromed Investments has been established to broaden the scope of our activities.
Until now, the Group has entered into commission arrangements with developers
and promoters to pre-sell properties under construction. We believe that we have
now achieved a sufficiently strong reputation and are of a size where we may be
able to obtain exclusivity from some developers for the sale of properties in
prime residential development locations, thereby acting in a promoter-type role
ourselves. The developer gains by having all sales dealt with through a single,
reputable agent. Euromed may in turn use other Group companies to sell these
properties, and it is likely that sales will also arise through other local
agents.

This month sees the launch of Euromed's first product, the Frondosa Valley
development in Nuevo Torre Guil, Murcia. Promilorci, S.L. a company in which
Medsea Estates Group holds a 13 per cent interest, has bought development rights
to 90 acres of land in Murcia, at a cost of €20 million (approximately £13.4
million). Promilorci intends to develop up to 786 residential properties on the
site.

Known as the Nuevo Torre Guil development it is within a large forested area
just six miles from the city of Murcia, one of the most important Spanish
destinations for national and international tourism. Medsea will supervise
everything related to the sales and marketing of the properties and Euromed,
acting as principal agent, will begin marketing the development in the UK and
Ireland through its links with some 150 independent property agents.

From the feedback we are getting, it is likely to be a 'cracking success'.

We have located a prestigious location and offices for Euromed that should be up
and running from the end of March.

We anticipate investment funds being made available to extend our range of
exclusive marketing contracts from the present three. One idea to satisfy the
SIPPS and SAPS market is to encourage the building of aparthotels in the right
locations, that will make the possibility of letting a reality.

PERSONNEL

We are actively strengthening personnel across the board. This will free up the
sales resources and ensure we are ready for the expected increase in clients,
without losing any efficiency.

Another priority is the need for a top professional marketing and publicity
person, who will get our particular messages across to both existing agents and
potential new agents, also to clients coming direct to our Property Shops, our
Finance Department and Euromed's new exclusive products. We are convinced the
right person will accelerate our expansion programme.

ISO 2001

Last year saw another landmark in Medsea's development. The Group undertook
preparation for ISO Certification. Its acquisition will re-inforce Medsea's
meticulous attention to processes and details.

POTENTIAL ACQUISITION

The Medsea Group is also actively looking to acquire a letting company in 2005,
which we feel will further enhance the business. This will have a dual benefit
as many potential buyers are choosing to bypass agents when looking to buy in
Spain and are also keen to know the letting potential before purchase. Also,
many use rental companies to find a property to stay in whilst looking around
for a property to purchase.


PROSPECTS

As set out above, we have set ourselves another ambitious programme for 2005,
but as always we believe it to be achievable and the Board looks forward to
developing further in the coming years.


Tony Gatehouse
21 March 2005


GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2004

                                                         Unaudited
                                                             Total       Total
                                               Notes          2004        2003
                                                             £'000       £'000

Turnover                                                    14,082       7,843

Cost of sales                                              (10,020)     (5,666)

Gross profit                                                 4,062       2,177

Administrative expenses                                     (1,595)     (1,030)

Operating Profit                                     3       2,467       1,147

Exceptional item                                     4        (219)          -

Interest receivable and similar income                           8           1
Interest payable and similar charges                           (14)        (19)

Profit on ordinary activities before taxation                2,242       1,129

Tax on profit on ordinary activities                 5        (822)       (397)

Profit on ordinary activities after taxation                 1,420         732

Minority interests                                              (2)          -

Retained profit for the year                                 1,418         732

Earnings per share
Basic                                                         2.01p       1.04p

Continuing operations

During 2004 Medsea Estates Almeria SL was acquired. None of the group's
activities was discontinued during the above two financial years.


GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE PERIOD ENDED 31 DECEMBER 2004

                                                           Unaudited
                                                                 2004     2003
                                                                £'000    £'000
Statement of total recognised gains and losses

Profit for the financial year                                   1,418      732

Foreign exchange gain/(loss)                                       64       12

Unrealised surplus on revaluation of investment properties         29      126

Total recognised gains relating to the year                     1,511      870

GROUP BALANCE SHEET
AS AT 31 DECEMBER 2004

                                       Unaudited
                                                      2004                2003
                                         £'000     £'000       £'000     £'000

Fixed assets
Intangible assets                                      4                     3
Tangible assets                                    1,174                 1,017
Investments                                           92                     -
                                                   1,270                 1,020
Current assets
Stock                                      129                     -
Debtors                                  7,500                 3,017
Cash at bank and in hand                 1,229                 1,013
                                         8,858                 4,030
Creditors: amounts falling due within
one year                                (4,772)               (1,800)

Net current assets                                 4,086                 2,230

Total assets less current liabilities              5,356                 3,250

Creditors: amounts falling due after
more than one year                                  (253)                 (298)

Provisions for liabilities and charges            (1,042)                 (410)

                                                   4,061                 2,542


Capital and reserves
Share capital                                      7,063                     3
Share premium                                         22                     -
Other reserve                                        173                   120
Revaluation reserve                                   98                   126
Merger reserve                                    (7,058)                    -
Profit and loss account                            3,761                 2,293
Minority interests                                     2                     -
Shareholders' funds equity                         4,061                 2,542



GROUP CASHFLOW STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2004

                                                             Unaudited
                                                                  2004    2003
                                                                 £'000   £'000
Reconciliation of operating profit to net cash inflow from
operating activities

Operating profit                                                 2,467   1,147
Exceptional items                                                 (219)      -
Depreciation                                                        88      42
Foreign exchange                                                    75       -
Amortisation of intangible fixed assets                            (64)      -
(Profit)/loss on sale of fixed assets                              (75)    (34)
(Increase)/decrease in debtors                                  (3,102)   (707)
Increase in stock                                                 (129)      -
Increase in creditors                                            1,295     721
Net cash inflow from operating activities                          336   1,169

CASH FLOW STATEMENT

Net cash inflow from operating activities                          336   1,169

Returns on investments and servicing of finance                     (6)    (18)

Tax paid                                                          (440)   (242)

Capital expenditure and financial investment                       (81)     34

Acquisitions and disposals                                         277       -

Management of liquid resources                                     (92)      -

Net cash flow before financing                                      (6)    943

Financing                                                          222    (133)

Increase in cash                                                   216     810

Reconciliation of net cash flow to movements in net debt

Increase in cash                                                   216     810

Cash inflow from increase in debt                                 (138)     65

                                                                    78     875

Net debt at 1 January 2004                                         589    (286)

Net debt at 31 December 2004                                       667     589


NOTES TO THE FINANCIAL STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2004

1. Basis of preparation

The preliminary statement is not the company's statutory accounts. The auditors
have not yet reported on the accounts for the year ended 31 December 2004 and
those accounts have yet not been delivered to the Registrar of Companies.

2. Basis of consolidation

The group accounts consolidate the accounts of Medsea Estates Group PLC and all
its subsidiary undertakings drawn up to 31 December each year. Medsea Estates
Group PLC acquired shares in Medsea UK Limited and all its subsidiaries on 16
July 2004. The accounts have been prepared using merger accounting so that all
the combining entities results are shown from 1 January 2004 and included in the
comparatives.

Medsea Estates Almeria SL was held outside of the legal group until 3 March 2004
but was under common management and control up to that date. The accounts for
the year ended 31 December 2003 set out in the Accountants' Report for the AIM
admission, aggregate the profits, losses, assets and liabilities of Medsea
Estates Almeria SL with those of the legal Group headed by Medsea Group SL.

3. Operating Profit

                                                          Unaudited
The operating profit is arrived at after charging:               2004     2003
                                                                £'000    £'000

Depreciation of owned assets                                       86       46
Depreciation of leased assets                                       2        7
Profit on disposal of fixed assets                                (75)     (34)
Hire of equipment - operating leases - motor vehicles             509      551
Hire of equipment - operating leases - land and buildings          32       19
Auditors' remuneration                                             18       10


4. Exceptional items
These costs are the professional fees and other costs arising from the Group's
admission to the Alternative Investment Market.

5. Taxation

                                                Unaudited
                                                              2004       2003
Analysis of charge in the year                               £'000      £'000

Current tax:
Spanish corporation tax on profits of the year                 413        179
UK corporation tax on profits of the year                       67          -
Deferred tax                                                   342        218
                                                            --------   --------
Tax on profit on ordinary activities                           822        397
                                                            --------   --------
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