Property Sale and Purchase

Derwent Valley Holdings PLC
15 December 2003



                          DERWENT VALLEY HOLDINGS PLC
                                        
                      Central London sale and acquisition

Derwent Valley Holdings Plc ("Derwent Valley" or "the Group"), the specialist
Central London property investment and development group, has completed the sale
of an office investment in the West End at a significant premium to its June
2003 valuation and has exchanged contracts for the purchase of an office complex
at Ladbroke Grove.

Disposal of Panton House, 25/27 Haymarket, SW1

The Group has disposed of this 28,626 ft2 (2,659 m2) freehold office building to
Canada Life Limited. The purchaser has paid £17.514 million for the building, a
28% increase over the June 2003 valuation. The building has been totally
reconfigured and refurbished by Derwent Valley to provide retail and restaurant
space on ground and basement with five upper floors of offices.

Derwent Valley recently let all the remaining space in Panton House. Tenants
include Woolwich Building Society, Pizza Express, Xstrata Services and Fortum
Energy. The lease profile shows 30% of the income potentially expiring by 2006,
49% expiring in 2012 and the balance by 2026.

After assuming normal purchaser's costs the disposal reflects an initial yield
of 4.54%, rising to 6.38% upon receipt of the full income.

Acquisition of Kensal House and Portobello Dock, Ladbroke Grove, W10


The Group has paid £10.65 million to acquire the freehold office campus known as
Kensal House and Portobello Dock, Ladbroke Grove from Virgin Records.

The waterfront complex, which comprises five office buildings totalling
approximately 49,338 ft2 (4,584 m2) with 105 surface car parking spaces, is
situated on two sites on either side of the Grand Union Canal. They are linked
by a footbridge and together total 1.8 acres. The vendors have taken a lease
back to September 2005 with a tenant's break option in September 2004 at a rent
of £900,000 per annum.

Commenting on these transactions, John Burns, Managing Director, said:

"The profitable sale of Panton House demonstrates the strong investor demand and
the prices that can be achieved for quality investments in the West End. Having
undertaken a complete refurbishment of the building and subsequently concluded
our lettings, the opportunities for us to add value had become limited.

"We continue to search for new properties where we see the potential for future
value creation, and our acquisition in Ladbroke Grove illustrates our strategy
of investing in up-and-coming locations. We already have substantial holdings
nearby in Paddington and we believe that this complex offers good opportunities
for enhancing value through refurbishment and planning gain."

                                                                15 December 2003

ENQUIRIES:

Derwent Valley                                   Tel: [phone]
John Burns, Managing Director

College Hill                                     Tel: [phone]
Gareth David



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