Offer Update

Falkland Islands Holdings PLC
25 October 2004


                                Press Release

                         Falkland Islands Holdings plc

                                  Offer for

                  The Portsmouth Harbour Ferry Company PLC


For immediate release                                          25 October 2004

The Board of Falkland Islands Holdings PLC ('FIH') is pleased to announce an
increase in the terms of its offer for the whole of the issued share capital 
of The Portsmouth Harbour Ferry Company PLC ('PHFC') not already owned by FIH 
('the Offer').

The Board of PHFC has declared a dividend of 24p per PHFC share payable on 
29 October 2004 to PHFC shareholders on the register on 20 October 2004.

Under the terms of the Offer, FIH would have been entitled to the benefit of 
all dividends declared, made or paid after 11 October 2004.

FIH hereby improves the value of the Offer by permitting accepting PHFC
shareholders to retain the benefit of this dividend.


Enquiries

Falkland Islands Holdings plc
David Hudd, Chairman                Tel: [phone]

Dawnay, Day Corporate Finance Ltd
David Floyd, Director               Tel: [phone]

College Hill Associates Ltd         
Ben Brewerton                       Tel: [phone]






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