Rule 2.10 update

Falkland Islands Holdings PLC
13 October 2004




                          Falkland Islands Holdings Plc
                                        
                        Increase in Issued Share Capital
                                        
For immediate release 
                                                                13 October 2004

It was announced on 6 October 2004 that Falkland Islands Holdings plc ('FIH')
had placed 1,492,537 new shares for cash, subject to admission of the new FIH
share to trading on AIM.

Dealings in these shares commenced on AIM yesterday and consequently, FIH now
has 8,037,342 shares in issue.

The information above is given in compliance with Rule 2.10 of the City Code on
Takeovers and Mergers.

Certain of subscribers for the new FIH Shares in the Placing are required by
Rule 8 of the City Code on Takeovers and Mergers to announce the purchase of new
FIH shares at the placing price of 335p.

Enquiries
Dawnay, Day Corporate Finance Limited
David Floyd - Director Tel: [phone]



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