Offer to Repurchase Bonds

Hammerson PLC
25 May 2006

                  FOR RELEASE THURSDAY, 25 MAY - POST MEETING

                        Offer to Repurchase for Cash by

                                 Hammerson plc

                       For any or all of its outstanding
                  £200,000,000 10.75 per cent. Bonds due 2013

                        and proposal by Hammerson plc to
                    the holders of such Bonds (Bondholders)

Hammerson plc announces that in connection with its invitation to Bondholders to
approve a proposal to amend the terms and conditions of the Bonds by
Extraordinary Resolution to provide for the company to have the option to redeem
the Bonds early, at the Meeting of the Bondholders convened by the Notice
published in the Financial Times on 3 May 2006 and held on Thursday, 25 May
2006, the Extraordinary Resolution was not passed.  Accordingly, the proposal
will not be implemented.

However, Hammerson plc intends to proceed with its repurchase of all Bonds
validly tendered by eligible Bondholders for repurchase for cash pursuant to its
invitation to such Bondholders set out in the Tender Offer Memorandum dated 3
May 2006 and announces its acceptance for repurchase of such Bonds of an
aggregate principal amount of £93.82 million.  The repurchase will be financed
out of existing committed facilities.  Following such repurchase on the
Settlement Date, which is expected to be 1 June 2006, an aggregate principal
amount of £106.18 million of the Bonds will remain outstanding. After the
redemption Hammerson will have cash and undrawn committed facilities of around
£520 million.

The price payable for the Bonds accepted for repurchase and the Early Tender
Premium (as defined in the Tender Offer Memorandum) will be determined at or
around 11.00 a.m., London time, on 26 May 2006 and an announcement of the
repurchase price and the Early Tender Premium will be made as soon as
practicable after such determination.

Simon Melliss, Group Finance Director, commented, 'We are pleased with the
response to the tender offer we have recently made. As a result, Hammerson will
enjoy lower financing costs and improved cashflow going forward, whilst
maintaining a healthy level of corporate liquidity.'


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