Share Premium Account Cancellation Proposal

THE TAVERNERS TRUST PLC
(the "Company")

PROPOSED CANCELLATION OF THE COMPANY'S SHARE PREMIUM ACCOUNT

The  Company announces today a proposal to cancel its Share Premium Account (the
"Proposal").   The  Proposal, which is subject to the approval of  Shareholders,
Warrantholders  and  the  sanction of the High Court will  further  enhance  the
Company's ability to purchase its own Shares.

At  this  time  the  Company  has insufficient revenue  reserves  (approximately
£136,000  at  the  last year end, 30 April 2004) to finance a significant  share
buyback  programme.  Consequently, it is proposed to cancel the Company's  Share
Premium  Account,  thereby creating a special reserve which may  be  treated  as
distributable profits and utilised for making purchases of the Company's Shares.
The Company's Share Premium Account is approximately £10.54 million.

The  Company  has  been  authorised until the 2005  Annual  General  Meeting  to
purchase in the market up to 2,388,806 (being 14.99 per cent.) of the Shares  in
issue.  The Board stated in the annual report and accounts for the year ended 30
April 2004 that the authority to purchase the Company's Shares would not be used
unless  to  do so would result in an increase in net asset value per  Share  and
would  be in the interests of Shareholders generally.  This will continue to  be
the  case.  The timing and price of any such purchases, and indeed the  decision
whether to use this authority at all, will be at the discretion of the Directors
in  the  light of prevailing market conditions from time to time.  The Directors
will also determine whether any purchase should be funded by using the Company's
cash resources and/or realising investments.

The Proposal is conditional upon the approval of Shareholders and Warrantholders
and  Extraordinary General Meetings for Shareholders and Warrantholders will  be
held  on  22 October 2004 to consider the necessary resolutions.  Implementation
of  the  Proposal is also subject to confirmation by the High Court and at  this
time it is envisaged that the Proposal will become effective on or around the 16
December 2004.

Full  details of the Proposal and notices of the Extraordinary General  Meetings
are set out in a circular  sent out today to Shareholders and Warrantholders.

27 September 2004

Enquiries:

Robert Hoskin
Aberdeen Asset Management PLC - Company Secretary
020 7463 6000