Issue of Equity

Pathfinder Properties PLC
2 July 2001

From:        Nabarro Wells & Co. Limited

To:          Company Announcements Office

Date:        2 July 2001

Subject:     ANNOUNCEMENT

Release:     IMMEDIATE

ANNOUNCEMENT FOLLOWS:

PATHFINDER PROPERTIES PLC ('PROPERTIES' OR 'THE COMPANY')

Issue of Shares in connection with the acquisition of Pathfinder Recovery 1
PLC ('Recovery 1')

Holdings of Directors and connected parties in the Company's shares



The Board of Properties wishes to announce that on 26 June 2001 the Company
issued 6,995,698 new Ordinary shares of 10p each in connection with the
acquisition of Recovery 1, the Offer for which was declared unconditional in
all respects on 6 June 2001. Application has been made for these new shares to
be admitted to trading on the Alternative Investment Market of the London
Stock Exchange and it is expected that dealings in the new shares will
commence on 5 July 2001.

The issued share capital of the Company following the issue of the new shares
is £7,733,541.40 divided into 77,335,414 Ordinary shares of 10p each.

As a result of their acceptances of Properties' Offer in respect of their
holdings of shares in Recovery 1, the entitlement of certain directors to new
Ordinary shares in the Company is as follows:

Director        Holding in Recovery 1           New Properties Shares
M.G. Bacchus    5,000                           41,250
G.A. Heggie     32,504*                         268,158

*Shares held by Private Investors Monitoring Services Limited, a company in
which G.A. Heggie is a director and shareholder.

Following the issue of new Properties shares in connection with the
acquisition of Recovery 1 and the purchase of shares by Malcolm Bacchus
separately announced today, the interests of Directors and connected parties
in the Company's shares are as follows:

Director            Interest in Properties    % of Properties' issued share
                    shares                    capital
M.G. Bacchus        226,250                   0.29
S.P. Dawkins        30,000                    0.04
Sir Christopher     66,000                    0.09
Leaver
G.A. Heggie         326,978*                  0.42
M.J. Green          -                         -

*Includes the interests of Private Investors Monitoring Services Limited, a
company in which G.A. Heggie is a director and shareholder.



Enquiries:

Malcolm Bacchus, Pathfinder Properties PLC 020 7736 9669

Robert Lo, Nabarro Wells & Co. Limited 020 7710 7400



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