Issue of Equity

Real Estate Investors PLC
02 August 2005





Issue of Equity

Real Estate Investors PLC ("REI" or "the Company") announced on 31 May 2005, the
completion of the acquisition of five freehold, commercial properties for a
total consideration of £3,499,320 on 27 May 2005. The agreement provided for the
consideration to be paid as to £3,284,388 in cash and the balance was satisfied
by the issue to the vendors of 1,999,400 new ordinary shares in REI at a price
of 10.75p per share.

Following the completion of an outstanding rent review in respect of 19/21
Kirkgate Wakefield, in accordance with the sale and purchase agreement, further
consideration of £247,350 is due.  This has been satisfied through cash and the
issue of 230,093 ordinary shares at a price of 10.75p per share on 1 August
2005.

Application has been made for the 230,093 ordinary shares (which will rank pari
passu with the Company's existing issued ordinary share capital) to be admitted
to trading on AIM and this is expected to take place on 8 August 2005.

2 August 2005






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