Issue of Equity

Real Estate Investors PLC ("REI" or "the Company")

Issue of Equity

REI announces that, yesterday, it placed 4,000,000 ordinary shares in the
Company ("Ordinary Shares") at a price of 10p per share, raising £400,000 before
costs.

In addition, as announced on 26 June 2006, Paul Bassi, a director of the
Company, has subscribed for 1,250,000 Ordinary Shares at a price of 10p raising
£125,000 before costs.  Mr Bassi has also been granted warrants over 625,000
Ordinary Shares with an exercise price of 12p per share.  These warrants will be
exercisable from the first anniversary of the date of grant for six years
thereafter (or earlier at the discretion of the Board).

Following these transactions, Mr Bassi has a beneficial interest in 12,425,000
Ordinary Shares and 6,212,500 warrants over Ordinary Shares representing 14.01
per cent. and 7.00 per cent., respectively, of the Company's issued share
capital.

The funds raised will be used by the Company for working capital purposes.

An application has been made for the 5,250,000 new Ordinary Shares (which will
rank pari passu with existing Ordinary Shares) to be admitted to trading on AIM
and trading is expected to commence on 11 August 2006.


8 August 2006