Acquisition

Sutton Harbour Holdings PLC
17 April 2000

Sutton Harbour Holdings is delighted to announce that the Company has today
concluded an agreement to purchase Plymouth City Airport Ltd. (PCAL), a wholly
owned subsidiary of British Airways Plc (BA).  The airport site is owned by
Plymouth City Council (PCC) and leased to PCAL.  The deal includes a
management contract for Newquay Cornwall Airport.  The Company has agreed
Heads of Terms with PCC for a new lease for which the Company will pay a
one-off lump sum.

The direct acquisition cost, including the cost of the lease premium, amounts
to £2.6m and this sum has been raised by the issue of 2,166,667 new shares at
120p each.  The new shares will not entitle holders to the final dividend for
the year 31 March 2000, but will rank alongside existing shares in every other
respect.  These new shares have been issued to new shareholders to the Company
and, as a result, the ownership of Sutton Harbour Holdings has been widened
and a number of institutional investors have joined the list of shareholders. 
Application has been made for the new shares to be admitted to the Alternative
Investment Market of the London Stock Exchange and it is expected that
admission will take place and dealing will commence on the 18th April in
respect of 1,666,667 new shares and that admission of the remaining 500,000
new shares will take place and dealing will commence on the 28th April.

The present Airport Director, Mr. John Humphrey, will continue to be
responsible for the day-to-day operation of the airport and will join the
Board of Sutton Harbour Holdings as an Executive Director.

Ambitious plans are in hand to upgrade and improve the airport.  The estimated
costs of £8.3m, which includes associated road and other works, will come from
the South West Regional Development Agency and from Plymouth City Council.

There are many safeguards in place to ensure that this is a prudent
investment.  For example, BA has given a three year guarantee that the
existing revenue from them of over £1.5m per annum will be maintained.  The
Company has also successfully secured its position in the event that the
airport improvement works do not proceed and in the event that the airport is
no longer technically and/or financially viable.

The synergy between the two companies is considerable with both deriving their
income from rents, fuel, dues and related trading, the only difference being
that one is a seaport and the other an airport.  The Board is convinced that
this acquisition is an exciting development for the Company.