AGM Statement

Sutton Harbour Holdings PLC
25 July 2006


                  Sutton Harbour Holdings plc ('the Company')

                                 AGM Statement


Your company has made significant progress in the last two financial years as
Air Southwest was established and grew, and activity in the regeneration and
property sector expanded. We have seen group profits grow quickly over this
period.


This year will be one of consolidation as we bring forward new projects,
particularly in the regeneration and property sector, to provide profits growth
over the medium term.


In Plymouth the DWP office building is now complete and with the ground floors
of new harbourside developments let or nearly let to commercial tenants, we are
pushing on with the next phase of development to the East of the harbour. Again,
we aim to bring a mix of uses to the area including residential, office and
commercial. We are also working on a major canalside scheme in Exeter and we
continue to bid for a number of public-private partnership initiatives including
LIFT schemes elsewhere in the country. The first phase of the Plymouth LIFT
schemes is now complete and we hope to have the next phase in the ground early
in 2007.


Air Southwest started new routes on 10 April from Newquay to Cardiff and
Manchester and from Bristol to Norwich and these are showing a normal pattern of
sales growth for new routes. After accounting for extra costs in connection with
the launches and marketing spend we would not expect these new routes to be
profitable in their first year of operation. Other routes continue to be popular
although we have had to contend with a number of factors over the last few
months, not least being the continuing high cost of fuel. We noticed a waning in
demand for tickets during the World Cup and we experienced poor weather during
May.


Although the withdrawal of Air Wales from Plymouth City Airport has reduced
passenger-related revenues, the airport has been active in promoting its
facilities to light aircraft pilots and continues to boost income by renting
land for parking.


Our Marine Activities have again made a satisfactory start to the year. Fishing
continues to perform steadily with the summer scallop season coming onstream and
marina incomes have been swelled following the near capacity letting of berths
on the new West Pier Marina.


We are continuing our strategy of balancing our different activities to reduce
risks. At the interim stage last year the reported results showed a large
increase due to the exceptional performance by Air Southwest. This half year, we
expect to report a more modest performance from our transport sector given the
trading factors that I have already outlined but a stronger performance from the
regeneration sector.


Your company has no shortage of opportunities and is working to progress these.
We are pleased with the company's achievements and look forward to bringing the
next phase of regeneration projects to fruition to provide stable returns in the
future.


Enquiries:          Nigel Godefroy                           Tel: [phone]
                    Managing Director


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