Investment strategy

Artisan (UK) PLC
08 May 2007

8 May 2007



                                Artisan (UK) plc


                          Investment property strategy



The Board announced in its trading update on 16 February 2007 that it was
examining the possibility of utilising its in-house skills to re-establish a
property investment arm within the Group. Following further review, the Board
has decided to pursue this strategy and hold selected properties from its
ongoing development property portfolio where it believes the covenant of the
tenant, possibility for further development or medium term asset appreciation
will provide scope for additional attractive returns to the Group over the
disposal of the property on completion. It will also consider selectively
acquiring third party properties where it believes that there is similar scope
for attractive returns.


The financial effects on the Group of retaining selected properties will
primarily be an increase in borrowings as these properties are financed and a
rise in related interest charges offset by a rental income stream. Recognition
through the income statement of the revaluation of the property at the point of
completion as opposed to the recognition of profit on sale, is expected to have
a broadly neutral effect on the declared profit on ordinary activities before
taxation of the Group.  In respect of the transaction announced today, more
details of which are set out below, the revaluation surplus is expected to be
reflected in the Income Statement with some contribution in the 15 months to 30
June 2007 and the balance in 2008.


As the first investment under this policy, the Board of Artisan is very pleased
to announce that a major forward let of a 36,600 ft2 industrial unit has been
secured to Black Teknigas Limited, a subsidiary of Watts Industries Europe BV.
The agreement to lease is in respect of a bespoke unit at Colmworth Business
Park, St Neots, due for build completion early 2008.  There is provision for the
development of an extension to this unit of 18,500 ft2, at the tenant's, option
over the next 5 years.  Further details of this forward let are set out in a
separate announcement also released today.



Artisan (UK) plc
Chris Musselle                      Chief Executive                 01480 436666
                                                         [e-mail]

Brewin Dolphin Securities Limited   Nominated advisers             0121 236 7000
Ifor Williams

Bankside Consultants                Financial PR advisers          020 7367 8888
Simon Rothschild                                                    07703 167065
Louise Mason


Company website: www.artisan-plc.co.uk


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