Acqn. of Minority Interest

Terrace Hill Group PLC
19 April 2005

For embargoed release at 7 a.m.                      19 April 2005


                    TERRACE HILL GROUP PLC ('Terrace Hill')

          ACQUISITION OF MINORITY INTEREST - TRANSACTION WITH DIRECTOR

Terrace Hill, the AIM traded property group, announces that on 18 April 2005 it
acquired the outstanding 15% of Terrace Hill North East Limited ('THNE') from
Philip Alexander Leech, Managing Director of Terrace Hill.  The consideration of
£1,116,357 will be satisfied half in cash and half by the issue to Mr Leech of
1,395,447 new Ordinary Shares of 2p each of Terrace Hill at a price of 40p each.

THNE was set up for Terrace Hill by Mr Leech in 1994.   Over the last five
financial periods the profit before tax of THNE and its subsidiaries averaged an
annual rate of £1.3m, and at 31 October 2004 net assets stood at £2.5m and
triple net asset value at £7.4m.  The net asset value does not reflect the
substantial increase (above cost) of work in progress, or the opportunities over
the next 10 years for the development of Baltic Business Park on Tyneside, an
important part of Terrace Hill's current development programme. The
consideration to be paid to Mr Leech has been calculated on the basis of triple
net asset value as at 31 October 2004 and is therefore not dilutional to Terrace
Hill's own TNAV per share.

Terrace Hill Chairman, Robert Adair said:  'Since its early days, THNE has
performed extremely well - a performance which in no small measure led to the
recent appointment of Philip Leech as Group Managing Director.  THNE has a
number of exciting projects in development and in the pipeline and has gained a
reputation of developing and managing high-quality schemes.'

Negotiation of the transaction was carried out on behalf of Terrace Hill by
Robert Adair, Chairman, and Nigel Turnbull, Deputy Chairman.  The transaction is
conditional upon approval by shareholders of Terrace Hill in a general meeting
pursuant to section 320 of the Companies Act 1985.  Terrace Hill has today
issued a circular convening the required extraordinary general meeting on 5 May
2005.

Subject to the approval of the transaction by shareholders of Terrace Hill at
the extraordinary general meeting on 5 May 2005, application will be made for
the 1,395,447 new Ordinary Shares forming part of the consideration to be
admitted to trading on the AIM market.


                                  * * ENDS * *

Contacts:

Robert Adair, Chairman, Terrace Hill Group PLC                Mob: [phone]
                                                              Tel: [phone]
Nigel Turnbull, Deputy Chairman, Terrace Hill Group PLC       Tel: [phone]
Hugo de Salis/Isabel Crossley, St Brides Media & Finance Ltd  Tel: [phone]
Alasdair Robinson, Noble & Company Limited                    Tel: [phone]

Notes to editors:
Terrace Hill Group PLC is an AIM traded Property Group with NAV £70 million. It
has two divisions, Commercial Development throughout the UK and Residential
Investment and Development in Scotland and the North of England, with a
development programme of almost £600 million with approaching £200 million
underway. Terrace Hill recently reported an increase of over 25% in both NAV and
pro-forma Triple NAV to 38.12p per share and 39.99p respectively in the year to
31 October 2004, and an increase in final dividend from 0.15p per share to 0.50p
per share.

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