Placing

Terrace Hill Group PLC
29 April 2004


                      TERRACE HILL GROUP PLC ('The Group')

                               PLACING OF SHARES

                       SIGNIFICANT INSTITUTIONAL FUNDING


The Group announces that its Broker, Seymour Pierce Limited, has placed
28,600,000 new ordinary shares of 2p each at a price of 29p per share to raise
approximately £8.3 million of new funds (before expenses) with a number of
institutional investors. The proceeds of the placing will be used as general
working capital.

The placing is conditional only upon admission of the new ordinary shares to
trading on AIM.

Application will be made today for the admission of 28,600,000 new ordinary
shares of 2p each to trading on the AIM market. The new ordinary shares will
rank pari passu with the existing ordinary shares of the Group and dealings are
expected to commence in the new ordinary shares on 6 May 2004.  The number of
shares in issue following this application becoming effective will be
186,833,117.  At this morning's opening mid market price of 31.75p the Group's
market capitalisation would stand at £59.32 million.

Following the placing, the percentage interest of the Group's Chairman, Robert
Adair, and his Family will decrease from its present 81.16% to 68.74%. The
Directors believe that this reduction should increase the liquidity of the
Group's shares and their attractiveness to other investors.

Robert Adair, Group Chairman, commented: 'I am very pleased that we have been
able to undertake this placing which has added some very good institutions to
our shareholder base. I believe they will in particular have been attracted by
the potential of our £400m development programme and actively managed investment
portfolio, both of which have the potential to deliver a very good rate of net
asset value growth and earnings over the next few years.  The equity raised will
allow us to accelerate our growth over what it otherwise would be.'


For further information please contact:

Robert Adair, Terrace Hill Group PLC, Chairman                    01845 537 037
                                                          (today- 020 7631 1666)

Ross Macdonald, Terrace Hill Group PLC, Joint Managing Director   0141 332 2014

Alasdair Robinson, Noble & Company Limited                        0131 225 9677

Hugo de Salis, St Brides Media & Finance Limited                  020 7242 4477


Notes to editors:

Terrace Hill Group PLC is an AIM traded property company.  It has two divisions
(i) commercial development where the current development programme shows over
£200 million in hand and a further £200 million projected and (ii) residential
investment where it has 578 units, almost entirely in Scotland and the North of
England.  The Group recently reported a 15% increase in the value of its
underlying investment property assets since last October. A valuation carried
out for the end of its current financial half year, on 30 April 2004, reported
an uplift of at least £7m over the last reported figure of some £46.6 million,
or 30.3p per share, on 31 October 2003.


END

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