Re: Swansea Waterfront

Terrace Hill Group PLC
02 June 2006

2 June 2006

                    Terrace Hill Group PLC ('Terrace Hill')


                Sale of Swansea Waterfront Cyprium development



Terrace Hill, the AIM-listed property group, announces that it has today sold
its 70,000 sq. ft. Swansea Waterfront Cyprium office development for £16.65m,
representing a yield equivalent to 4.98%.  The property had been let to The
National Assembly for Wales and sublet to Admiral Insurance: 40,000 sq. ft under
a 20-year lease and 30,000 sq. ft under a 15-year lease.



Managing Director Philip Leech said: 'With a yield of 4.98%, the sale of Cyprium
is almost certainly a record for Wales and considerably above our expectations
at the start of the project.  On a similar theme, the letting to Admiral
Insurance of 70,000 sq. ft was the largest occupier transaction in Wales during
2005.   With demand for office property continuing to rise in Wales and the
South West, we remain upbeat regarding the outlook for activity in the area and
continue to evaluate a number of other opportunities.'



Lambert Smith Hampton and Knight Frank were the joint selling agents for Terrace
Hill.





                                  * * ENDS * *



Contact:

Philip Leech, Group Managing Director             Tel: [phone]

Alasdair Robinson, Noble & Company Limited Tel: [phone]

Isabel Crossley, St Brides Media & Finance Ltd           Tel: [phone]



Notes to editors



Terrace Hill Group PLC - AIM-listed property group with a Triple Net Asset Value
at 31 October 2005 of £89.985 million.  It has two divisions, Commercial
Development and Residential Investment and Development, with a total development
programme of around £900 million.  Terrace Hill reported an increase of over 20%
in pro-forma Triple NAV to 48.06p per share in the year to 31 October 2005, and
a 40% increase in final dividend from 0.5p per share to 0.7p per share.




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