Report on Property Acquisitions & Other News

Property & Capital Group PLC
17 April 2000


                PROPERTY & CAPITAL GROUP PLC ('THE GROUP')

                PROGRESS REPORT ON PROPERTY ACQUISITIONS

                    PLANNED BONUS ISSUE OF 'C' SHARES

The Group continues to make excellent progress in negotiating the acquisition
of two property portfolios, with the consideration being satisfied by the
issue of ordinary shares in the Group following the approval by shareholders,
at an EGM, to increase the authorised share capital of the Group (as announced
on 10 March 2000).

It remains the strategy of the Group to achieve the bedrock strength of a
sound and substantial income producing property portfolio with a modest level
of gearing.  Such a portfolio is intended to provide income to cover the whole
interest costs and overheads of the Group, and should achieve worthwhile
capital growth.  Judicious disposals of lower yielding/performing property
will enable the Group to enhance the portfolio whilst also providing the
resources to make sound investments in 'high-tech' areas.

The Directors believe that there is significant upside potential in certain of
the Group's high-tech investments due to transactions in contemplation.  Until
these transactions take place it is not possible to properly revalue these
assets in the balance sheet.

Therefore, prior to making the property acquisitions referred to above, the
Group intends to make a distribution, by way of a bonus issue of 'C'
(convertible) shares to shareholders of existing ordinary shares in the
capital of the Group.

The record date for entitlement to the bonus issue of 'C' Shares will be fixed
shortly and then announced, but is likely to be around 31 May 2000, before
completion of the above property acquisitions which are intended to be made
for ordinary shares without that entitlement.

It is intended that the 'C' Shares will carry all the potential increase in
value of the Group's high-tech investments made since 8 February 2000 (the
date of the acquisition of PCG Residential Lettings Holdings PLC, in respect
of which a pro forma balance sheet was published) up to and including the
record date and including investments made in Telematix and IPBell.

The 'C' Shares will be convertible into new ordinary shares on a basis of the
increased value of relevant high-tech investments relative to the Group's net
asset value one year after the date of issue, or partially upon the earlier
listing/disposal of such investments.

Upon their issue, it is intended to seek admission of the 'C' Shares to
trading on AIM.  Creation of the 'C' Shares requires approval of members at an
EGM, details of which, together with further information on the 'C' Shares,
will be announced shortly; meantime the Directors are assured of sufficient
votes in favour of this bonus issue.

Following the issue of the 'C' Shares, the Group proposes to continue to
invest in the high-tech sector, with new investment thereafter being for the
benefit of all ordinary shareholders.