Trading Update

Terrace Hill Group PLC
01 October 2007



             Terrace Hill Group plc ('Terrace Hill' or 'the Group')


                                 Trading Update


Terrace Hill, the AIM-listed property group, is pleased to announce that trading
continues to be buoyant and that activity levels across all divisions remain
high. Particular highlights include the letting of a 237,000 sq ft warehouse in
Redditch, the acquisition of a retail warehouse development site in Ashington
and Terrace Hill's appointment as preferred developer for an urban regeneration
scheme in Middlesbrough.


The key details for each of these recent trading developments are as follows:


   •The letting of Redd42, a 237,000 sq ft high bay distribution warehouse
    development at Ravensbank Business Park in Redditch, West Midlands, to
    iForce Limited at an initial rent of £5.75 per sq ft. iForce Limited will
    use the unit as the national e-fulfilment centre for John Lewis Direct.
    Development of the site, following planning approval to increase its
    capacity, was completed in October 2006. This property is held within the
    Terrace Hill Development Partnership.


   •The conditional acquisition of a 3.3 acre retail warehouse development
    site from Asda in Ashington town centre in Northumberland for a net purchase
    price of £4 million. A planning application has been submitted for 30,000 sq
    ft of retail floor space, which would allow fashion and other high street
    uses within the development. The acquisition will complete once planning
    consent has been granted. The site has the potential to be extended to
    accommodate up to 100,000 sq ft of additional retail space through an
    agreement with the Local Authority.


   •The appointment of Terrace Hill as preferred developer of an urban
    regeneration scheme in the centre of Middlesbrough known as Central Gardens.
    The landowner, Middlesbrough Borough Council, has appointed Terrace Hill to
    create a phased development, which will include up to 130,000 sq ft of
    offices and a 100 bedroom hotel. Master planning of the site is currently
    underway.


Group Managing Director Philip Leech said, 'We continue to see strength in the
letting markets for good quality property in the right locations. Our emphasis
on developing to the best specifications in strategic locations has once again
been borne out by the substantial letting at Redditch. Our ability to add value
through the development process should help the Company's ADNAV to grow in the
coming year.'


                                  * * ENDS * *


For further information please visit www.terracehill.co.uk or contact:

Philip Leech, Group Managing Director Tel: [phone]

Nick Athanas, Noble & Company Limited Tel: [phone]

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


Notes to editors

Terrace Hill Group PLC is an AIM-listed property group with three key divisions:
Commercial Development, Residential Investment and Development and House
Building. It has a total development programme of £1.3bn and a market
capitalisation of around £180 million.




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