Update Banking/Property

Capitaltech PLC
15 November 2001



CapitalTech plc ('the Company')



UPDATE ON BANKING FACILITIES AND PROPERTY SALES


The following information is contained in a letter being sent to Shareholders
of the Company today.


Property Sales


Part of the Company's published strategy includes selective disposals from its
residential property portfolio to improve that portfolio.  This includes sales
with vacant possession of flats and houses which it does not seek to continue
to hold, often because prospective rental yield is low.



In view of the recent speculation regarding a possible slowing down of the
housing market, the Company considers it appropriate to state that its sales
of such empty properties in October in England and Wales noticeably exceeded
the monthly average during its half year to 31 October 2001.



The Company also finds the housing market in Scotland strong and believes that
the housing market in Scotland, and generally in its portfolio of modestly
priced houses, may better reflect the greater affordability of housing due to
interest rate falls, rather than as might be seen in respect of very expensive
property where borrowing costs may not have such a significant impact.



Banking


The Company has replaced  medium and short-term borrowings with a £30 million
revolving credit facility which should provide access to finance for further
deals.



The borrowings replaced were a term loan of £17.6 million with three years
unexpired and borrowings on overdraft of £7 million.  The new revolving credit
facility is for five years with interest at a margin of 1.25% over LIBOR, a
margin which the Company understands to be fairly standard for residential
portfolios.  In respect of £20 million of the facility the Company has fixed
the LIBOR rate for two years at 4.68%.  To date, the Company has only drawn
down the facility to the extent of £24.6 million to repay the above
borrowings.