Disposal

Warner Estate Holdings PLC ("Warner Estate" or"the Group")

Warner Estate disposes of its 50% interest in RadialDistribution Limited

Warner Estate Joint Ventures Limited, a subsidiaryof Warner Estate, together with its 50% joint venture partner, Uberior Ventures Limited,entered into a conditional agreement for the sale of their interests in Radial DistributionLimited (RDL) for £500,000 each to a Guernsey based company backed by London & StamfordProperty Limited on 7 May 2010. The disposal values the RDL assets including cashat £215.5m. The RDL assets, as at 31 March 2010, had an unaudited valuation of £206.7mbeing a net initial yield of 7.3%. RDL consists of 16 high bay distribution warehousesin the UK. The Board of Warner Estate expects the sale to complete this month.

Warner Estate's investment in RDL is held at £Nilin its unaudited accounts as at 31 March 2010 and hence the Group's 50% share ofthe unaudited net profit of RDL for the year ended 31 March 2010, £3.2m, is not recognisedin the Group's unaudited consolidated profit and loss account for the year to 31March 2010. The unaudited asset management fees receivable by Warner Estate underthe RDL contract for the year ended 31 March 2010 are £0.5m.

Warner Estate will receive from RDL approximately£3.3m in consideration for the termination of its asset management contract. Followingthis disposal Warner Estate will have £1.4bn of assets under management with annualasset management fee income of just over £9m.

The consideration received by Warner Estate willbe used to manage debt and to invest in the development and expansion of its assetmanagement business.

Philip Warner, Chairman of Warner Estate, commented:

"We are pleased to haveachieved a good price both for these assets and for the disposal of a relativelysmall part of our asset management business."

-ends-

Date: 10 May 2010

Enquiries:

Warner Estate Holdings PLC Tel: 0207 907 5100

Philip Warner, Chairman

Mark Keogh, Finance Director

Robert Game, Property Director

Web: www.warnerestate.co.uk

City Profile Tel: 0207 448 3244

Jonathan Gillen

Simon Courtenay

NOTES

Warner Estate Holdings PLC is a property investorand asset manager with around £1.6bn of assets under management as at 31 March 2010.

The Radial Distribution Fund was formed in December2004 and is a joint venture between Warner Estate Joint Ventures Limited, a subsidiaryof Warner Estate and Uberior Ventures Limited, a subsidiary of Bank of Scotland andnow part of the Lloyds Banking Group. The fund invested in high bay distributionwarehousing located near or at ports, airports, rail freight terminals and majormotorway intersections.

At the date of the disposal the Fund consists ofa portfolio of 16 properties in the UK, totalling more than 3.3 million sq ft (307,500sq m).