Initial Response to Preliminary Approach

FOR IMMEDIATE RELEASE

1 April 2010

SOVEREIGN REVERSIONS PLC

("Sovereign" or the "Group")

The Board of Sovereign notes the announcement by Grainger PLC ("Grainger") of 29 March 2010. The Board has carefully considered the offer of 185 pence per share, taken advice from its financial advisers and has concluded that it significantly undervalues the Group's business and prospects. The Board is now seeking to establish a dialogue with Grainger in order to share information with a view to establishing the maximum price that Grainger would offer. The Board is also reviewing other options to maximise value for Sovereign shareholders.

Further announcements will be made as appropriate, but shareholders are recommended not to take any action in the meanwhile.

Charles Stanley Securities is a trading division of Charles Stanley & Co Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Sovereign Reversions PLC and its Directors and no one else in connection with this matter and will not be responsible to anyone other than Sovereign Reversions PLC and its Directors for providing the protections afforded to clients of Charles Stanley Securities nor for providing advice in relation to this matter, the content of this announcement or any matter referred to herein.

Dealing Disclosure Requirements

Under the provisions of Rule 8.3 of the Code, if any person is, or becomes "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of Sovereign Reversions PLC, all "dealings" in any "relevant securities" of Sovereign Reversions PLC (including by means of an option in respect of, or a derivative references to, any such "relevant securities") must be publicly disclosed by no later than 3.30pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of Sovereign Reversions PLC they will be deemed to a single person for the purpose of Rule 8.3.

Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of Sovereign Reversions PLC by the potential offeror or Sovereign Reversions PLC or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the business day following the date of the relevant transaction.

A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.takeoverpanel.org.uk.

"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. Terms in quotation marks are defined in the Code, which can also be found on the Takeover Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Takeover Panel.