Prop. Securitised Bond Offer

PEEL HOLDINGS PLC 11 October 1999 Press Release Peel Holdings p.l.c. Proposed securitised bond offering Peel Holdings p.l.c., advised by N M Rothschild & Sons Limited, announced today that it intends to proceed with a ca.£600 million multi tranche securitised bond offering to be secured against the future rental income from its wholly owned subsidiary, The Trafford Centre. Peel will retain a 100 per cent equity interest in the centre. Deutsche Bank will act as lead manager and bookrunner for the securitisation. The structure of the issue comprises several tranches of fixed and floating rate medium and long terms notes. It is the intention to market the issue over the coming weeks and to launch the transaction after an investor roadshow. The net proceeds after the expenses of the issue will be used to repay approximately £340 million of existing debt (currently bearing interest at 9.3 per cent.), to pay certain costs associated with the early repayment of these loans and to provide funds for the further development of the Peel group. This will include continued investment in its airports and other capital and investment projects. In accordance with the authorities given by shareholders, Peel may also continue to buy-in shares for cancellation when the Directors believe that to do so is in the best interests of shareholders generally. The Trafford Centre comprises 1.36 million sq. ft. of shops, restaurants and leisure facilities including a 20 screen multiplex cinema, making it one of the largest retail and leisure schemes in the country. Anchor tenants include Selfridges, Debenhams, BHS, Boots and C&A. Opened in September 1998, the Centre is approximately 4 miles west of Manchester City Centre adjacent to the M60 motorway. It benefits from one of the largest and most densely populated catchment areas and the highest design specifications of any shopping centre in the UK. The Centre was independently valued on 31st March 1999 at £855 million. Enquiries Peel Peter Scott, Managing Director, 0161 888 8208 N M Rothschild Stephen Louis, Director, 0171 280 5711 Richard Bailey/Peter Bates, 0161 827 3800 Deutsche Bank Lemy Gresh, Managing Director, 0171 547 3339